What are Walmart deductions?
Put simply, a deduction is a fee or chargeback issued by Walmart against a supplier's invoices. Suppliers invoice Walmart for products that Walmart has purchased, and have a reasonable expectation that these invoices will be paid — in full.
In reality, this is rarely the case. Walmart assesses fines, or chargebacks, on almost every invoice that they receive from their suppliers. These fines can be related to:
- On-Time and InFull (OTIF) exceptions
- Supplier Quality Excellence Program (SQEP) noncompliance
- ASN errors
- Package labeling requirements
- Various other reasons
Disputing Deductions
Unfortunately, the burden of proof is on the supplier to dispute that certain chargebacks were taken incorrectly. This process often involves the very time-consuming tasks such as gathering documentation from internal sources and third parties — freight carriers, 3PLs, etc.
It often requires many hours of your team's time to research each dispute individually, gather the appropriate documentation, and submit the proper documentation — one dispute at a time!
Automated Solutions
Fortunately, there are some big brains out there who have developed an automated, cloud-based solution for disputing Walmart deductions.
Our favorite tool that we use for our clients is SupplyPike's Deduction Navigator application. This application largely automates the time-consuming task of researching individual Walmart deductions and gathering the appropriate documentation necessary to dispute the deductions and recover your money.
Scheduling a tour
Schedule a free tour to learn more about the features and benefits of Deduction Navigator. The tour can even display your company's actual invoice and deduction data to help you visualize the full capabilities of this powerful application.
More from Walmart Supplier Blog
Walmart suppliers need to understand the most important metrics that Walmart uses to determine the performance of your account. The Supplier Performance Scorecard is a "same page thinking" document that provides this insight.
Learn how to download an up-to-date list of all Walmart Stores in the United States and the Distribution Centers that each store is aligned with.