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Execution quality and chargeback penalties in retail supply chains
Journal of Operations Management ( IF 6.5 ) Pub Date : 2020-05-04 , DOI: 10.1002/joom.1092
Nathan Craig 1 , Nicole DeHoratius 2 , Diego Klabjan 3
Affiliation  

Retailers procure inventory by placing purchase orders (POs) with suppliers. POs specify product price, quantity, quality, delivery times, and other aspects of the fulfillment process, such as carton labeling requirements and packaging formats. When servicing an order, a supplier may fail to meet the fulfillment terms, thus committing a fulfillment error and triggering a chargeback penalty. We collect supplier compliance manuals from 111 retailers to characterize fulfillment errors and chargebacks in practice. The majority of chargeback penalties listed by retailers pertain to execution quality: aspects of the fulfillment process beyond product price, quantity, quality, and delivery time. We use an empirically grounded analytical model in combination with game‐theoretic analysis to demonstrate that the chargebacks most commonly used in practice do a poor job coordinating supply chains around execution quality.

中文翻译:

零售供应链中的执行质量和拒付罚款

零售商通过与供应商下订单来采购库存。PO会指定产品价格,数量,质量,交货时间以及履行过程的其他方面,例如纸箱标签要求和包装格式。在为订单提供服务时,供应商可能无法满足履行条款,从而犯下履行错误并触发拒付罚金。我们从111家零售商处收集供应商合规手册,以在实践中确定履约错误和拒付的特征。零售商列出的大部分拒付罚款与执行质量有关:除了产品价格,数量,质量和交货时间以外,履行过程的各个方面。我们将基于经验的分析模型与博弈论分析结合使用,以证明实践中最常用的拒付在协调执行质量周围的供应链方面做得不好。
更新日期:2020-05-04
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