Merchandise suppliers explain what information is required to quickly and efficiently identify the specific reason for a deduction and determine its validity.
An ongoing concern in the merchandise supplier community is the lack of information that accompanies deduction claims from retailers. The supplier typically receives a short description or code with a check remittance. However, this information is often vague or insufficient for researching the root cause of the deduction or even understanding the exact nature of the claim.
If the claim is valid, the supplier can quickly address the issue instead of searching for information (as claims are generated in the first place to get the attention of the supplier). This reduces the risk of additional noncompliant shipments leaving the supplier’s facility. Should a deeper conversation need to take place with the retailer regarding the root cause of certain claims, that can occur without the minutia and delays caused by missing information. If the claim is invalid, the supplier can provide the retailer with the appropriate documentation to dispute the deduction within the window specified by the retailer for resolving such issues. Deduction claims generated in error can then be resolved amicably.