With a shortage of delivery capacity in the US, more retailers are charging fees to suppliers for late delivery of products.
Kroeger is the latest to penalize suppliers with a $500 fee for deliveries arriving more than two days late. Earlier in the year, Walmart had implemented a similar policy.
Kroeger claims it loses up to 10% of sales due to products out of stock because of late supplier deliveries, spoilage and other supply chain problems or inefficiencies.
There’s a blockchain for that
This could create increased incentives for development of new technologies such as blockchain to reduce costs, increase efficiencies and make a positive impact on the bottom line.
Blockchain technology is being actively tested and used in banking and now in the airlines, shipping and logistics industries.
Blockchain can use smart contracts to simplify agreements, guarantee conditions, monitor inventories and track shipping quickly and easily. Payments, charges and settlements are faster and generally less expensive as well, adding to the appeal of blockchain technology.
Read more about logistics challenges at FreightWaves.com.