International Relations – Vendor Compliance

Jun 16, 2016News

Far too often there seem to be hidden costs that can accompany purchase orders and freight. Visibility for these costs are often low to customers and can come as a surprise. At TOC Logistics, we employ vendor compliance to analyze and track inbound freight costs and make sure that our customers are never surprised and have access to high visibility for all aspects of the supply chain. Many vendors have diverse requirements, manuals, and routing guides that can make the supply chain more difficult. Thankfully, these compliance requirements are published to ensure that logistics organizations, like TOC Logistics, are able to effectively comply with these rules while delivering transparency and efficiency to their customer.

Vendor compliance requirements can include how shipping cartons are packed, shipping label requirements, freight weight or dimensions, and communicating status updates. For smaller companies, maintaining vendor compliance can be difficult and may involve jumping through a lot of hoops. For supply chain organizations with the software and skilled staff to handle the task, clients can rest easy knowing that their freight will comply with multiple vendors and no hidden costs will arise during its journey.

When freight does not comply with regulations, there is the risk for financial penalties or that the vendor may no longer want to work with the client or organization. These potential risks with vendor compliance make working with a logistics organization an easily solution to avoid hidden costs or broken rules.

While some of the rules and regulations may seem arbitrary, it is all for the greater good and increased efficiency for all. A shipping label in the wrong spot could require a human instead of robot or technology to identify the information, thus slowing down the overall process. Incorrect dimensions or weights can bring some obvious logistical problems to mind. Third party logistic providers (3PL) are able to navigate through these complications and simplify the process for all involved. The 3PL is able to package or repackage the freight to meet vendor specifications and expedite the process due to their expertise on how to do so. While many small organizations can not afford the software that makes vendor compliance simple, 3PLs have made that software worth their investment and time and are able to work with companies of any size to accomplish their goals while maintaining vendor compliance.

At TOC Logistics, we use cutting-edge software and believe in continuous education to serve our clients in innovative and effective ways. While vendor compliance can rapidly change, we pride ourselves on our ability to prevent potential problems, stay cost effective and provide our clients with the highest level of visibility that is available. Contact us today to see how TOC Logistics can provide you with a customized solution.


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