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Get It Right or Pay Up: Retailers Punish Vendor Missteps
- Less-than-perfect deliveries cause fines or delayed payments
- Sellers are squeezed: ‘You can freaking bankrupt your company’
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Large retailers grappling with supply-chain snarls, inflation and increased automation are cracking down on orders from their vendors.
Stores such as Walmart Inc. and Target Corp. have long fined suppliers that fail to deliver products on time, in the right amount or with the correct specifications. But after the pandemic allowed for some leeway, US retailers are now coming back with tougher standards and tightening expectations on how goods are received.