Vendor Compliance

The term Vendor compliance encompasses the set of rules laid out by a customer that govern how vendors must conduct business with that particular customer.  Typically, companies that deal with a large number of customers and an even larger number of products have these rules in place.  The most common customer of this type is a large retailer with multiple locations and its own distribution system.  These rules can be quite complex and are unique to each customer.  As a result, vendor compliance rules can be difficult and expensive for a company to implement and follow. 

Failure to follow vendor compliance guidelines can result in significant monetary penalties and fines.  Usually, these charges are deducted from invoice payments without recourse from the vendor.  Periodic vendor compliance audits are also conducted and repeated failure on these issues can result in purchase order cancellations.  American Fulfillment has extensive experience in vendor compliance management and works diligently to avoid this often unforeseen expense.