SupplyPike CEO Dan Sanker was recently invited by Congress’ Subcommittee on Digital Commerce and Consumer Protection to serve as a witness during its “Review of Emerging Tech’s Impact on Retail Operations and Logistics.” He spoke on topics such as the future of SCM workforce, blockchain and IoT in supply chain, and supporting high school students with real-life tech opportunities. Check out some of his insights below.
Ever get a check back from Walmart with big, fat negative numbers and some mystery codes attached to them? Walmart will sometimes subtract deductions from your invoiced amount for various infractions and label them with corresponding reason codes. The three most common adjustment codes are 22, 24, and 25.
Making sure you are compliant with OTIF requirements can be tricky. You’ll need to do in-depth analysis into potential issues, such as warehouse issues and carrier delays. The various silos of your organization must interact with each other to ensure full compliance and prevent future chargebacks from happening.
Not complying with your purchasers’ OTIF requirements can be very costly, and result in hefty fines. For example, Walmart fines its vendors 3% of the cost of goods sold if the order fails OTIF requirements. In 2016, Target stores increased their OTIF penalties to 5% of the order cost, five times what it previously was. That kind of money adds up!