Warehousing is a space where inventory is stored and safeguarded till there is a sales order to ship it out. All the inbound shipments are maintained and organized in the warehouse to be later shipped to the retailers, customers, and distributors who highly depend on the performance of inbound deliveries. Maintaining a good relationship with the vendors and ensuring them on-time and successful deliveries is an important task and a challenge in itself and to manage that, one has to follow best practices for effective vendor management.
Vendor compliance program
In today’s dynamic business world, a small error can cost you not just your budget, and customer loyalty but also your reputation. All the companies today are requesting clear and pre-agreed cooperation models to guarantee an effective partnership with their suppliers and one of the best ways to do so is to have a vendor compliance program. The Vendor compliance program is an agreement that pre-defines all the conditions and terms between the supplier and the consignee and in case of any breach, the penalties for violation. Once the conditions are finalized, the agreement becomes non-negotiable.
Being a regulated agreement, the main objective behind its implementation is to ensure better performance and security when a failure occurs, and with all the terms and conditions pre-defined, the shippers have the opportunity to get their costs back on any failed transaction on the vendor’s behalf.
While in vendor management, as soon the orders come from the vendor, the goods are packed and sent to the delivery point. However, tracking of shipment is crucial at all stages and this can be done by using an automated process called TMS or Transport Management System that will help track the transit of the goods up to the point of delivery. One can also analyze the acquired information by understanding what hinders the smooth transportation process and where the unnecessary expenses can be curtailed.
Partnership with 3PL
Generally, the suppliers do not have the resources or industry expertise to analyze the most efficient way of delivering goods; hence they need to get into a partnership with 3PL for the best logistics expertise. An experienced team in 3PL can help make all the right decisions by quickly accessing the orders, tracking, picking and packing, choosing the right vehicle, and optimizing routes to reach the maximum efficiency for delivery of the order.
20Cube logistics is providing vendor management services by automating all its processes and delivering the shipment to its final customer in the best possible way.