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Upgrade your Vendor Compliance Program with Managed Vendor Compliance Manuals.

The State of Compliance: Vendor Compliance in the Supply Chain

The modern retail supply chain has rapidly advanced to become the most remarkable and efficient automation system since Henry Ford developed the assembly line. Global suppliers oceans away are accepting XML purchase orders over the Internet in the middle of the night, filling them with perfect precision using advanced voice picking systems, and arranging fast, efficient transportation to automated retailer distribution centers, which organize millions of cartons of merchandise by scanning advanced RFID data at 600 feet per minute. This immense, efficient system has allowed all parties involved to cut costs, sell merchandise, analyze results, and ultimately increase profits.

One of the last "links" in the global supply chain to be fully automated and integrated is the retailer's vendor compliance program. Because vendor compliance does not have a direct cause and effect within current computerized supply chain management systems, it is mostly ignored, and relegated to simple documents and labor-intensive manual processes. The largest, most technologically advanced retailers are still publishing their Vendor Compliance Manuals as incomplete, poorly organized Microsoft Word or PDF files, are handling requirement exemptions via paper, and communicating by fax.

Vendor compliance has become increasingly important to further reduce operating expenses and streamline the retail supply chain. Everyday more retailers are mandating stricter requirements, and pushing for better vendor performance. It appears vendor compliance programs are beginning to advance faster than the supply chain systems supporting them.

NEXT: Upgrade your Vendor Compliance Manual to upgrade your Supply Chain
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