Distributor Dialogue

Communicating With Your Distributors Electronically-It's Easier Than You Think

By Rick Bushnell
President Quad II Consulting

Problem: An executive with a pet product distribution company kept getting complaints from the receiving department. The supervisor said that frequently items were received that did not carry labels with the correct product description, bar code (14 digit GTIN) and/or the purchase order number. They also said that frequently they scan the bar code but it shows up as "item not on file".

This company was also getting complaints from people cycle counting inventory. They said that often the bar code numbers were not on file or other information was missing. After some research the executive found that frequently the product item records in the computer were incomplete or contained inaccurate information. Was it a maintenance problem? This executive found that staff entered every scrap of information available from the suppliers. The problem was getting all the information in a form that could be uploaded electronically to eliminate errors.

This is costing us a lot of money and a lot of wasted time," said the executive. "Receiving takes longer and that delays time to stock (a customer service problem). It also delays payments. Our buyers have to make dozens of phone calls to find the person in a supplier company who can get the correct information. Then that person has to dig around in the supplier's company to get the information. Finally, we need to input the information into the computer and too often that involves key entry and the possibility of input errors. We need suppliers to label properly and to send us complete and accurate item information electronically."

Solution: Use the PIDA/APPMA standard labels and recommended Item Record File. Click here to go to the Pet Industry Guidelines for Product ID, Labels and Shipments. You can also use the menu on the left of that page to dig more deeply into the use of standards in our supply chain. See the attached information on Labeling and Item Records.