Are Retailer Compliance Fines Eating Away at Your Profitability?

Selling your products into large retailers can lead to big sales and revenue growth, but also come with the challenges of managing the complex compliance requirements that differ for each major retailer. You should expect to be closely measured on your vendor performance which can ultimately determine your profitability – while bad performance can lead to huge fines that eat away at margins.

Shipping fines are not an occupational hazard

It’s not uncommon for vendors to incur fines of 10 – 15% of the value of their orders for any number of small infractions. And it can happen so easily – from mislabeling, shipping errors, and late deliveries – your shipments are fines waiting to happen. It takes a 3PL that understands retail requirements to make your business shine.

Making the change to a 3PL

Despite all the advantages of working with a 3PL, there are still manufacturers that try to do it themselves.

A leading manufacturer of home-building wire selling to Home Depot was incurring over a million dollars a year in fines. For years, this manufacturer just went about their business, paying massive fines, and telling themselves that the pay-outs were just the price of doing business. As fines continued to increase year after year, the manufacturer finally decided that they had to find a better way.

Fortunately, this story has a happy ending. The manufacturer partnered with Derby Supply Chain Solutions and has reduced their fines by over 80%.

“Business as usual” is not always “business at its best”

It can be challenging to take those first steps in handing over the fulfillment reigns to a third party. But, at the end of the day, partnering with Derby Supply Chain Solutions allows you to benefit from our experience and expertise to help you make a seamless transition.

The bottom line: The benefits of using a 3PL include saving you time and money, market expansion opportunities, a vast resource network, scalability and flexibility, and continuous optimization.

Pay fewer fines, see a better retailer scorecard, and watch your sales grow by working with Derby Supply Chain Solutions.

Derby Supply Chain Solutions is a 3PL with more than 40 years of experience in vendor compliance and satisfied clients at our locations in Kentucky, Tennessee, Pennsylvania, Illinois, Indiana, Iowa, Georgia, and Maine.