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11 Tactics to Avoid Retail Chargebacks | LoadProof

 


What are chargebacks?

Chargebacks are fines that retailers impose on suppliers because the Retailers are doing extra work to process the Supplier’s product through the Retailer’s Supply Chain.

Why are suppliers getting chargebacks?

  • Because Supplier’s shipments are not fully in compliance with the requirements set by the retailers on how the shipments should be arriving at the Retailer’s distribution center
  • If a supplier is not fully following the compliance requirements, then that needs to be addressed first. So dedicate a person to this activity, there are people called Compliance specialists available that know how to get this right, they have a lot of experience working with specific retailers or you will have to review the routing guide. However a very good chargeback system will show your people the mistakes being made
  • If you are doing everything correctly, then still getting chargebacks, then the chargeback management system will absolutely help you
    • Are you including all the documentation? Packing slip, Shipping Label, Retailer label, BOL or Manifest, Invoice, Is your product in a good condition? Are you using correct box dims? Are you shrink wrapping as per the spec? White color/Black color/transparent – are you using the correct shrink wrapping?
    • Are you floor loading or building pallets?
    • If building pallets, are you building to the right height?
    • Are you using CHEP pallets?
    • Is your trucking company making on time deliveries?
    • On date deliveries? Or Are they missing?
  • If you do any of the above and if you are not sure if you are in compliant with the routing guide issued by the retailer, then you would get a chargeback.

What is the best way to eliminate chargebacks?

The best way to eliminate chargebacks is to show that the shipment or load left your facility in perfect shape through pictures. When you show pictures, the person on the retailer end thoroughly sees everything and has proof to check on their side for any issues, because the big retailers often pay for transportation.

What could have happened to the shipment/Load? Everything was fine when you shipped it, but it arrived damaged or it arrived with issues at the retailer facility, how did that happen?

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