EXPECT FINES ON DELIVERIES. IT CAN AFFECT YOUR PAY.
December 01, 2017
In August of this year, Wal-Mart Stores Inc. implemented a program called “On-Time, In Full”. This program will charge suppliers a monthly fine of 3% for any delivery that does not arrive on time, even if it arrives early. Kroger Co. has followed the steps of Wal-Mart Stores Inc., which will instead be fining supplier $500 for each delivery that is late two days or more.
Although it is believed that only a few companies have started this to use new system, many other retailers may follow along as it is broadcasted to increase Wal-Mart Stores Inc. revenue by $1 billion. Kroger Co. has the same idea in mind.
You might be asking yourself, how does this affect me? Well it may affect you more than you expected it to. By having these fines on place, any shipment that arrives early, late, or missing in any part, will be fined. This fine will cost the suppliers money, which in result will affect the pay of truck drivers.
According to Wal-Mart Stores Inc., they will not tolerate any dispute regarding the new program. It is speculated that any condition out of the truck driver’s reach, such as bad weather, technology malfunctions, or regulation issues, will not be accepted and will be subject to the fine. Yet fulfilling these demanding orders as a faster rate and at a nationwide level is a current challenge to suppliers. Not only is it a challenge, it is costly with perishable goods, where cold storage and a refrigerated trailer is needed.
Unfortunately, this is a nationwide issue that will affect all truck drivers in the United States who are hauling for any of these companies. With Amazon being one of the top leaders in the retail industry, it is pushing competitors to get creative and find other means to receive income.
Next time you pick up a load, make sure that you are prepared in order to deliver that load on time and not be subject to a fine. Are you pick-up or delivering in California? Make sure your equipment is compliant and is registered with the correct State program. If you deliver refrigerated loads, contact us now for free consultation over the phone. We offer free on-site revisions for refrigerated equipment. Don’t get denied a load due to paperwork.