Walmart Compliance Updates – On Time and In Full, or Charged Back

July 17, 2017

Walmart comes down hard on trading partners for early, late and incomplete deliveries.

Brace yourselves, Walmart suppliers – the leash is about to get much shorter.

Scrapping its previous Supply Chain Reliability Program, the retail giant is increasing pressure on trading partners. Walmart’s new “On Time In Full” (OTIF) program, which goes into effect in August, will automatically fine trading partners that fall outside an even tighter threshold for early, late or incomplete deliveries – no excuses.

Under Walmart’s previous rules, suppliers were expected to achieve a 90-percent fill rate and were held to delivery windows of four days for general items and one day for perishables and other fast-turning items. Furthermore, chargeback disputes often resulted in a waived fine.

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JCPenney EDI Updates – Consolidation of the Order Process

July 12, 2017

Enterprise Ordering Consolidation

JCPenney has released new EDI updates and is consolidating the ordering processes for all of their stores and eCommerce channels. The changes are part of a larger initiative designed to provide a suite of tools and processes that support an Omni Channel business. The planned enhancements will drive and require changes in the systems and processes that JCPenney and its suppliers use to partner in support of the business. These changes do not impact Factory Ship Customer Orders. Here are the specific call outs of this EDI update:
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Out of Control Chargebacks

March 9, 2016

Studies indicate that chargebacks can add up to almost 2 percent of revenue. Ask these three questions to learn whether or not chargebacks are out of control in your organization.

Usually retailers have good reasons for implementing chargebacks. Yes, chargebacks can be painful, but the retailer believes that the momentary financial pain will drive suppliers to better comply with policies and eliminate costly inefficiencies in the overall supply chain.

However, when the supplier lacks visibility into the actual reasons for those chargebacks and are unable to fix the systematic problems, they usually resign to the fact that chargebacks are simply a ‘cost of doing business.’
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Why Deduction Thresholds Do Not Work

February 8, 2016

Many CPG suppliers implement deduction thresholds when applying cash from a retailer. These thresholds are designed to speed the process by allowing minor deductions (i.e. under $75) to be ignored while larger deductions are scrutinized.

We see it almost every day—accounting teams working to streamline operations implement deduction (or chargeback) thresholds to reduce the amount of research time spent on issues that are considered ‘too small to worry about. These thresholds are the result of large retailers issuing chargebacks and fines for a variety of issues.
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1 EDI Source and Tier1 Announce Partnership to Offer Comprehensive EDI Solution for Oracle EBS Users

October 16, 2015

Partnership to enhance client experience through combined expertise and dynamic software and service offerings.

1 EDI Source, Inc. and Tier1, Inc. today announced a partnership to leverage each other’s knowledge and mutually enhance customer experiences.

1 EDI Source, Inc. is one of the nation’s leading providers of electronic data interchange (EDI) software and SaaS solutions including EDI/HQ, EDI/PX, managed EDI services and supply chain visibility through IntelligentXchange.

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How CPG Can Better Prepare their EDI Systems for the Holiday Rush

August 24, 2015

As most of the consuming public is experiencing “Back to School” season in stores, our consumer packaged goods (CPG) clients are fully engaged in preparations for Black Friday, Cyber Monday, holiday retail and the .COM shopping season.

We understand this cycle strains many of our clients to maximum capacity. Hey, you’ve planned all year for this. It’s why no one can take a vacation in late summer and why you’ve hired temps for the warehouse.

So, as you launch into high gear, make sure that your EDI solution is supporting your peak requirements.
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