In this case study, our customer was experiencing invoice deductions totaling several thousands of dollars quarterly for delivery non-compliance. These deductions were putting a once profitable and long standing customer into jeopardy as each month passed by. What also was curious was the fact that our customer didn’t feel that these deductions were warranted as nothing had changed and that these were not previously occurring.
In reviewing the deductions further a decision was made to identify the root cause and reduce retailer chargebacks to retain this long standing business. We were able to strengthen the relationship and deposit the thousands of lost profit dollars that were being taken back by the retailer for non-compliance back to our customer.
Several factors played a part in these charge-backs with the following issues that were identified as recurring:
• Use of Non-Approved Carriers
• Improper Scheduling of Delivery Appointments
• Missed Delivery Appointments
Ultimately it was determined that delivery requirements had changed externally but were not known to our customer. Continental Logistics was aware of this grocery retailers requirements and was able to reduce retailer chargebacks. We instituted the necessary transportation management to circumvent these issues from recurring. This customer is now back in a much better standing overall, with profit dollars to show for the alterations being made.