|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.