Consumer packaged goods (CPG) companies face millions of dollars in OTIF penalties, and because they have limited time and resources to refute them, they simply accept them as a cost of doing business.
The Challenge
In order to avoid costly penalties for transportation service exceptions, shippers need to conduct painstaking processes to pinpoint exactly why something happened and who was responsible and gather documentation to overturn the fines within the allotted time window. Until now, streamlining this process was impossible.
A top U.S. pet food shipper was getting hit by excessive retailer penalties and had to manually cross-check each fine with every shipment in its TMS. This process was costly and inaccurate – and it took longer than the allotted time windows to overturn the fines.
The Solution
Exception Workflow Uncovers Root Cause
The pet food manufacturer used ISO’s Exception Workflow to establish the root cause and responsible party for each and every service failure. Using the Bulk Search feature, deductions specialists were able to input every order or shipment ID with a fine associated and get a full report, verified by the carrier, of what actually happened.
Supporting documentation collected
The shipper was able to export a PDF, complete with required documentation such as a POD, for each exception that turned out to be unjust or at the fault of the retailer. Using this process, responding within a supplier portal within the 30-day window went from impossible to extremely effective.
The Results
$24k Petco
Overturned exceptions, resulting in a more trustworthy dataset
$70k Target
Fines recouped from unjust chargebacks
$100K+ total
Network-wide penalties recouped in one month using ISO data