Best Buy Shipping Compliance: Ship It Right

In this article, learn about: 

• Best Buy’s Ship It Right program and supplier scorecards 

• Common penalties in the Ship It Right program 

• How to dispute deductions in the vendor portal  

With more than 1,000 stores across the U.S. and Canada, Best Buy operates at a massive scale—moving everything from flat screen TVs and smart home devices to small tech accessories and gaming consoles.  

For suppliers, the scale brings opportunity—but also risk. Compliance with Best Buy’s Ship It Right (SIR) program is non-negotiable. Those that fail to meet shipping, packaging, and routing standards can expect deductions that cut into profitability. This guide walks through Best Buy’s compliance program so suppliers can protect margins and strengthen partnerships.  

Understanding Best Buy’s Ship It Right (SIR) Program 

Best Buy’s Ship It Right (SIR) program is the cornerstone of its supplier compliance strategy. The program evaluates supplier performance in the following key areas: 

• On-Time Delivery (OTD): Product arrives at the distribution center or store within the scheduled time. 

• Fill Rate: Product are shipped in full against the purchase order (PO). 

• ASN Accuracy: Advanced Shipping Notices are timely and accurate. 

• Packaging and Labeling: Boxes, pallets, and barcodes follow Best Buy’s specifications. 

• PO Modify Percentage: Rate of purchase order changes after issuance that affects shipments. 

• Auto Cancellation: Purchase orders canceled automatically due to noncompliance or not being fulfilled on time. 

• Early/Late: Scheduled shipment either arrives before the scheduled time or after the scheduled time. 

• Unscheduled PO Count: Purchase orders that are shipped without scheduled appointments or approved ETAs. 

• No Show Count: A scheduled carrier fails to appear for a scheduled delivery. 

Accepting a Best Buy PO means agreeing to SIR’s requirements. The program assigns suppliers a scorecard. Low scores can trigger increased oversight, financial penalties, and jeopardize the supplier-retailer relationship. High scores demonstrate reliability and often lead to stronger long-term opportunities with Best Buy. 

Suppliers receive SIR reports every Tuesday by 5pm CST through Best Buy’s vendor portal, showing rolling data and monthly deduction details.  

Related Reading: OTIF Best Practices 

Shipping and Routing Guides 

Best Buy has several inbound shipping and routing guides, depending on the items shipped, the destination, and the program. Some of the crucial guides include: 

• RDC/DDC Inbound Shipping Guide: This guide covers requirements for regional distribution centers and delivery distribution centers. Suppliers can find information regarding scheduling, appointments, carrier access, and document requirements. 

• GNFR Routing, Shipping, and Labeling Guide: General Non-Functioning Retail is for non-merchandise shipments. Suppliers can find information regarding labeling, routing, and packing list instructions. 

• Direct-to-Store/DTS Shipping Guide: This guide provides guidance for suppliers who are bypassing distribution centers and shipping directly to the Best Buy Store locations.  

• Vendor Direct Import Routing and Shipping Guide: This guide is for import shipments with direct routing. Includes international compliance guidelines, necessary documentation, as well as freight partner expectations. This guide can be accessed through the Best Buy Partner Portal. 

Each guide outlines the “must dos” for appointments, packing specifications, pallet requirements, and documentation. The supplier is responsible for checking for updates as Best Buy reserves the right to revise guides at any time. 

Shipping and Transportation Requirements 

Suppliers shipping to Best Buy must adhere to SIR logistics requirements. Some of the most important provisions include: 

• Carrier Selection: Suppliers should only use Best Buy’s approved carriers. Using unauthorized carriers almost always result in deductions.  

• Appointments: Deliveries require scheduled dock appointments to ensure the supply chain flows smoothly. Requests must be scheduled by 2pm CST the prior business day through Best Buy’s system. Late arrivals, no shows, or unscheduled loads are flagged in SIR for review. 

• Freight Terms: Suppliers should verify whether they are shipping collect or prepaid and follow the correct booking process.  

• OTIF Standards: Best Buy expects on-time and in-full shipments. Partial shipments or split POs are discouraged.  

• ASNs: The ASN must be transmitted before the shipment arrives at the DC, with accurate carton and item data. 

Maintaining Best Buy OTIF compliance—on time and in full—is critical to supplier reliability. 

Pro Tip: Suppliers who integrate a Transportation Management System (TMS) often find it easier to stay complaint, as these systems automate routing and appointment scheduling.  

Packaging and Labeling  

Packaging non-compliance is one of the top drivers of deductions. Best Buy requires: 

• Packing Lists: One per PO, printed, enclosed in a pouch on the last pallet loaded and outside of the carton marked ‘Packing List Enclosed.’ 

• Carton construction: Cartons must meet strength and dimension guidelines to withstand DC and store handling. Cartons must meet ISTA guidelines. 

• Pallet standards: Pallets should be 40” x 48”, built no higher than 60”, shrink-wrapped, and clearly labeled (pallet X of Y). 

• Label placement: GS1-128 shipping labels should be affixed to the lower right corner of adjacent sides, scannable at the dock. 

• Inner pack requirements: If items are shipped in inner packs, they must be labeled with scannable UPCs.  

• Sustainability: Best Buy prioritizes recycling and reduced excess packaging. Suppliers should avoid excess void fill as well as oversized boxes.  

• Special labels: Some programs require colored labels or additional markings per PO instructions (such as fixtures, projects, and kits). 

Printed packing lists must accompany all shipments to Best Buy stores. Handwritten packing lists are considered noncompliant.  

Suppliers that fail to follow Best Buy shipping standards often face labeling or carton violations. 

Common Deductions 

Common Best Buy deductions stem from missed appointments, ASN errors, or packaging violations. Best Buy enforces compliance through financial penalties. Common deductions include: 

Actual deduction amounts will vary; suppliers should always double check the Best Buy Routing Guide for current fees. 

Related Reading: Trade Deductions and Chargebacks 

How to Dispute Deductions with Best Buy 

Deductions happen—even for compliant suppliers with great systems in place. Best Buy allows suppliers to dispute chargebacks via the Best Buy Vendor Portal.  

Here are the steps to dispute: 

1. Review deduction details: Access the invoice and/or documentation within the Vendor Portal. 

2. Collect Documentation: Provide as much proof as possible such as signed BOL’s, ASN transmission logs, and photos of compliant packaging and labeling.  

3. Submit dispute: File the dispute within the Best Buy Vendor Portal, attaching all relevant evidence.  

4. Track resolution: Best Buy typically reviews disputes within 30 days. Suppliers should monitor the portal for any updates.  

Proactive documentation and operations are key. Suppliers that track compliance internally tend to win more disputes.  

Best Practices to Stay Compliant with Best Buy 

Staying aligned with Best Buy’s SIR program requires discipline. Suppliers should stay wise to: 

• Train Teams: Ensure warehouse and logistics staff understand standards and are familiar with Best Buy’s Routing Guide.  

• Audit Shipments: Spot-checking labels, pallets, and ASN’s before shipping will help to catch any issues before shipment.  

• Use Technology: Leverage EDI, TMS, and compliance dashboards to minimize errors.  

• Monitor the Scorecard: By reviewing the SIR score regularly, suppliers can correct any concerning trends early.  

• Establish an Escalation Plan: Internal processes to quickly resolve missed ASNS, delays, or labeling issues can cut down on wasted time and money.  

For Suppliers, Best Buy offers a valuable channel—but only for those who can deliver with compliance. The SIR program measures and enforces supplier reliability at every stage from routing and packaging to ASNs and OTIF performance.  

By learning Best Buy’s requirements, preparing your team, and leveraging technology suppliers can minimize deductions, protect margins, and build a strong relationship.  

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