Comments on: Post Holiday Rush Part 2, The Supplier’s Story http://blogs.inovis.com/2008/01/28/post-holiday-rush-part-2-the-suppliers-story/ Power Profitable Business Communities™ Fri, 12 Mar 2010 23:00:08 +0000 http://wordpress.com/ hourly 1 By: Doug Kern http://blogs.inovis.com/2008/01/28/post-holiday-rush-part-2-the-suppliers-story/#comment-1324 Doug Kern Wed, 25 Jun 2008 03:26:56 +0000 http://inovis.wordpress.com/?p=402#comment-1324 For chargebacks involving 3PLs, it's best to "follow the money." If you pay the 3PL (and it sounds like you do), then you should cross charge the chargebacks to the 3PL. The most common preventable chargeback reason codes, such as late/missing ASNs or routing violations, should be well under the control of the 3PL. In a perfect world, a 3PL will actively work to understand the nuances of retailer compliance guides and routing guides to avoid preventable data-related chargebacks. But the reality is that most 3PLs don't closely track compliance changes and aren't in a financial position to absorb all the chargebacks they cause. And as you likely know, it's critical that the service levels provided by your 3PL meet or exceed the compliance guidelines from your customer. Otherwise, you're stuck in a no-man's-land with chargebacks coming your way and no recourse to the 3PL. For chargebacks involving 3PLs, it’s best to “follow the money.”

If you pay the 3PL (and it sounds like you do), then you should cross charge the chargebacks to the 3PL. The most common preventable chargeback reason codes, such as late/missing ASNs or routing violations, should be well under the control of the 3PL.

In a perfect world, a 3PL will actively work to understand the nuances of retailer compliance guides and routing guides to avoid preventable data-related chargebacks.

But the reality is that most 3PLs don’t closely track compliance changes and aren’t in a financial position to absorb all the chargebacks they cause.

And as you likely know, it’s critical that the service levels provided by your 3PL meet or exceed the compliance guidelines from your customer. Otherwise, you’re stuck in a no-man’s-land with chargebacks coming your way and no recourse to the 3PL.

]]> By: Shirley.Hammock http://blogs.inovis.com/2008/01/28/post-holiday-rush-part-2-the-suppliers-story/#comment-1311 Shirley.Hammock Fri, 20 Jun 2008 17:00:19 +0000 http://inovis.wordpress.com/?p=402#comment-1311 We are now outsourcing some of our product to a 3PL. What are best practices for the chargebacks that are incurred from the 3PL? Are the 3PL responsible for investigation and documentation for disputing the claims? If the claims are valid is the 3PL liable for the total charges or does the parent share in the cost? Since the parent company is getting the deductions from their invoices do they automatically cross charge the 3PL. Would like to know how other companies are handling their charges incurred by the 3PL's. We are now outsourcing some of our product to a 3PL. What are best practices for the chargebacks that are incurred from the 3PL? Are the 3PL responsible for investigation and documentation for disputing the claims? If the claims are valid is the 3PL liable for the total charges or does the parent share in the cost? Since the parent company is getting the deductions from their invoices do they automatically cross charge the 3PL.
Would like to know how other companies are handling their charges incurred by the 3PL’s.

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