Chargebacks & Deductions

What is vendor compliance?

Vendor compliance is the set of operating rules a retailer imposes on its suppliers, covering how orders are acknowledged, how goods are packed and labelled, which carriers are used, when deliveries arrive, and which documents are exchanged. The rules live in the routing guide and the vendor manual, and each one has a penalty attached.

Compliance programmes are revenue for the retailer as well as a control mechanism. That is not a reason to treat the rules as unfair, but it does explain why they are enforced automatically, with no exception process to appeal to.

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