Why Retailers Hesitate Onboarding New Brands and How “Invoi” Can Bridge the Gap
How to get your product shelf space in large retail chains
With the influx of new products and brands constantly vying for shelf space, why do retailers often hesitate to bring new vendors into the fold? In the fast-paced world of retail, efficiency is paramount. Retailers are constantly seeking ways to streamline operations and reduce overhead. One area that often poses challenges is the onboarding of new vendors. Continue reading to learn more.
The Hurdles of New Vendor Onboarding
- Additional Processing Needs:
Every new vendor brings with it a unique set of processes. From order placements to delivery schedules and payment terms, integrating a new vendor means adapting to their specific operational requirements. This can strain the retailer’s existing systems and require additional resources to manage.
- Account Management Complexity:
New vendors mean new accounts to manage. This includes tracking orders, payments, credits, and more. For retailers, especially those with limited administrative resources, this can be a daunting task.
- Multiple Vendor Numbers to Manage
National retail chains manage a large network that spans thousands of stores and encompasses even more vendors. Imagine the mammoth task they face when onboarding new brands. Instead of the ideal situation where, for instance, National Retailer X would make payments to just ‘Vendor 123’ for every product supplied by ‘New Brand ABC’ across the country, they find themselves juggling payments to hundreds, if not thousands, of vendor numbers for the same product line. The crux of the matter is simplicity and centralization. The fewer vendor numbers a retailer needs to track and pay per brand, the easier it is for them. Any perceived complexity in the billing and payment process can deter these retailers from embracing a new brand. For new brands to be successful in breaking into these retail giants, a seamless invoicing and payment process is not just preferred—it’s paramount.
- Invoicing Compatibility:
Perhaps the most significant challenge is the lack of a standardized invoicing system. Without an invoicing system that aligns with the retailer’s existing infrastructure, the retailer simply won’t onboard a new brand because of the strain it puts on their operations.
Introducing Invoi by Tactiq
Recognizing these challenges, we’ve developed Invoi—a revolutionary invoicing solution designed to bridge the gap between new brands and retailers.
Key Features and Benefits of Invoi
Single Vendor Number That Consolidates Your Invoices:
Invoi assigns a single vendor number to brands, which can be used nationally across any retail chain. With a single vendor number, invoices are consolidated across the retail chain, making it easier for retailers to manage payments for a new account. With a simplified payments process, retailers are more likely to give new brands shelf space in their stores.
Invoi is designed to integrate seamlessly with a wide range of retail management systems. This ensures that no matter the retailer’s existing infrastructure, Invoi can fit right in.
Automated Account Management:
Make your retailers happy with an easy invoicing process, maintain a standardized price book across retailers, extend your reach by getting into more stores, and get paid in a timely manner.
In combination with our automation software and experienced billing team, we simplify pricing structures for accurate invoicing, implement quality control checks for error prevention, and leverage our proprietary validation technology to eliminate payment errors and optimize payment workflows.
Scalable for Growth:
Whether you’re a new brand looking to break into the retail market or an established brand aiming to expand, Invoi is scalable to meet your needs.
So How Does It Work?
- Scenario: When New Brand ABC approaches a national retailer to sell its product, the retailer will inquire about the distribution and payments process.
- Invoi’s Role: New Brand ABC, armed with Tactiq’s Invoi technology, can assure the retailer of efficient direct store delivery distribution to each of their stores. With just one vendor number, the retailer can be confident in a streamlined and simple payments process from day one.
- Payment Process: New Brand ABC delivers their products to stores and submits their invoices through Invoi. Invoi consolidates the invoices into a single EDI transmission and sends it to the retailer. Once the retailer pays, Invoi collects the payment and then transfers the funds to New Brand ABC or their distributors.
The retail landscape is competitive, and for new brands, breaking into established retail chains can be challenging. However, with solutions like Invoi, the process becomes simpler, more efficient, and mutually beneficial for both vendors and retailers. By addressing the core challenges with new vendor onboarding, Invoi by Tactiq paves the way for a more collaborative and prosperous retail operation.