Compliance FAQs
Today every major retailer in the world has compliance requirements. Designed to increase their own efficiency and improve customer service, the requirements are enforced with varying degrees of severity, from returning the merchandise to charging fees.
Here are the most commonly asked questions about meeting the compliance requirements of retailers.
1. What is Compliance Labeling?
It refers to bar code labeling requirements established by major retailers for their vendors and can apply to labels or tags placed on individual items and labels placed on boxes or pallets for shipping.
Compliance requirements apply to almost every aspect of a label from its shape, size, layout to the type of characters used, label content and the exact location of each piece of information depicted on the label.
2. What can happen if I am not "in compliance?"
- Retailers may fine you
- Your products may be rejected for sale
- You can experience delays in moving your products to the selling floor
3. What are the benefits of doing compliance?
They vary, depending upon who and where you are in the supply chain.
Vendors:
- Reduces operating costs
- Improves profits
- Improves tracking of product from raw material received through Work In Process to pick/pack/ship
- Eliminates packing/shipping errors
- Captures inventory data for manufacturing forecasts
- Accurate sales tracking
- Adds value to your product
- Speeds product flow and invoice payment
Retailer:
- Improves employee productivity
- Captures more accurate POS data to track inventory flow
- Identifies products for markdown
- Provides inventory counts
- Improves accuracy of automated stock replenishment
- Reduces the cost of item marking and space allocation in the distribution center
Consumer:
- Improves merchandise availability
- Speeds check-out process
- Provides accurate, detailed receipts
- Improves customer service
4. What is Electronic Data Interchange (EDI)?
Electronic Data Interchange refers to the ability of companies to exchange business information electronically. The information is transmitted in the form of machine-readable data, normally from one computer application directly to another. Purchase orders, invoices, advance ship notices and checks are just a few examples of the data that is often exchanged through EDI.
5. What is the benefit of EDI?
- Quicker order entry
- Fewer key entry errors
- Timely updates on consumer demand and purchasing trends
- Reduced transportation costs
- Reduced paper costs
6. How do I implement a compliance labeling program?
- Form a compliance labeling implementation team. Don't forget to include the following departments: Purchasing, MIS, Operations, and Sales
- Obtain detailed label specifications from your customers
- Contact UCC for a manufacturer ID number (if applicable)
at 937-435-3870 or visit their Web site at: www.uc-council.org
- Assign a UPC number to each item in your product line, if applicable.
- Call Paxar at 1-800-543-6650
7. Does Paxar provide a solution for compliance labeling?
We are the authority in designing and implementing successful compliance labeling initiatives for major retailers such as JC Penney, Federated Department Stores, Wal-Mart, and many others. Our ComplyLine Service allows vendors to download up-to-date retailer formats from the World Wide Web. Our ComplyLine Kits are a turnkey solution to get you printing labels and tags quickly.
