What is the "Overage" Defect?
Walmart defines this defect as "The PO line shipped exceeds quantity ordered." Overages often are the result of or connected with other defects/chargebacks, and they are also often invalid.
For example, a short in one place can result in an overage somewhere else and vice versa. Furthermore, it is unlikely that suppliers will receive compensation for any merchandise received that exceeds the amount ordered.
When a supplier is hit with an overage, Walmart will sometimes send back the extra and charge the supplier for it. More often than not, Walmart will simply not pay for any cases beyond what they ordered. If Walmart does pay for it, it is often because it matches a PO that is short, or they are willing to take it because it matches a new invoice. If Walmart rejects the invoice, the supplier can succeed in recovering the overage value through the retailer's dispute process.
What's more, not every overage is listed as a SQEP defect or fine. There may be others out there that are worth billing Walmart for or, at least, following up on.
How to Prevent Valid "Overage" Defects
Some suppliers use different colored stickers on boxes to distinguish the POs that each corresponds to in attempt to avoid receiving errors. Another useful method for avoiding overages is by confirming correct fulfillment information flowing to the warehouse via EDI. Similarly, if item setup is correct, that will greatly improve chances of not receiving overages.
Can the "Overage" Defect be Disputed?
Yes, in HighRadius, just like all other compliance fine disputes at Walmart.
How to Dispute "Overage" Defects
By looking for shortages that match an overage, disputes can occasionally be done in tandem. Sometimes DSS data can be used to match up invalid overages as well. (For more on pulling DSS reports, see this webinar).
In order to successfully dispute an invalid overage, the supplier will need some or all of the following documents:
Number of Impacted Cases
Carrier Signed BOL / Shipment Confirmation
When filing a dispute, fill in the information for "Dispute Reason," "Amount to be Disputed," "Comments" (if applicable), and "Attachment" (for relevant documents).
More SQEP: Continued Learning and Our Solution
For an exhaustive resource on all things related to SQEP compliance, download our SQEP Handbook.
If you would like more insight into your SQEP performance and a way to quickly and painlessly dispute invalid SQEP fines, schedule a meeting with a member of the SupplyPike team today!
Written by The SupplyPike Team
About The SupplyPike Team
SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.Read More