In this article, learn about:
The definition of Freight Orders Not in Full
A breakdown of the post audit claim packet for Freight Orders Not in Full
Guidelines for preventing and disputing these post audit claims
____________________________________________________________________________________
What Are “Freight on Orders Not in Full" Claims?
Post audit claims for Freight on orders Not in Full occur when the supplier short ships products, meaning that their shipments to Walmart are arriving with fewer items than ordered or expected. Trucks that are not fully packed are less efficient, and therefore can lose Walmart money on freight charges, resulting in potential post audit claims.
As with all post audit claims, communication is key. If a supplier informs Walmart that they will need to short ship certain items, Walmart will have the opportunity to fill those trucks with other products, potentially heading off a future post audit claim.
“Freight on Orders Not in Full” Post Audit Claim Packet Explanation
Below is an example of what a claim explanation for a Freight on Orders Not in Full post audit might look like, as well as an overview of how to read and interpret the claim explanation:
The first sentence of the claim explanation shows how Walmart identified the issue in the post audit claim, by reviewing its payment system records and discovering that it had paid for freight for incomplete orders. The second sentence gives a few different reasons behind the discrepancy. Suppliers should be able to discover the reason behind the short shipping by reviewing their purchase orders and shipping records.
The next two sentences state Walmart’s expectations that all shipments should be shipped in full to Walmart’s facilities. If product availability is to blame for the short shipping, then the supplier should ship the remaining products prepaid. Finally, Walmart explains that the post audit claim is the result of these excess freight charges, with its purpose being to recover the revenue Walmart lost in paying freight for short-shipped product.
How to Prevent “Freight on Orders Not in Full” Claims
There are a few methods to help ensure that suppliers prevent short shipping as much as possible, and therefore reduce their liability in a post audit:
Ensuring Your Trucks Are Utilized Efficiently
The most reliable way to ensure that you aren’t short shipping products is to make sure that you’re fully communicating about shipments on your Walmart purchase orders. Your purchase orders should accurately reflect your shipping situation, and any changes to shipments should be communicated to Walmart and your buyer as soon as possible. That way, Walmart has the opportunity to fill the partially completed trucks, hopefully avoiding a potential post audit claim afterward.
Make sure that you double- check that your logistics provider is using the entire truck when they assign loads. If your provider is underutilizing the truck, then it won’t be packed as efficiently as it could be, and Walmart could issue a post audit claim to recover its lost revenue on freight charges.
If there is a discrepancy between your purchase orders and the truck setup, then you might have to contact Walmart or the third-party logistics provider and ask them to rebuild the truck with the purchase orders, as requested. Remember: building loads properly is as much the responsibility of the supplier as it the retailer.
Improving Your Email Correspondence
Make sure to maintain clarity and organization in your written correspondence with Walmart. Focusing on how you communicate can minimize misunderstandings and make your supplier agreements more comprehensible, thereby reducing post audit claims resulting from such miscommunications.
If your company has a professional writer on staff, such as a copywriter or content writer, consider having them review your correspondence to maximize the effectiveness of your writing.
Consider using bold formatting or UPPERCASE TEXT to highlight critical information in your emails to Walmart, buyers, and third-party auditing firms. This approach makes key details more visible to recipients who may be quickly scanning through messages.
Employee turnover is unavoidable, and departing staff members inevitably take valuable institutional knowledge with them. This expertise can be crucial for preventing or challenging post audit claims. To mitigate this loss, consider establishing a centralized repository, such as Google Drive or Microsoft OneDrive, for your team. This allows staff to archive their correspondence and important documents, ensuring continued access to historical communications and expertise even after personnel changes.
How to Dispute “Freight on Orders Not in Full” in a Post Audit
All post audit claims can be disputed through email with Walmart and/or the third-party auditing firm. Walmart mandates that supporting documentation be provided for any successful claim dispute, so be certain to attach any evidence to challenge the claims to your emails sent to the auditor.
Required supporting evidence may include:
Any written records, including buyer correspondence, showing discussions about trucks ordered and any truck-related allowances on the purchase orders.
Any invoices (EDI 810) that verify the relevant allowances.
Correspondence from Walmart informing you about any short shipments and/or truck utilization.
A copy of the purchase order maintenance email, if you received one.
Related Reading: How to Dispute Walmart OTIF Chargebacks
EDI with SPS Commerce
Are Walmart deductions eating away at your revenue? Protect your profits with SupplyPike’s deduction management platform for Walmart!