Key Elements in Your Vendor Compliance Policy

Below is a list of typical policies, requirements and chargeback schedules included in fully developed manuals used by larger companies. But don’t let this list intimidate you.

Start with policies that give you the greatest benefits, cost savings and efficiencies. If you develop those requirements first, you can expand the manual in later seasons:

• company history, vision and expectations for customers;

• what back orders cost the business;

• service standards;

• on-time delivery to committed delivery date;

• products delivered in proper condition and agreed-upon manner;

• product quality specs;

• product packaging and polybag specs;

• label marking for retail shipments vs. direct;

• supply chain system requirements (electronic P.O.s, ASNs);

• master pack and inner pack sizes;

• case labeling guidelines;

• accounting and paperwork requirements;

• logistical requirements;

• routing guides to reduce costs;

• scheduling appointments;

• cross-docking requirements;

• direct-to-store requirements;

• drop-ship instructions;

• schedule of chargebacks for noncompliance;

• customer return of merchandise and credits; and

• contact list, including merchandising, distribution center, accounts payable, drop-ship orders and inventory control.