In this article, learn about:
What a Failure to Combine Loads post audit claim is
How to read and interpret the claim explanation for Failure to Combine Loads
How to prevent and dispute this post audit claim
What Are “Failure to Combine Loads” Claims?
Post audit claims for Failure to Combine Loads occur when a single purchase order is split between multiple trucks.
This can happen when a supplier removes a purchase order from a truck, resulting in the logistics company dispatching another truck to cover the shipment. Additionally, a large product shortage can occasionally be listed under this claim type in a post audit. Collect suppliers in particular might see this claim, especially if their loads aren’t being utilized properly.
“Failure to Combine Loads” Post Audit Claim Packet Explanation
Below is an example of what a claim explanation for a Failure to Combine Loads might look like:
In the first paragraph, the claim explanation shows what triggered the post audit: Walmart paid for freight it considered unnecessary, as loads were not properly combined before shipping. Since suppliers deal directly with the less-than-truckload carriers, Walmart puts the responsibility for combining loads on them.
The second paragraph explains how this issue might be avoided. Walmart requires that loads going to multiple destinations, but coming from a single distribution center, must have a one master bill of lading, duplicated for each destination. Additionally, that bill of lading must have certain information within it, including:
Total number of cartons
Total number of pallets/slips
Volume by purchase order
Weight by purchase order
These metrics help Walmart determine if loads are combined properly and are thus in compliance.
How to Prevent Failure to Combine Loads Claims
There are a few ways to help prevent Failure to Combine Loads post audit claims:
Proper Load Calculations
Make sure to double-check your logistics provider’s work, particularly whether they’re utilizing the entire truck when assigning the loads. If your logistics provider fails to properly combine loads without your knowledge, you can still be held liable for these freight charges in a post audit, as Walmart considered the supplier to be ultimately responsible for properly packing loads.
If there’s an issue with combining loads, you might have to ask Walmart to rebuild the load with the proper purchase orders attached to it. Being proactive about making sure your trucks are being utilized efficiently is important.
Ensure that you properly calculate your product weight, as well as TI/HI.
TI/HI is a common term in the logistics industry, and it is used for determining the safest and most efficient stacking pattern for pallets. TI refers to the number of boxes on a particular layer of the pallet, while HI refers to the number of layers that can safely be stacked.
Your items might “cube out” first, or alternatively they might “weigh out” first. “Cube” refers to the maximum amount of volume that your boxes take up, while “weigh” refers to their weight. If a load “cubes out” first, then the volume of the load reaches its maximum before the truck reaches maximum weight. If a load “weighs out” first, then the truck reaches the maximum weight before maximum volume.
In either case, make sure that your load constraints are constructed to reflect the situation, either cubing out or weighing out.
Below is a visual representation of what an efficient TI/HI system might look like:
Check to make sure that your bills of lading (BOLs) are set up correctly.
If you are shipping multiple purchase orders, you should have a master BOL for the entire load, and smaller BOLs for each of the purchase orders included.
When creating your master BOL, make sure that you are checking the “master BOL” box on the form. If you skip this step, you could be hit with a post audit claim for failure to combine loads.
Better Email Communications with Walmart
Make sure that your email communications with Walmart and/or the third-party auditor use clear language and structure. Paying attention to the details of your communication strategy helps reduce avoidable errors stemming from miscommunications.
It’s a good idea to have a professional writer, if your organization employs one, review your emails, to make sure that your writing is as understandable and clear as possible.
Consider using bold formatting or CAPITALIZED TEXT for all essential information in your emails with Walmart, your buyer, and/or the third-party auditing firm, which will help important information stand out to anyone quickly skimming the emails.
Staff turnover is unavoidable, and it's inevitable that some of these employees will take important institutional knowledge with them, which can sometimes be invaluable in preventing or disputing a post audit claim. To help mitigate this impact, you can create a shared folder, such as in Google Drive or Microsoft OneDrive, for your team members to share their communications with Walmart, your buyer, and/or the auditing firm, as well as any essential documents. This will allow you to have access to your employees’ historical communications and knowledge after they depart.
Additionally, it’s often best practice to create a running log recording your interactions with retailers or buyers, in order to easily identify the date of important interactions if you later need to reference this information.
How to Dispute Failure to Combine Loads in a Post Audit
You can dispute all post audit claims with Walmart and/or the third-party auditor over email. Walmart requires supporting documentation for any of its claims to be successfully disputed, so make sure to include that documentation in your emails to the auditor.
Supporting documentation may include:
Written documents, including emails with the buyer, showing any conversation regarding load constraints and packing, as well as truck-related allowances applied to the purchase orders.
Any invoices (EDI 810) demonstrating the applicable allowances.
Communications from Walmart notifying you of any issues with packing and/or load constraints.
A copy of the purchase order maintenance email, if received.
EDI with SPS Commerce
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