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© Supply Chain Visions 2004 – All Rights Reserved

upply

hain     isions®

V

Cost of Doing “Wrong”

Physical cost to fix the error

Labor cost for multiple shipments in backorder and additional freight

Providing replacement product

Refunding purchase price

Providing credit

Cost of processing additional receipts for multiple shipment

Penalties

Retail compliance fees come straight from profits

Lost revenue

Cost of lost sales

Cost of lost customers

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