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Navigating Barcode Requirements of Vendor Compliance Programs

Any company that works with high-volume retailers must maneuver through each retailer’s vendor compliance guidelines. While there are many similarities between different retailer’s requirements, there are few universal industry standards that vendors have to adhere to for each of their retail clients. Because of this, vendors could have to adhere to a different set of compliance rules for each of their retail clients.

Vendor Compliance Guidelines Benefit Both Retailer and Vendor

Retailers institute these policies because they deal with countless vendors on a daily basis. Vendor compliance guidelines help them standardize and streamline the process, with consistent internal systems and policies. For vendors, however, these often disparate standards can turn into a significant expense, in terms of updating computer systems, improving quality control methodology, and managing multiple systems for different retailers. However, vendor compliance programs are also beneficial to vendors:

Ensuring Compliance: Barcode Strategies

By far, the most common reason that vendors incur chargebacks is barcode quality. The labels on individual products, master cartons and pallets are especially important, because each barcode that is inaccurate or cannot be scanned may result in a separate chargeback. Thus, it is critical to select the best kind of barcode printing method and materials for each retailer and each level of product packaging.

Because barcode errors are the number one cause of vendor compliance violations and chargeback penalties, it is often preferable to enlist an expert to design and print barcodes on the vendor’s behalf, or to have an expert design the vendor’s internal printing system. This is especially true if the vendor’s different retailers have widely variant requirements.

The best way to avoid vendor compliance violations is to understand each retailer’s compliance standards thoroughly, and use them as guidelines for streamlining business. Ultimately, the choice to adhere to vendor compliance guidelines is the choice to promote growth and build profit for a business.