Explainer: Responsibility for the Right Destination

Getting the destination right is absolutely a matter of getting the ship-to address correct. Whether conveying goods for use or for sale, ensuring that the destination address is accurate, and clearly marked on the shipping container is something that the shipper needs to make certain. But is the shipper responsible for the reliability of the destination address when it did not originate with them?

For retail vendors in B2B relationships with retailers, the X12-EDI816 (Organizational Relationships) transaction provides the retailer’s ship-to locations (distribution centers, stores), with site information (identifiers, addresses, contacts), and usually other information like store open and close dates. Vendors should ensure that they receive this transaction regularly (as often as the retailer provides it) and update their operations and logistics systems with any changes.

Related: The Perfect Order: Right Destination

Vendors should be using store opening dates to work with their retailer buyers on establishing marketing promotions of their products to help the retailer get shoppers into those new stores in the early opening days. This is a great—and proactive—way for brands to build closer relationships with their retailer customers as well as to get their products into the hands of consumers. Will new stores represent an increase in orders? The X12-EDI816 might be a predictor of that too, so vendors may need to do more than just look at this EDI transaction from just the perspective of one that requires an update to the retailer’s record in the ERP system.

Retailers change the alignment of stores and distribution centers as new facilities open and close. Inclement weather may temporarily necessitate shipments to a distribution center be redirected to another; this information will be messaged to vendors via the X12-EDI864 text message transaction, via email notification, or posted on the retailer’s vendor compliance portal. Retail vendors and their distribution partners need to be aware of these potential changes and make the necessary—even if temporary—software system adjustments.

For retail vendors in B2C relationships with retailers, consumer ship-to addresses will be embedded in the X12-EDI850 Purchase Orders. These addresses will be as the consumer provided to the retailer. Can the vendor be certain that the retailer checked that the address was a qualified U.S. Postal Service delivery address, and gave the consumer the opportunity to confirm the address (e.g., ensure no data entry errors) before committing the online order? The answer is no, but the assumption is yes. And because it is not the vendor’s responsibility to question the consumer’s delivery location in the retailer’s purchase order, the retail vendor accepts the consumer’s ship-to address as-is.

For direct-to-consumer (D2C) sellers, your online stores should be checking consumer addresses and giving your shoppers the chance to confirm their entries before placing their orders. This shifts some of the burden of responsibility to the consumer to enter the correct destination information and gives them a chance to review and correct before placing the order.

With the right destination information acquired, ensuring that the goods are conveyed to the right destination becomes more of a matter of making certain that the right destination information is passed along accurately and clearly displayed when printed.

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