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Chargebacks - Deductions - Invoice Offsets – Fines: AVOID Them!

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Yes, I am bringing up charge backs again.  The infamous offset expense that usually ends up wrecking the profitability of many retail suppliers is something which needs to be discussed continually.  For many suppliers, keeping up with a retailer’s compliance guides is a challenge.  For many, seeing a single order with a retailer fine or charge back attached to it may not seem like a big issue – add them up at the end of a quarter or annually and you will see 3-4% of your sales evaporate. 

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Proliferating CPFR

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CPFR®
CPFR is a business model which has received significant attention in Supply Chain over the years.  A noticeable percentage of the VICS website is dedicated to it.  Dozens of papers have been written on the subject.  You as an individual can take classes and become certified and so on.  I first read the VICS CPFR content back in ’05 trying to learn more about VMI processes.  Just as a person learns the difference between a boat and a ship, CPFR didn’t tell me much of anything about VMI, but I kept coming back to it.  The concept of CPFR is amazing.  Collaboration is something our mothers taught us when they first set us into a sandbox with other children.  We all mutually benefited by sharing toys and helping someone build a sand castle can be incredibly rewarding, even fun.  Being in the sandbox with trading partners, working to improve margins, inventory turns or reduce stock-outs is better.   {jcomments on}

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Support & Service - Not Just Behind The Counter

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When I had originally written this article, I was still “gainfully employed” by a big retailer.  Since then, I’ve (obviously) been searching for a new EDI Gig and keeping abreast of all the news in the EDI world – especially in Retail EDI, since that’s where the background and experience comes from.

I’ve also “started” a new venture –a gift shop/store at a local “open air market” (aka Farmer’s Market) in the Palm Springs area.  And since things there are doing … well, pretty good so far … I’m thinking of going “brick and mortar” and starting a regular store in a real store front – not just on weekends, but 7 days a week and seeing how it goes and grows…

At Bear Necessities (what we’re calling the gift shop), we really strive to deliver great prices and excellent service.  We had a customer have an issue with an item and I went out of the way to order a new one and deliver it to the customer’s local place of business.  They were happy with that support.

 And service and support came to mind with all of the talk about the recently announced “merger” of two of the EDI world’s biggest players – GXS and Inovis.  So many fear that the relatively superior service and support from Inovis will slip with the mating of GXS, who is not known for exemplary support and service…

So, on with the original article and topics of support and service and the importance of it all…

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3rd Party EDI Testing Services, Anyone?

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Earlier today I sat in on a webinar showcasing an EDI testing service designed to facilitate a retailer’s on boarding or ‘ramping’ process.  Being familiar with some of the initial work done in the industry around this concept I sat in and tried to be objective.  Compared to the ones I have known/read about/dealt with in the past the slight nuances to Direct EDI’s model in contrast to the others – seems like it is well designed, with intuitive interfaces, a good business model, etc.{jcomments on}

Last Updated on Tuesday, 22 June 2010 16:15 Read more...
 

Charge Backs – pro and con.

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In a recent article on RetailEDI.com, there was mention about “charge-backs” and ways to avoid them.  I’ve also touched on charge-backs before, and it’s something that I just have a difficult time understanding.

Don’t get me wrong – I know what it’s about.  If the vendor makes an error and it delays the processes of receiving or whatever, the retailer will charge them a fee – sometimes a flat dollar amount, sometimes a percentage of the item cost times the quantity, sometimes figured some other way.  But the fee is charged to the vendor and they’re expected to pay.  It may be deducted from the invoice for the shipment with the error, or applied to a different invoice, shipment or order.

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