What is mabd in retail shipping?
Suppliers working with today’s largest retailers are required to comply with strict delivery and compliance regulations, with one of the most common being the Must Arrive by Date (MABD) delivery window. Retailers have implemented these strict delivery windows in order to increase efficiency in their warehouse or distribution center operations while maximizing product availability and scheduling discipline.
what exactly is "mabd"?
MABD stands for “Must Arrive by Date.” A MABD sets a strict delivery window for when a shipment must arrive at its destination. Failure to comply and/or hit the required window can result in a significant penalty or charge back. Large retailers demand high levels of accuracy and compliance to ensure products are available and on the shelf for consumer purchases.
The MABD window is determined by the day the product is expected into the distribution center with most windows detailing a two to three day time frame. It’s not just about being on time - delivering a shipment early or late is not viewed as a success. Retailers also have high expectations with order integrity, meaning the order is delivered complete and without any exceptions. If a shipment does not arrive complete and intact during the required delivery window, the supplier may be charged a penalty, which is generally a percentage of the invoiced dollar amount.
Why are retailers using MABD delivery windows?
Another reason why retailers have implemented the MABD window is to minimize unnecessary inventory levels and costs while ensuring product availability. Due to high customer expectations and demand, products need to be delivered on time, so that retailers can get the product on the shelf as fast as possible.
IS LTL SHIPPING A GOOD FIT FOR RETAIL?
LTL shipping is an efficient and cost effective option for shippers looking to transport their goods to retailers. LTL shipping is scalable and flexible for any size business or company looking to expand into the retail sector.
Where can I find a carrier that can help me meet MABD requirements?
Partnering with an approved or preferred carrier that has experience shipping to big box retailers will help your business thrive and maintain a high ranking on your vendor scorecard. Roadrunner Freight has extensive experience with many of the largest retailers in the country.