During the pandemic, big box retailers like Target and Walmart relaxed some of their usual policies in regards to time and the tardiness of vendors’ and suppliers’ shipments. It has long been common practice to censure late shipments with fines and loss of shelf space, but with the world, on fire as it was, they would’ve had no suppliers left. However, since the supply chain has been in a constant state of snarled chaos, elasticity can and should be worked into any supply strategy. Unsurprisingly, these retailers have reinstated these policies, and with the boom in e-commerce to stay competitive, they’ve come back with tighter restrictions and tougher penalties.
For example, Walmart will be reviewing shelf space more frequently, and those vendors who are often out-of-stock could lose their space. The company released a statement in answer to these changes saying, “The customer is at the center of everything we do and one of the best ways we can help them save time and money is by having the products they want, when they want them. We appreciate our suppliers and the work they are doing to help ensure their products move efficiently through the supply chain to our stores — and ultimately to more of our customers.”
While that’s all well and good, some of these fees and fines can be upwards of 12% of the amount they bill and several sellers have said that on some invoices, they’ve paid more in fines than they’ve made on their goods. This could break smaller companies.
So it’s more important than ever to ensure that you have an experienced logistics provider who not only understands how to navigate the current supply chain landscape, but has the resources available to do so. Argents is the one that can keep you moving and on time. We understand these issues and have expert and experienced staff who will care for your cargo and your business as if it’s our own, because it is. Reach out to see how we can help today.