Format:
Live Q&A with active audience participation

Check out the Full Length Interview by clicking here!

Featured Experts

Brad Martin
Director of Product, Retail Technology & Deduction Management Expert
Brad has over 20 years of experience in retail, spanning supplier team leadership, analytics, shelf automation, and deduction management at multiple companies. He’s passionate about solving deduction issues using advanced technology and product strategy.

Angie Gautney
Senior Dispute Specialist, Former Deduction Team Manager at Walmart
Angie spent more than two decades in accounts receivable and deduction dispute management, including managing Walmart’s dispute resolution team overseeing over 100 associates. She now applies her insider knowledge to help suppliers recover lost revenue and implement upstream fixes.

Q&A Interview

Q: Where should suppliers begin when diving into compliance for dispute management?
A: Start small. The deduction process can feel overwhelming, especially at large retailers like Walmart, where about 15 deduction codes make up 80% of total deductions. Focus on those first. Read your retailer’s documentation thoroughly. Target, for instance, excels in documenting expectations. Internally, assess how your organization stores shipping documents and EDI files, and create a centralized, cross-functional document management system. Quick wins can be achieved by analyzing historical deduction data and identifying repeat deduction types to focus recovery efforts.

Q: What are hidden challenges or common mistakes in deduction management?
A: One major challenge is the assumption that deduction notifications arrive in real time. They don’t always. Retailers may issue deductions months later, so it’s critical to maintain long-term, accessible documentation. Another common pitfall is missing information on bill of ladings (BOLs), such as purchase order numbers. Without a strong logistics document management process, you’ll struggle to match disputes to documentation, especially when different teams touch the shipping process. Also, watch your timeframes: some retailers allow 2 years for disputes; others just 30-60 days.

Q: What kind of data visibility and reporting help optimize deduction recovery?
A: Ideally, suppliers should unify claims, checks, disputes, and supporting data into one platform. Scorecards provided by retailers like Walmart and Target offer insights into match rates and monthly trends. These dashboards are essential for identifying compliance gaps and optimizing your dispute recovery workflow. Advanced deduction management software can preemptively identify pricing issues or mismatches before invoicing, which is especially useful because pricing errors are difficult to recover post-invoice.

Q: What should you do when documentation from the retailer is vague or unclear?
A: First, check if the claim code is available and try to reverse-engineer the issue. Most retailers have escalation processes, such as service desks or ticketing systems. If documentation from the retailer doesn’t clearly justify the deduction, escalate and ask for clarification. Lack of transparency may indicate the deduction isn’t valid.

Q: How often are deduction issues caused by poor shipping documents?
A: Often. But it’s not just about paperwork errors; it’s also about logistics execution. For example, similar-sized products in mixed boxes often lead to mis-scans during receiving. Some brands even use colored tape to help differentiate products in transit. So while having a clean BOL and manifest is critical, how the product is packed and labeled also plays a major role in minimizing deduction risks.

Q: Why are PODs and BOLs so critical to dispute resolution?
A: Because the majority of deductions, especially from top retailers like Walmart, require these documents. Walmart has published that 7 of their top 15 deduction types need PODs and BOLs. Without a centralized document repository, you waste time tracking paperwork and risk missing dispute deadlines. Carriers like UPS and FedEx may only retain proof-of-delivery for 90 days. If you’re not proactively storing them, you could lose recourse. Invest in logistics document management tools and automation for retrieval.

Q: What are best practices to ensure claims are properly disputed the first time?
A: Submit a fully documented, context-rich dispute the first time. This includes: BOLs, manifest, invoices, and any supporting email threads. Be specific. Explain discrepancies between POs and invoices or clarify shipping misapplications. For example, if two POs were delivered on the same truck but only one was shorted, show the full load context. The more clarity upfront, the better chance you have for a quick and full recovery.

Q: What is your workflow from identifying invalid deductions to submitting disputes and reconciling recoveries?
A: We start by reviewing all payments and deductions including the good, the bad, and the confusing. Prioritize based on dispute expiration windows. At Vendormint, we classify deductions into categories: pricing, returns/defectives, overages/shortages/damages (OS&D), compliance, contractual, and other. If we see recurring returns issues, we check contract alignment. Simultaneously, we monitor current claims to prevent future losses. In one case, we flagged an invoicing issue causing new deductions and fixed it before it became a bigger problem.

Q: What if a retailer keeps asking for a “correct” BOL, even when you’ve sent one?
A: Validate that you’re submitting both the master and supplemental BOLs, if required. Ensure there’s a carrier signature, not just the shipper’s. Confirm that all expected fields are present: PO number, PRO number, MABD date. If all documentation checks out and they still reject it, escalate and insist on clarity.

Q: What is Walmart’s Code 88, and why are suppliers seeing it more?
A: Code 88 is a Walmart-specific deduction code used to reverse previous payments made outside of allowed compliance timeframes (usually over 2 years old). It acts like a post-audit claim to recover overpayments. In some cases, it may also correct past errors in their system. Suppliers can request documentation and file re-disputes if they believe the reversal is incorrect.

Q: How should suppliers validate retailer returns?
A: Walmart’s new CARS system provides good return-level detail. Target also offers strong reporting. But always compare returns against item setup data, return contracts, and logistics processes. For example, overstacked pallets often damage bottom layers, triggering false defectives. Retail suppliers must ensure alignment between contracts, mod resets, and what’s actually returned. Vendormint even has a returns specialist for deep-dive analysis.

Q: What is Walmart’s archive schedule for NOVA and Appointment Scheduler?
A: Typically around 18 months. After that, data can be hard to retrieve. We recommend archiving all retailer documentation monthly or quarterly to maintain a backup. Supplier systems like EDI POs and ASNs also serve as useful permanent records.

Q: Can I recover signed PODs from FedEx when shipping to Walmart on their account?
A: Yes, but the process isn’t public and requires a specific form and team contact. Vendormint has done this successfully and can guide suppliers through the process. These PODs are often necessary for Walmart small parcel claims.

Q: What are the six chargeback categories used in deduction management services?
A:

1. Pricing – PO vs. invoice mismatches
2. Returns/Defectives – Customer/store returns and damages
3. OS&D – Overages, shortages, damages at receipt
4. Contractual – Allowances, compliance violations
5. Compliance – Programs like OTIF, late delivery
6. Other – Any deduction outside normal categories

Q: What about Walmart mass-disputing claims without supplier input?
A: If you see disputes uploaded by Walmart (often under a user ID starting with A0), that may be their algorithm auto-correcting previous deduction errors. If you notice partial payments or unclear credits, check for Code 13 substitutions in APDP. These indicate that part of your claim was offset against an overage elsewhere.

Q: How do you balance recovering past deductions with preventing future ones?
A: Start by handling claims nearing expiration. Simultaneously, fix root causes in pricing, invoicing, or compliance. Preventive actions may include correcting rounding errors or updating invoice templates. Long-term, this balance of recovery + prevention boosts margins and reduces deduction volume.

Q: How can brands ensure retailer agreements support margin protection?
A: Understand every element of your retail agreements. If you’re paying allowances for defectives or freight, make sure you aren’t still being deducted. Track cash discount timelines versus payment terms. In some cases, renegotiating an allowance may be more cost-effective than battling recurring chargebacks. Deduction management tools with compliance alignment analytics can help here.

Q: What hasn’t been covered that you feel suppliers must know?
A (Angie): Recovery is only half the battle. We aim to build long-term partnerships that help fix broken workflows, like invoicing or palletizing, so future deductions don’t happen. Sometimes, just adjusting pallet height fixes thousands in recurring claims. Understanding your logistics and item setup is key.

A (Brad): Many brands set dispute thresholds (e.g., don’t bother with claims under $100), but that’s dangerous. Retailers know your habits. A large number of small, unchallenged claims add up. Make sure your dispute thresholds are strategic, not just convenient.

Closing Thoughts:

Retail deduction management is complex but solvable with the right mix of strategy, visibility, and technology. Suppliers must embrace both proactive compliance alignment and rigorous deduction recovery practices. With improved document management, analytics, and dispute workflows, suppliers can reclaim lost revenue while optimizing their retail supply chain operations.

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