Learn about:

*   The four steps to becoming a Kroger supplier
*   Whether you should keep your brand name
*   How to prepare for your product presentation

* * *

Kroger is the largest supermarket chain in the United States, according to [**annual sales reports**](https://www.foodindustry.com/articles/the-largest-supermarket-company-in-the-u-s-is-krogers/). The company runs a variety of brand names that go beyond food items. Jewelry and apparel stores are part of the corporation’s banner, giving interested vendors plenty of options when they’re ready to become Kroger suppliers.

Getting your product into Kroger supermarket involves a little more than taking a sample item to the manager’s desk. There are certification and registration processes all potential vendors must follow before getting approval.

Here’s what you need to know about becoming a Kroger supplier. 

Four steps to get your product into Kroger 
-------------------------------------------

The Kroger Co. works with local and global supplies from large and small companies. The company’s goal is to sell fresh, high-quality products to over 8 million daily shoppers. It is always looking for new vendors with high-quality items.

### #1 Get certified 

A third-party governing agency must certify you or your business. You cannot certify yourself. 

The certification process varies depending on the products you want to supply to the grocer. Food items require different certifications than jewelry or clothing brands. 

### #2 Complete the registration process 

Anyone applying to become a Kroger supplier starts in the [**Supplier Hub**](https://www.thekrogerco.com/vendors-suppliers/supplier-hub/). It’s where you begin the registration process. 

You’ll enter in your contact information, along with the company name and tax ID number. Without the tax number assigned during certification, you can’t finish the registration paperwork.

Vendors have 90 days to supply the missing information before Kroger’s system deletes their application.

### #3 Wait for an invitation from Kroger 

The Kroger Co. will review vendors’ initial applications through [**CVM Solutions**](https://www.cvmsolutions.com/cvm-supplier-diversity-data-and-management-solutions). If the grocer finds that your product fills a niche and fits with its brand, prospective suppliers will receive a notice to access their profile on the Supplier Hub page. From here, Kroger asks vendors to supply additional information. You will want to have all of your documents in order.

*   [**Dun and Bradstreet number (DUNS)**](https://supplierwiki.supplypike.com/articles/what-is-a-duns-number) for all facilities associated with your business
*   W-8 or W-9
*   2017 or later **Standard Vendor Agreement (SVA)** document

You also need a certificate of insurance information from the following parties:

*   Professional vendor
*   IT service providers
*   Dedicated 3rd-party trucking and manufacturing
*   Non-dedicated common carriers
*   Other vendors associated with the product

Kroger requires additional information depending on the department your product falls into. Seafood, bakery, deli, and apparel items require [**electronic data interchange (EDI) information**](https://supplierwiki.supplypike.com/articles/how-to-set-up-edi-with-kroger/). Manufacturing and General Merchandise need a product home page, while jewelry products are subject to diamond testing agreements.

### #4 Wait for Kroger to contact you 

It can take up to 60 days before Kroger contacts you. They keep your completed registration in the system after two months if an opportunity to start shipping your product to a distribution center hasn’t come up.

The company only contacts vendors when there is a place to put the product on the shelves. It can take several months before vendors start realizing a profit.

Should you keep your brand name? 
---------------------------------

You worked hard to create and build a brand name, so it isn’t easy to give it up and replace it with a supermarket label. There are a few reasons to consider allowing Kroger to rebrand your product to the store’s private label. Vendors who are willing to entertain a private label brand in their product pitch often receive faster approval.

The supermarket giant focuses on its private label brands to appeal to its customer base. Kroger stores are known for their fresh produce and other food items, along with their signature low prices. 

The company’s **Private Selection** is one their shoppers consistently look for and buy. It’s a large percentage of Kroger’s annual earnings.

Vendors do lose their brand name. The packaging for Kroger’s private label brand does look cheaper, and the company has specifically designed it that way. The marketing appeals to consumers who are looking to save money. The company also purchases a lot of volume from its private brands. If you have the product ready for shipping, it is a potentially profitable way to become a Kroger supplier.

You can also choose to keep your brand name, which doesn’t mean that your product pitch will fail. If you have a quality item, you can get approval to become a certified Kroger vendor. The only difference is your brand may not entice shoppers looking to save money with Kroger’s select brands.

How to prepare your product for presentation 
---------------------------------------------

There are a few things to consider before you present your product to Kroger Co., and one is the brand. Before you decide to sell your products in other regions, think about the area and its preferences. Not every item does great in all Kroger grocery stores.

How you present your brand goes a long way towards getting approval to become a Kroger supplier. It also affects how your brand communicates with consumers. You also want to pay attention to packaging. While aesthetics are important, so is a package that is safe and easy to open.

Safety and testing for all products sold at Kroger supermarkets are paramount. You will need to supply product safety certifications on most items. Product safety also applies to how you ship the item. Kroger has a supplier management system that can help new vendors work out any kinks in their shipping channels.

Getting your product into Kroger as a supplier 
-----------------------------------------------

If you have a quality product that meets Kroger’s stringent criteria, it can be a profitable venture to become a supplier. You have the opportunity to introduce your creation to thousands of new consumers, and Kroger buys in bulk which is beneficial to your profit margin.

There is a long waiting period to become a Kroger supplier. There are two parts to the application, and it can still take several months before your product makes it to the shelves.

However, once your items are inside the stores, you can expect to see a jump in your company’s quarterly sales. With nearly 2,800 stores in the U.S., Kroger is a great place to market your products.

Get visibility into your data
-----------------------------

Once you’re a Kroger supplier, you’ll need to stay on top of your data. SupplyPike has partnered with SPS Commerce to get Kroger suppliers visibility into their data and fight invalid deductions. Check out [**our partnership page**](https://www.supplypike.com/spscommerce) for more information!

[![Find success at Kroger. Get started.](https://lh3.googleusercontent.com/HQzqFX14pWVhXJpswOM9CfzBlifyFDgfuHas08TE6vxjgYq6cP6UL_ewK0mDGf1L-Rq0-zhjU7QEC1swd5-ysuAq8NCL9XOaaIU2S4Jykd8jSVFMdvXyhWNBeq_oN8zGCBHFq2pW)](https://www.supplypike.com/spscommerce)

How Do I Become a Kroger Supplier?

Learn about:

*   What Kroger’s Supplier Hub is
*   How to get started with Supplier Hub
*   Kroger’s compliance guidelines

* * *

Getting started as a new supplier for Kroger is an exciting adventure. As the top supermarket in the U.S., The Kroger Company prides itself on selecting its vendors carefully and thoughtfully, ensuring the delivery of quality grocery products to consumers across 35 states and nearly 3,000 stores. Getting started as a new vendor means having exceptional products, being familiar with Kroger’s values, and getting set up on the **Supplier Hub**. 

What is the Supplier Hub?
-------------------------

The Supplier Hub is Kroger’s **online vendor management system** that maintains the quality of vendors and the items they sell. It is a portal to communicate with suppliers, assess them for compliance, and evaluate their trustworthiness. 

Kroger uses a third-party verification process to choose its suppliers. The process varies based on the type of service or goods provided. Selected vendors will receive an invitation email from Kroger asking them to join the company’s supplier software. 

Kroger requires chosen suppliers to click the link in the invitation email and manually enter the username and password from the email. Suppliers then must change the password to something more personal after login, look over the “General” screen, and then click the “Update” button to continue with the process. Vendors will supply their remaining information and documentation, and Kroger will then contact them. 

What is the Supplier Hub order of operations? 
----------------------------------------------

The order of operations for setting up the Supplier Hub are as follows:

1.  Accept the invitation.
2.  Enter a new username and password.
3.  List the supplier’s compliant facilities.
4.  Include the required documentation.
5.  Complete the vendor registration.
6.  Sign reviews.
7.  Set up the supplier’s payment information.
8.  Receive company identification numbers. 

At this point, Kroger may begin setting up items for purchase. New vendors must set up the item to include product specifications. Kroger must then approve it before the item becomes orderable. 

What documentation is required to set up the Supplier Hub? 
-----------------------------------------------------------

When suppliers sign up for the Supplier Hub, Kroger will require the following documents: 

*   [Corporate Dun and Bradstreet number](https://supplierwiki.supplypike.com/articles/what-is-a-duns-number/)
*   Standard Vendor Agreement (2017 version or older)
*   W8/W9
*   Certificate of Insurance 

Depending on the type of product, Kroger may require additional information, such as [testing forms for apparel](https://supplierwiki.supplypike.com/articles/what-are-the-steps-for-apparel-testing-at-kroger/) or [other product safety and quality certifications](https://supplierwiki.supplypike.com/articles/understanding-product-testing-safety-quality-and-usage/). 

[**_Related Reading: How to Set up EDI with Kroger_**](https://supplierwiki.supplypike.com/articles/how-to-set-up-edi-with-kroger/)

What does it mean to be within Kroger’s compliance guidelines? 
---------------------------------------------------------------

Vendors wishing to display their products in the supermarket must be familiar with [**Kroger’s compliance requirements**](https://supplierwiki.supplypike.com/articles/what-compliance-requirements-does-kroger-have/#in-review). These requirements include: 

*   Shipping the correct amount of cases
*   Determining the best date for order arrival
*   Meeting the appointment time within a two-hour window
*   Informing Kroger of unavailable items
*   Including readable/scannable [**barcodes**](https://supplierwiki.supplypike.com/articles/what-are-the-different-segments-of-a-barcode/)
*   Registering products covered by Underwriters’ Laboratory
*   Clearly labeling cases to be readable from four feet away
*   Following product preparation directions from the Kroger purchase order
*   Including a packing list featuring:
    *   purchase order number
    *   order and shipment quantity
    *   vendor style or stock number
    *   UPC
    *   customer address
    *   product details
*   Following guidelines for perishable items
*   Complying with ergonomic requirements
*   Meeting package requirements by complying with case/pallet/slip-sheet/tie-sheet specifications
*   Meeting display requirements by complying with size/weight specifications
*   Including purchase order numbers
*   Scheduling delivery appointments
*   Paying a diesel fuel allowance
*   Detailing shipping terms for returns
*   Signing a Reclamation Agreement at least once per year
*   Complying with the [**Reclamation Policy**](https://supplierwiki.supplypike.com/articles/krogers-reclamation-policies/)

Kroger will charge vendors non-compliance fees to orders that do not meet the expectations stated in the compliance requirements. 

How long will it take for new products to appear on shelves? 
-------------------------------------------------------------

There can be a long waiting period to become a supplier for Kroger, whether the product is grocery, apparel, or home goods. The process can take several months. Often, the initial vetting process is over, and the vendor has set up the Supplier Hub, but there is no place to put the particular product on the shelves. 

If an opportunity to ship a particular product to a distribution center has not arrived, Kroger will keep a supplier’s completed registration and documentation in the system for two months. 

Is it worth it to become a Kroger supplier? 
--------------------------------------------

Not only is getting through Kroger’s intense vetting process a success in itself but becoming a supplier for the second-largest retailer in the U.S. is a profitable venture in more ways than one. Kroger buys its products in bulk and introduces its products to thousands of new customers. Additionally, Kroger’s vendor software Supplier Hub makes managing shipping channels safe and easy, saving vendors both money and time.

Stay on top of your data
------------------------

[**SPS Commerce and SupplyPike**](https://www.supplypike.com/spscommerce) have partnered to help Kroger suppliers stay on top of their data and fight invalid chargebacks. Harnessing the power of EDI, Deductions Navigator gives you maximum visibility. [Sign up today!](https://www.supplypike.com/spscommerce)

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Getting Started with Supplier Hub

Learn about:

*   What Coupa is and how Kroger suppliers use it
*   How to set up a Coupa account
*   What a spend management program is

* * *

As the country’s largest supermarket chain, Kroger is a leader in the retail industry. Kroger sells food products as well as clothing and jewelry items to customers both online and in stores. Vendors who partner with Kroger can sell products in nearly 2,800 stores across the country. 

Kroger now requires suppliers to use **Coupa** as a spend management system. Current Kroger vendors switched to Coupa at the beginning of 2021, and Kroger requires all new suppliers to have an account. 

Kroger suppliers previously used the ePro/Ariba system, but that system is no longer in place as of March 2021. Now, any supplier that is interested in partnering with Kroger will use Coupa.

As a Kroger Coupa supplier, companies can partner with the supermarket and grow their business. Coupa provides a platform for companies to follow a solid procure-to-pay process and reach more customers in stores and online. 

No matter the company’s size, whoever wants to become a Kroger supplier must first have a Coupa account, which is free and easy to use. This article takes a closer look at Coupa and setting up a Coupa Kroger supplier account.

In addition, this article will discuss:

*   What is Kroger’s new supplier portal? 
*   How does Kroger use Coupa?
*   How do I become a Kroger Supplier?
*   How do I go about setting up a Coupa Kroger supplier account?

What is Kroger’s new supplier portal? 
--------------------------------------

Kroger’s [**Coupa**](https://en.wikipedia.org/wiki/Coupa) system for vendors is a cloud-based software service founded in 2006 for Business Spend Management. It’s a leading SaaS technology platform that offers various applications for procurement, expenses, and payables. With Coupa, suppliers and vendors can track invoices and payments in real-time. 

Vendors that want to have efficient data collecting, processing, and analyzing use Coupa to save time and money. Companies like Kroger, Amazon, and Rent-A-Center use Coupa as a spend management system for tracking orders and processing procurements.

Like many cloud-based software platforms, there is a dashboard for users to navigate and find what they need. Whether it’s purchase orders, expenses, or invoices, Coupa helps companies keep the supply chain running smoothly. 

How does Kroger use Coupa?
--------------------------

Every vendor that works with Kroger will have access to a [**Coupa Supplier Portal**](https://success.coupa.com/Suppliers/For_Suppliers/Coupa_Supplier_Portal) profile. On the dashboard are invoices, purchase orders, and other applications that assist in tracking procurement and sales like item setup. 

Vendors manage online and in-store products with Coupa Supplier Portal – everything from procurement to shipping. Vendors can also handle customers, create catalogs with the item information, and check the transaction status of any order.

The Coupa Supplier Portal (or CSP) gives suppliers an at-a-glance look at their Kroger catalog and product information, purchase orders, and invoices. 

Coupa views Kroger as a customer, and suppliers can link to the Kroger catalog to provide their at-home customers with quality [**consumer packaged goods (CPG)**](https://supplierwiki.supplypike.com/articles/defining-consumer-packaged-goods-cpg/). Kroger offers food items, clothing, and jewelry in its catalog. 

How do I become a Kroger Supplier?
----------------------------------

To [**become a Kroger supplier**](https://supplierwiki.supplypike.com/articles/how-do-i-become-a-kroger-supplier/), a company must first apply for certification and registration. More specifically, certify the business through a third-party governing agency and register with [**Kroger’s Supplier Hub**](https://www.thekrogerco.com/vendors-suppliers/supplier-hub/). After certification is complete and Kroger approves the registration, setting up Coupa is the next step. 

Setting up Coupa and becoming a Kroger Supplier takes two steps; however, there is a long waiting period from application to selling products. Also, Kroger requires [**electronic data interchange (EDI)**](https://supplierwiki.supplypike.com/articles/what-is-edi-electronic-data-interchange/) information from its suppliers. 

When a company becomes a Kroger supplier, it can expect an increase in sales within the first three months. Kroger has nearly 2,800 stores across the country.  

What is EDI?
------------

Kroger requires vendors to use EDI for tracking invoices and purchase orders. It’s a digital system that provides an accurate record of sales transactions. 

EDI, or [**electronic data interchange**](https://supplierwiki.supplypike.com/articles/how-to-set-up-edi-with-kroger/), is an online and standardized format for transmitting documents such as purchase orders, invoices, and transaction memos. It connects suppliers with distributors efficiently and seamlessly so that both companies can track and, potentially, increase sales.

Kroger uses [**Webgate+**](https://www.edigateway.com/en/edi-kroger-tutorials/) to streamline EDI transactions and requires all vendors to have an account. While Coupa tracks the procurement and shipping of products, Webgate+ tracks the paperwork. 

What is Supplier Hub?
---------------------

Another platform Kroger suppliers must register with is the company’s own Supplier Hub. It’s [**easy to register**](https://supplier.kroger.com/OA_HTML/OA.jsp?page=/oracle/apps/pos/onboard/webui/ProspRegPG&OAHP=POS_GUEST_REG_HP&OASF=POS_SUPPREG_REGISTER&OAPB=POS_ISP_BRAND&ouid=8DBC59F63887C2A6) and is the second step to becoming a supplier. 

Supplier Hub is Kroger’s vendor management system. All suppliers must register as a vendor and receive unique login credentials to manage the company’s profile. 

To register as a Kroger supplier, each company must have a [**DUNS number (Dun and Bradstreet number)**](https://supplierwiki.supplypike.com/articles/what-is-a-duns-number/), a unique number that verifies the company’s identification. Kroger also asks that each company submits proof of insurance, tax forms, and the standard vendor agreement. 

Does Coupa replace Supplier Hub?
--------------------------------

**Supplier Hub does not replace Coupa.** Instead, suppliers will use both platforms. 

Simply stated, *all Kroger suppliers will need to register with both Supplier Hub and Coupa*.  Kroger uses Coupa and Supplier Hub simultaneously and in tandem to track vendors and products. 

Supplier Hub is an essential registry of vendors and sends some information to Coupa, but Coupa also handles purchase orders and invoices required in a transaction. 

Suppliers can have a Coupa account before registering with Kroger. However, Supplier Hub is Kroger’s platform for managing vendors. Registering with Supplier Hub is a vendor’s first step to becoming a business partner with Kroger. 

How do I get set up with Coupa?
-------------------------------

To set up a [**supplier Coupa account**](https://success.coupa.com/Suppliers), visit the website and start the onboarding process. Beforehand, suppliers should know their catalog, invoicing, and purchase order processes. Suppliers that have questions about Coupa or using the Coupa Supplier Portal with Kroger products should contact [**coupasuppliergolivesupport@kroger.com**](mailto:coupasuppliergolivesupport@kroger.com). 

After creating the account, users can access the [Coupa Supplier Portal](https://www.thekrogerco.com/wp-content/uploads/2020/07/Coupa-Suppliers-FAQ.pdf) (CSP) and connect products to Kroger’s Coupa platform. Catalog updates are immediately reflected for both supplier and customer, making the entire process run smoothly. 

If a company already has a CSP profile, it can simply merge the existing accounts by following [**the “Manage Merge Requests” instructions**](https://success.coupa.com/Suppliers/For_Suppliers/Coupa_Supplier_Portal/Administer_the_CSP/03_Manage_Merge_Requests). If a supplier uses the same email for multiple customers, Coupa automatically links the accounts, and suppliers can switch between customers using a dropdown menu. 

How much does Coupa cost?
-------------------------

Coupa is a free resource for suppliers to manage Kroger catalogs, purchase orders, and invoices easily. There is no sign-up charge or registration fee to access the Coupa Supplier Portal and no costs for connecting to Kroger’s Coupa platform. 

Coupa is also available worldwide and offers [**supply guides**](https://success.coupa.com/Suppliers/For_Customers/Toolkit/Document_Exchange/The_Coupa_Supplier_Portal/Coupa_Supplier_Guides) in Japanese and Chinese for international suppliers.  

Pros of using Coupa
-------------------

Coupa is a versatile resource with many benefits. These advantages allow suppliers to efficiently and effectively run their business and keep the supply chain moving. Kroger suppliers with a Coupa account may enjoy these benefits: 

*   Quick access to store catalogs 
*   Whole dashboard with the ability to view invoices, expenses, and more 
*   Great customer support

Coupa helps to fully optimize a company’s business processes and increase sales, which leaves room for innovation and growth. 

Cons of using Coupa
-------------------

While Coupa makes placing orders more efficient, there are some challenges to using the platform. Companies that are considering becoming a Kroger supplier should keep these in mind before moving forward:

*   A challenging learning curve to onboarding and understanding the dashboard 
*   Confusing navigation and outdated usability 
*   The app is not user-friendly

Users should take advantage of [**support documents**](https://success.coupa.com/Suppliers/For_Suppliers/Core) available on the website to learn more about onboarding and utilize Coupa to its fullest capabilities. 

How do I get paid as a Kroger supplier?
---------------------------------------

After a product sells to the at-home customer, the supplier should invoice Kroger through Coupa to receive payment directly from Kroger. Coupa does not pay suppliers.

If a Kroger supplier receives a purchase order through another system (not Coupa), the supplier should continue operating within that system.

There is a separate invoice system for vendors that use non-purchase-order-backed invoices. Kroger works directly with these companies to fulfill orders and make payments, but it’s rare. Most suppliers will work within Coupa and receive compensation from Kroger. 

What is a spend management system?
----------------------------------

Companies of all sizes use a **spend management system** to manage all aspects of a supplier or vendor. A high-quality spend management system will cover everything from customer demand and order management to procurement and shipping. It’s a system that helps companies manage their spending or expenses in terms of department and needs, as well as profits.  

Kroger Coupa suppliers use Coupa as a spend management system to connect to Kroger, optimize their sales, and increase revenue.

Conclusion
----------

Suppliers who want to become a part of the Kroger system must first register with the company’s Supplier Hub and then create a Coupa account. Coupa is a leading spend management system that helps streamline product orders and shipments for online and in-store customers. 

Setting up a Coupa Kroger supplier account is fast and easy. Krogers is one of the leading retailers that offers various products, including groceries, clothes, and jewelry. Kroger suppliers use a Coupa account to work within the Kroger system and create revenue for themselves.   

Using data to maximize visibility
---------------------------------

Use your Kroger EDI data to get maximum visibility into your compliance and trends. [**SupplyPike and SPS Commerce**](https://www.supplypike.com/spscommerce) have teamed up to bring Kroger suppliers 1-click deductions disputes. Get started with your data today!

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What Is Coupa and How Do I Set It Up?

Learn about:

*   Kroger’s apparel and fabric testing procedures
*   How to obtain a general certificate of conformity
*   What to do if the product fails testing

* * *

**[Vendors at Kroger](https://supplierwiki.supplypike.com/articles/how-do-i-become-a-kroger-supplier/)** have to go through an **apparel and fabric testing process** before Kroger features their goods in-store. This article will explain that process and answer any questions that potential new suppliers and vendors may have. 

Kroger’s apparel testing process helps ensure that the supermarket chain only sells products that meet its high standards. The testing process also works out kinks and malfunctions before the product hits store shelves. 

Kroger requires all vendors and suppliers of both apparel and general merchandise have to go through these same steps and testing to ensure their product meets its standards. 

Test procedures and electronic test request form 
-------------------------------------------------

The beginning of Kroger’s product testing procedure starts with its **electronic test request form**. This form is mandatory for all vendors and suppliers at Kroger. Suppliers must fill out each e-TRF entirely with accurate information for acceptance.  

When suppliers submit these test request forms to Kroger, they must include some pieces of additional information. There are three numbers that vendors and suppliers must put on their form:

*   Factory ID number
*   Supplier ID number 
*   Manufacturing ID number (for factories)
*   [DUNS numbers](https://supplierwiki.supplypike.com/articles/what-is-a-duns-number) (for suppliers) 

Both factories and suppliers should also include two email addresses for Kroger to contact with any further questions on the e-TRF. The usual time for an electronic test request is only four days. However, that time can extend if proper information is not on the forms originally. 

Test request forms for fabric
-----------------------------

Fabric and apparel suppliers must include additional pieces of information on their forms. Vendors shall include all colorways and one style of fabric on their test request. If a vendor’s particular fabric intends to play a part in multiple garment styles, all style numbers should also be on the form.

Test request forms for garments 
--------------------------------

For garment test request forms, tone garment submission can include all style numbers. If the garment style has the same beginning numbers or letters, vendors or suppliers can combine them into one singular style number on the vendor form. 

At this point, a product has passed required testing, and production can begin. After product production, the completed product will undergo lab testing. 

[**_Related Reading: Understanding Product Testing, Safety, and Quality_**](https://supplierwiki.supplypike.com/articles/understanding-product-testing-safety-quality-and-usage/)

How to test apparel/fabric 
---------------------------

The testing time for apparel and fabric can take around four business days. This timeframe is only valid if the vendor or supplier includes all necessary and required initial lab testing information. 

The Kroger apparel product testing process requires a Kroger developer to pre-approve the fabric before it begins the testing process. In addition to that, vendors and suppliers must submit all different colorways for testing.

Apparel needs to pass quality and safety standards on the first round. Failed apparel can only retest with the consent of the Kroger Apparel Compliance Manager. Kroger will not order apparel that fails testing, or the grocer will request a discount on the items. 

Third-party labs will test apparel that the vendor or supplier continues to produce in bulk. This process will randomly select items and perform the requirements of Kroger’s quality and safety test processes. Kroger will not cover third-party testing costs on previously failed or unacceptable apparel or products. 

Children’s versus adult garment testing 
----------------------------------------

The process for children’s garment testing has a slightly more in-depth approach than adult garments. Children’s garments of all colorways have to go through lab testing. 

Adult garments must have the following colorways tested: 

*   Darkest
*   Medium
*   Lightest 

If any garments seem to require additional testing, the supplier must submit garments for testing. Garments that have not passed appropriate lab testing will not ship except by special permissions by the Compliance Manager. 

General certificate of conformity (GCC)
----------------------------------

If a garment passes the required testing process laid out by Kroger, a third party will approve the garment. Then, the supplier will receive a **general certificate of conformity (GCC)** for its products. 

Only garments with colorways that have all passed the quality and safety testing process in full will receive this certificate. If a previously failed garment has managed to pass all requirements, it may obtain a general certificate of conformity as well. 

If suppliers know of their product failing required lab testing, they should contact the **Regulatory Compliance Manager** for the next steps. Products that have failed to meet standards will not continue in the process and ship until the vendor or supplier resolves the issues. 

If vendor or supplier products have passed approval standards and testing and have obtained their General Certificate of Conformity, then a purchase order is eligible for approval. 

The last step will be to submit appropriate paperwork and certificate to the necessary parties. 

Reorders 
---------

For adult garments, a retest is unnecessary for reordering identical products. However, if the fabric or garment changes, then a retest will become necessary. The test report a supplier or vendor receives will stand for one year from the time of approval. 

For children’s garments, the certificate of conformity is also valid for one year. However, children’s garments on reordering will require retesting for regulatory lines. If a children’s garment fabric changes, Kroger requires additional testing for a new GCC. 

Final thoughts
--------------

The process for Kroger apparel product testing can be relatively simple if vendors and suppliers follow directions and submit all necessary information on their test request forms. After that initial phase is complete, vendors and suppliers should continue to submit all required information and quality and safety testing to receive the General Certificate of Conformity. 

Maintenance of product testing also plays a crucial role in maintaining a healthy supplier or vendor relationship with Kroger. 

Chargebacks and new vendors
---------------------------

New Kroger vendors should beware of chargebacks for non-compliance. However, the good news is that some are disputable. With SupplyPike’s [**Deductions Navigator**](https://www.supplypike.com/deductions) and our [partnership with **SPS Commerce**](https://www.supplypike.com/spscommerce), Kroger suppliers can access 1-click disputes.

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[Find out more](https://www.supplypike.com/spscommerce) about our partnership today!

What Are the Steps for Apparel Testing at Kroger?

Getting Started at Kroger

Learn about:

*   The seven transportation methods Kroger uses
*   The weight and size requirements for each type of freight
*   How to ship to Fred Meyer

* * *

Grocery stores use a variety of transportation routes during the shipment of goods. The logistics involved in these processes ensure a seamless transfer of products from supplier and vendor to stores and their valued customers. 

Transportation routing is an essential aspect of boosting and maintaining product flow and expanding to different locations using various vendors and suppliers. Kroger has developed standards to streamline its vendors’ approach to packaging, labeling, shipping, and transportation. 

Purchase orders that arrive after the **original requested arrival date (ORAD)** can incur a non-compliance fee, so vendors and suppliers must consistently meet deadlines using the proper shipping method. 

It’s also imperative that both vendors and suppliers work with carriers who have registered and received a [**Standard Carrier Alpha Code (SCAC)**](https://supplierwiki.supplypike.com/articles/what-is-a-scac-code-and-how-is-it-used/) so suppliers can appropriately identify and track them. This unique, two to four-digit code plays an integral role in cargo tracking required when a carrier is transporting goods to U.S. Customs.

Listed below are seven types of vendor standard routing instructions for Kroger. 

Vendor Standard Routing Instructions
------------------------------------

To keep their product flow moving, Kroger uses different types of routing instructions:

*   Ground parcel
*   Air parcel
*   LTL shipments
*   LTL guaranteed shipments
*   LTL refrigerated
*   Full truckload

Additionally, the grocer has shipping rules for its Fred Meyer stores.

### Ground parcel 

Kroger uses **ground parcel shipping** for non-palletized boxes (packages not secured to a pallet during shipping). These specific shipments must weigh between one and 150 pounds. These particular loads consist of much smaller products (in size, quantity, and weight). 

A truck delivers these types of packages, and they are usually not on a tight delivery deadline. Since they do not need to arrive as quickly, the products come later, and the shipping is at a lower price.  
  
**FedEx Ground shipping** within the continental United States typically takes one to five business days, while delivery to Alaska and Hawaii will increase the time to three to seven days. 

### Air parcel 

If a package is between one and 150 pounds, but the order requested arrival date is sooner, the product(s) arrive via **FedEx Express** on an airplane. This shipping method will transport goods from point A to point B through the air, which is much quicker and generally safer than ground parcel shipping. Air parcel shipping is especially beneficial when transporting products internationally. 

FedEx Express can deliver packages within two to three business days or overnight, depending on what the vendor selects.

### LTL shipments

[**LTL**](https://supplierwiki.supplypike.com/articles/what-is-ltl-shipping/) stands for “**less-than-truckload**,” which indicates that the shipment is small freight. This freight does not require a full-sized semi-trailer. The vendor palletizes these shipments, meaning they attach the cartons to pallets for safer shipping and handling. 

Packages in these loads can weigh a minimum of 150 pounds and a maximum of 10,000 pounds. They must also be less than 16 linear feet in a trailer and less than 600 cubic feet in size.

Kroger has an existing contract with **XPO Logistics Freight** for national and regional freight shipments. XPO serves as Kroger’s primary carrier for qualifying suppliers who require LTL Non-Refrigerated shipment. Shipping can usually take anywhere from one to six days. 

### LTL guaranteed shipments

**LTL guaranteed shipments** are also on pallets and must be less than 16 linear feet within a trailer. Freight is between 150 and 10,000 pounds. This shipping method is priority-based, requires an additional rush fee, and is applicable when there is a demanding delivery deadline. 

The main difference between [**LTL shipments**](https://supplierwiki.supplypike.com/articles/the-lowdown-on-freight-shipping-parcel-ltl-and-ftl/) and LTL guaranteed shipments is that LTL shipments’ delivery dates are estimates. If a vendor or supplier requests a guaranteed shipment, the carrier will make sure to deliver the freight on the specified deadline. 

XPO Logistics Freight will ensure that time-sensitive deliveries leave and arrive on time. The vendor must classify these orders as “Instant Guaranteed,” “Guaranteed,” or simply “G,” along with specific instructions, including the delivery date and time. 

### LTL refrigerated

**LTL refrigerated shipping** contains the package in a temperature-controlled environment to preserve the freshness of the products. LTL refrigerated shipments are identical to regular LTL shipments in that they must not take up a full trailer. However, They cannot exceed 750 cubic feet and must weigh between 250 and 10,000 pounds. 

When carrying frozen items, the air temperature within these trailers must fall between the ranges of -10°F to 0°F  and the ranges of 28°F to 31°F while in transit. For foods that only require cooling, the air temperature must be between the ranges of 32°F to 34°F or 36°F to 38°F during transit. 

FFE Transportation ships these special refrigerated deliveries and delivers them throughout the continental United States. Due to the refrigeration requirements, this type of shipment is generally more costly than regular LTL shipments.  

### Truckload (TL)

**Full truckload (FTL)** or **truckload (TL)** are shipments for freight that weighs over 10,000 pounds and are larger than 16 linear feet or 600 cubic feet. Kroger suppliers use this method for shipping larger quantities and heavier products that require the use of a full semi-truck trailer (either 48’ or 53’). 

FTL shipments take up the entire trailer weight and space, while LTL shipments only a portion of the space of weight in the truck trailer. Sometimes the product weight can make FTL shipping a more profitable delivery option than paying for several LTL shipments. 

FTL carriers deliver their freight straight to their designated location, resulting in improved efficiency and quicker transit time. The carrier bases all routings on the specific product or products in the shipment, the origin, designated delivery location, and any unique service requests or conditions involved in the products’ shipment. 

[**_Related Reading:  LTL and FTL Shipping: Which Is Best for You?_**](https://supplierwiki.supplypike.com/articles/ltl-and-ftl-shipping-which-is-best-for-you/)

Fred Meyer
----------

[**Fred Meyer**](http://www.fmroutinginstructions.com/index.htm?) is a chain of over 130 one-stop shopping stores across Oregon, Washington, Idaho, and Alaska that merged with Kroger in 1998. This chain has specific guidelines for purchase orders shipped to Fred Meyer stores and particular instructions depending on the state from which the supplier is sending the shipment.

If the vendor is shipping collect or prepaid POs to a Fred Meyer store, vendors and suppliers must send these in separate shipments. Prepaid suppliers may ship POs through any carrier with the freight prepaid. 

In summary
----------

Kroger uses a wide variety of transportation options to serve its suppliers and vendors better. Suppliers should study their products to ensure that they select the most appropriate and cost-saving method of shipping.

Kroger suppliers and chargebacks
--------------------------------

Kroger suppliers are often subject to chargebacks and deductions for failing to meet ORAD requirements. However, with the right tools, these fees are disputable. Join SupplyPike and SPS Commerce to leverage your data and get your money back.

Check out [**our partner page**](https://www.supplypike.com/spscommerce) for more information!

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What Are the Different Types of Transportation Kroger Uses?

Learn about: 

*   What Kroger’s Direct Ship Program is
*   How the Direct Ship Program works
*   How you can become a dropship vendor with Kroger  

* * *

If you’re a supplier, **Kroger’s Direct Ship Program** is an exciting opportunity. Kroger, a supermarket grocery chain, is a trusted name with US consumers, and it has an enormous traditional and online presence. Here is a quick guide to Kroger’s Direct Ship Program. We’ll discuss how you can become a **Kroger Direct Ship Vendor (DSV)**. 

What is dropshipping? 
----------------------

**Dropshipping is direct shipping.** Drop shippers ship their goods directly to Kroger customers. They use their fulfillment capacity, so drop shippers can offer more extensive product selections to consumers.

**Drop shippers keep the inventory themselves** and fulfill the orders on Kroger’s behalf. This method gives vendors better stock streamlining while the customer enjoys ease and convenience. Kroger’s dropship (or Direct Ship) program’s policies [**apply to customer orders placed via e-commerce on ship.banner.com**](https://www.thekrogerco.com/wp-content/uploads/2019/04/Direct-Ship-Program-Policies.pdf). The supplier fulfills the order and ships it directly to the customer’s “ship-to” home address.

As [**Kroger’s Direct Ship Program**](https://www.thekrogerco.com/wp-content/uploads/2019/04/Direct-Ship-Program-Policies.pdf) participant, vendors must stay aware of program policy changes. They must comply with all policy changes **within 60 days of when Kroger publicizes them**. If they cannot do this, Kroger will **remove their product from the e-commerce platform**. When the supplier shows that it is complying with the policies, Kroger will put the item back up on the site. A written exemption signed by a Kroger executive can get vendors an exemption. 

How does processing and fulfillment work with Kroger Direct Ship Program? 
--------------------------------------------------------------------------

Kroger uses **Logicbroker** to place and transmit direct ship product orders. Logicbroker is Kroger’s **designated third-party commerce network**. Vendors must have an active Logicbroker connection at all times for receiving and processing orders. They must give Kroger’s Digital Assortment Team **60 days’ notice** if they disconnect from Logicbroker.              

How to submit product specifications
------------------------------------

**Direct ship vendors must provide detailed product specifications**. They should also submit descriptive romance copy for their products. Providing this information will help drive sales. Kroger may modify the content after submission. 

Product content includes **product descriptions, images,** and **information on features and benefits**. It may also include audio, graphics, interactive media or video animation, and website addresses. Suppliers must ensure the product information is **accurate** and **complete**. They also must inform Kroger’s Digital Assortment Team if the product information ever changes.

Vendors must **submit up to six images for each item**. The primary images should be product images, and they may also include lifestyle images to help put the product in context for consumers.

How does inventory work with the Direct Ship Program? 
------------------------------------------------------

Direct ship vendors must **submit on-hand inventory data** for every [**Stock Keeping Unit (SKU)**](https://supplierwiki.supplypike.com/articles/what-are-the-different-item-codes/#store-keeping-units-skus) daily. Vendors must correctly **set up and maintain all the inventory information** for their products in the Direct Ship system. 

**Inventory information must always be up-to-date and correct.** Incorrect information leads to disappointed customers. If the vendor sells with other e-commerce retailers as well as Kroger, it should **submit updated retail information several times a day**, as inventory levels will change more frequently. Vendors must immediately zero out the inventory if a product is out of stock. 

How to handle customer information
----------------------------------

**Kroger direct ship vendors will directly receive and deal with private customer information.** Vendors must remember that all this information is **confidential** and **keep it private and protect it**. Suppliers have no right to use customer information in any way other than for shipping the ordered products. 

Product quality is essential
----------------------------

Of course, vendors must only provide products that **align with Kroger’s high-quality standards**. DSVs should notify Kroger immediately if there is ever a [**product recall**](https://supplierwiki.supplypike.com/articles/what-do-i-do-when-my-product-has-a-recall/) on anything they sell and use the official protocol for this process. This procedure ensures Kroger’s Direct Ship team and the Digital Assortment team are aware of the product recall. 

**Recalled products immediately disappear from ship.banner.com websites.** When customers have already purchased a recalled product, the vendor **must credit Kroger**. This transaction will also include any related fees.

What to do with discontinued products
-------------------------------------

If a vendor decides to no longer sell an item, Kroger will consider the **product discontinued**. Suppliers must notify Kroger if they want to discontinue an item. Once they have done so, **Kroger will remove the product from the site**. Kroger also calls a product discontinued if **the Digital Assortment Team decides not to continue carrying the product in Kroger’s Direct Ship Assortment**. 

How does the Direct Ship Program classify vendors?  
----------------------------------------------------

Kroger uses vendor classifications based on **KPIs (key performance indicators)**. A vendor’s classification will only change as a result of **service level performance**. Kroger will tell the vendor before any classification changes take place. 

How do customer purchase orders work?
-------------------------------------

Each **customer purchase order (PO)** accommodates either **one or multiple units**. Each customer PO has **one customer Ship-To address**. Kroger sends customer POs to its vendors in the third-party commerce network several times a day, so they will always be up to date. 

What are the Direct Ship Program’s shipping timelines?  
--------------------------------------------------------

DSVs need **streamlined systems for order shipping**. The Kroger Direct Ship program has strict timelines. The vendor must ship products [**under the “standard” fulfillment timeframe**](https://www.thekrogerco.com/wp-content/uploads/2019/04/Direct-Ship-Program-Policies.pdf) within two business days. There is an exception if the vendor has another agreement with Kroger. If a supplier participates in an expedited fulfillment program, packages marked as an overnight service level shipment or FedEx Next Day must **ship within one business day**.

Kroger forgives vendors when there are **unavoidable and unforeseeable delivery delays**. However, this forgiveness does not extend to delays caused by the DSV’s products or practices. The vendor must **prepay the charges** if it finds it needs to use **premium delivery** to meet the delivery date. 

What if a customer cancels an order?
------------------------------------

Vendors should take immediate steps to stop shipment if a customer requests an **order cancelation**. Vendors should **cancel the order within one business day** if they can accommodate the request. If they cannot cancel the order and it ships, vendors must **notify the Kroger Direct Ship Operations Team**. 

Why should I become a Drop Shipper?
-----------------------------------

**Direct shipping offers many benefits** for vendors. With dropshipping, Kroger suppliers have **complete control** over their inventory and business. Drop shippers also contribute to Kroger’s success, which in turn reinforces theirs. 

The dropshipping business model recognizes that [**direct shipping is more effective management**](https://www.purolatorinternational.com/benefits-of-direct-ship-vendor-solutions/) for certain kinds of products. A business such as Kroger benefits from the better efficiency of direct shipping for the products it considers most drop ship appropriate. Kroger is experienced with direct shippers, and the company understands this business model and its logistics. 

**Kroger’s dedication to the customer experience is the reason for all its requirements and rules for drop shippers.** Kroger drop shippers must follow the regulations and satisfy the requirements. At the same time, however, drop shippers enjoy the multiple benefits and profits that result from the Kroger Direct Ship Program. 

**Independent suppliers don’t have access to the same name recognition and market that Kroger has**, thus participating in Kroger’s Direct Ship Program can take a business to the same level. Kroger DSVs get access to Kroger’s **massive market of loyal customers**. Investing the time of participating in Kroger’s Direct Ship Program brings many rewards.   

How do I become a Dropship Vendor?
----------------------------------

To become a dropship vendor, businesses must [**start by becoming a Kroger Supplier**](https://supplierwiki.supplypike.com/articles/how-do-i-become-a-kroger-supplier/). Kroger works with vendors from all over the world to bring the highest quality [**consumer packaged goods (CPGs)**](https://supplierwiki.supplypike.com/articles/defining-consumer-packaged-goods-cpg/) to its customers. To participate in sourcing events, suppliers must have a **“Prospect Registration Complete” status** in Vendor On-boarding. 

When a company registers in Kroger’s Supplier Hub to become a **Prospect Vendor**, it can participate in **sourcing events that tie in with the business**. Companies cannot do business with Kroger until approved. Potential vendors must **provide additional information** to the Supplier Hub when coming onboard and **activate the vendor profile** in the Kroger system.

Businesses should **make inquiries** with their Kroger contact if they have registered with the Supplier Hub but haven’t received a request to update their information. Vendors seeking to participate in the Direct Ship Program must set up an **active Logicbroker connection**. When a customer places an order for a DSV product, it will go through this system. 

All items added to the Direct Ship Program **must have approved SKUs**. Kroger trains and guides DSVs on **how to submit inventory information** through Logicbroker. DSVs must finish this training before launching their products. Direct Ship vendors must ensure that individuals in their organization who need to use the program get training. 

Direct ship vendors must know what to do if there are [**electronic communication failures**](https://supplierwiki.supplypike.com/articles/avoiding-common-edi-errors-with-kroger/). To avoid such failures means understanding how to use **the third-party commerce network web browser** for processing orders and meeting expectations. Vendors must also do self-monitoring with the tools provided in the web interface as an essential step to satisfy all the program’s KPIs. 

Use data to stay compliant
--------------------------

[**SupplyPike and SPS Commerce**](https://www.supplypike.com/spscommerce) are bringing data visibility to Kroger suppliers to help avoid deductions and fight invalid chargebacks. With the power of EDI, machine learning, and 1-click disputes, Kroger suppliers can focus on growing their business.

[**Take a tour today**](https://www.supplypike.com/spscommerce) to see how SupplyPike can help your Kroger business!

[![Take your business to the next level. Sign up now.](https://lh3.googleusercontent.com/fx5T-pbQHZyKdVbvfRKJauLJmxwj_m3zfSMFzL4olPgE6iGWp3Nm2gfVWADbCB_4e8XpNgIAgmhUPeJGfEUU6n4e3G5x1HGGAgHgKiNakS6LfvvPeM8gg3952z70T0rr8ostjJul)](https://www.supplypike.com/spscommerce)

What Is Kroger’s Direct Ship Program?

Learn about: 

*   Requirements for Direct Ship vendors
*   Kroger’s Direct Ship performance guidelines
*   Fees for each non-compliance type

* * *

For a vendor looking to increase profits, Kroger’s **Direct Ship** is a great way to boost sales. Since Kroger is the largest supermarket chain in the United States, a smaller supplier can easily sell goods and deliver the items to the buyer’s home. 

Customers can order items such as [**consumer packaged goods (CPG)**](https://supplierwiki.supplypike.com/articles/defining-consumer-packaged-goods-cpg/) in bulk from their homes. Another benefit is that a consumer can also request shipping products that might not be available at the local store.

Another easy way for suppliers to sell and deliver items through Kroger is **dropshipping**. Sellers list goods on Kroger and dropship to customers across the U.S., but before you start, there are [**Kroger DSV guidelines**](https://www.thekrogerco.com/wp-content/uploads/2019/04/Direct-Ship-Program-Policies.pdf) of which each vendor needs to be aware. 

Kroger Direct Ship guidelines
-----------------------------

With Kroger’s Direct Ship program, **vendors fulfill orders** on Kroger’s behalf and **maintain the inventory**. Through direct shipping, the grocer uses ship-to-home to directly deliver to the consumer’s home address, creating a perpetual buy-and-sell chain.

Kroger Direct Ship Guidelines are subject to change, and vendors need to accept any new change **within 60 days** to stay part of Kroger’s Direct Ship program. 

When listing products, vendors need to keep several things in mind:

*   Before listing products, vendors must provide **clear product descriptions**. 
*   **Product copies** are eligible to change by Kroger to maintain a streamlined user experience. 
*   Alongside the copy, vendors can submit a **maximum of six images per product**.
*   After setting up an inventory, vendors need to **update quantity levels per** [**Stock Keeping Unit (SKU)**](https://supplierwiki.supplypike.com/articles/what-are-the-different-item-codes/#store-keeping-units-skus) minimum once each day. 
*   In case that an item is out of stock, **Kroger doesn’t allow backorders and substitutions**.
*   If a vendor decides to **discontinue a product**, it needs to communicate that with Kroger **to remove the product from the website**.

Direct Ship guidelines for vendor performance
---------------------------------------------

There are several Direct Ship guidelines that Kroger evaluates to assess a vendor’s performance. In the beginning, Kroger’s Direct Ship program lists new sellers in the “**Probation**” classification. 

*   Probation ends **after 30 days** or until a vendor processes **1,000 orders**.
*   During the “Probation” period, **non-compliance penalties do not apply**.

Kroger monitors its suppliers’ performance on an ongoing basis. Vendors selling products on the Direct Ship platform have access to various self-monitoring tools to ensure they perform at an optimal level.

Kroger uses various **key performance indicators (KPI)** such as financial impact, overall performance, and policy compliance quality to classify each vendor. Kroger expects Direct Ship vendors to provide the same quality of service as the grocer itself. 

There are several compliance parameters that Kroger calculates **quarterly**:

*   **Fulfillment rate:** The vendor’s fulfillment rate needs to stay **above 95%**. Kroger calculates the rate by dividing **shipped orders** by the total **received orders**.
*   **Cancel rate:** Kroger’s compliance requirement for the cancel rate is **less than 5%**. Kroger calculates the rate by dividing **canceled orders** by the total **received orders**. 
*   **On-time shipment rate:** The on-time shipment rate needs to stay **above 95%**. Kroger calculates the rate by dividing the total **Ship by Date orders number** by the total **orders shipped**.
*   **Return rate:** The return rate needs to be **less than 5%**. Kroger calculates the rate by dividing total **returned orders** by the total **orders shipped**.

Fees for each non-compliance type
---------------------------------

Each of the four main parameters has its **non-compliance fees**. If a vendor fails to comply with the quarterly parameters, the Kroger Direct Ship platform maintains the right to the following:

*   **Fulfillment rate chargebacks:** Kroger can charge **10% of the total order value of mis-shipped quantities** if the vendor’s fulfillment error rate is **higher than 5%**. 
*   **Return rate chargebacks:** Kroger can charge **10% of the total order value of returns** due to the vendor’s performance error if the error rate is **higher than 5%**. Reasons for vendor’s error are:
    *   Insufficient packaging
    *   Incomplete shipment
    *   Mis-shipment
    *   Late shipment
    *   Shipment of used, defective, or poor-quality goods
*   [**Advance Shipment Notification (ASN)**](https://supplierwiki.supplypike.com/articles/edi-856-ship-notice-manifest/) **chargebacks:** Kroger can charge **10% of the total order value** for late shipments if the error rate is **higher than 5%**. This also includes vendors who fail to **submit ASNs on time**.
*   **Return rate chargebacks:** Kroger can charge **10% of the total canceled orders** if the error rate is **higher than 5%** for cancelations due to lack of inventory. This rate includes partially fulfilled orders as well.

[**_Related Reading: Avoiding Common EDI Errors with Kroger_**](https://supplierwiki.supplypike.com/articles/avoiding-common-edi-errors-with-kroger/)

Additionally, there are **other non-compliance types** within Kroger’s Direct Ship program that might result in non-compliance fees.

*   Kroger tags as delinquent any purchase order (PO) **not confirmed as shipped by 12:00 PM Eastern Time on the day following the ship date**. Kroger can cancel delinquent orders and set a non-compliance penalty.
*   Vendors need to provide **indirect signature service** for orders that **exceed $300**. Kroger can issue a non-compliance penalty for non-used service.
*   Kroger can deduct its vendor’s payment for **off-invoice allowances**, such as early payment discounts or defective item returns. Chargebacks for non-compliance penalties can also apply.
*   Vendors must **respond** to order inquiries **one business day after the placed inquiry**. Failure to reply may result in canceling the order and a non-compliance penalty.
*   If Kroger finds a vendor isn’t adhering to the packaging standards, it can charge **$100 per non-compliant order**.
*   If the vendor doesn’t comply with **Direct Ship Routing Guide**, Kroger can charge **$100 per non-compliance**.

### Kroger’s non-compliance fee schedule

Kroger determines the **total non-compliance fee** after assessing the error. The retailer may fine for errors as the actual financial loss cost. This chargeback also includes the **labor** and a **$100 fee**.

If the supplier fails to comply, Kroger reserves the right to **remove products** at any time and for any reason. Kroger may return products if the vendor conforms to the expected service quality.

Adhering to Kroger Direct Ship guidelines ensures the vendor maintains the partnership. Provided third-party performance tools can help vendors effectively keep an eye on essential parameters such as **rejection rate**, **fulfillment rate**, and **timeliness of shipments**.

When facing an issue, it’s better to communicate proactively with the **Kroger Digital Assortment Team** directly, rather than trying to solve it on your own. Through clear communication, vendors can run a successful business and keep a productive relationship with Kroger.

Fight non-compliance fees with data
-----------------------------------

[**SupplyPike and SPS Commerce**](https://www.supplypike.com/spscommerce) are partnering up to leverage EDI data to help Kroger suppliers fight invalid chargebacks. Using SPS’s data and SupplyPike’s [**Deductions Navigator**](https://www.supplypike.com/deductions), we bring you maximum visibility and 1-click disputes.

[**Take a tour today**](https://www.supplypike.com/spscommerce) and see how we can help you fight invalid chargebacks!

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Kroger’s Direct Ship Performance Guidelines

Shipping with Kroger

Learn about:

*   The different types of Kroger deductions
*   What each code means
*   What you can do to fight invalid deductions

* * *

Kroger suppliers will see different types of deductions that will impact their profits. For this reason, they need to thoroughly understand the various Kroger chargeback types to avoid costly mistakes.

To understand these deductions, suppliers only need to check the vendor contact list to see the entire list of deductions. This article explains what each deduction code means and a few additional details. 

What are the types of Kroger deductions? 
-----------------------------------------

There are 13 types of deductions Kroger deductions that suppliers can see. The kind of deduction will be on the invoice as a code (e.g., CD or ORAD). Suppliers need to understand that they don’t have much time to file claims on invalid deductions. They can only do so within **180 days**.

### Cash Discount (CD)

On the invoice, suppliers will see the **Cash Discount (CD)** deduction as “Discount Amount.” These types of deductions are typically in percentage terms. To understand them, suppliers must research any cash allowances before submitting their dispute claims.

### CRV Repays (CV)

The **CRV Repays (CV)** type of chargeback isn’t for everybody. They are only applicable or relevant to suppliers with a California Refund Value (CRV) or Bottle Deposits agreement. A Bottle Deposit Repay Request is necessary to dispute this deduction. 

### EDI Non-Compliance (EV)

The **EDI Non-Compliance (EV)** deduction occurs when there is an issue with a required EDI document. Before going any further, it’s worth stating that Kroger prioritizes [Electronic Data Interchange (EDI)](https://supplierwiki.supplypike.com/articles/how-to-set-up-edi-with-kroger/). Without it, none of the following would be possible:

1.  Increased accuracy
2.  Better timelines
3.  Low operating costs/expenses

To this end, suppliers should have no problem receiving or sending any purchase order through EDI. They usually have 90 days to comply with this requirement. Otherwise, they should be ready to pay an additional fee of either $250 or 1% of the amount on the invoice.

[**_Related Reading: Avoiding Common EDI Errors with Kroger_**](https://supplierwiki.supplypike.com/articles/avoiding-common-edi-errors-with-kroger/)

### List Cost (LC) 

**List Cost (LC)** is another term or code that suppliers must learn when invoicing Kroger. It refers to the difference in cost in simple terms, which the vendors can derive or determine from the “3” Reason Code. 

For price increases, Kroger requires written notice from the supplier within the following deadlines:

*   90 days prior to the effective date for general merchandise
*   60 days prior to the effective date for health and beauty care products
*   30 days prior to the effective date for all other items (excluding commodity items, such as perishables or tobacco)

Kroger is not obligated to increase a good’s price if the retailer does not receive a notification within the timeframes listed above.

For price decreases, suppliers must submit a written notice of a proposed decrease a minimum of 30 days prior to the effective date (excluding commodity items). If Kroger does not receive a notification within that timeframe, the retailer will apply a price support charge.

List cost deductions occur when price changes are reflected on the supplier’s EDI documents without proper notification to the Kroger representative.

### Off Invoice (OI)

Suppliers with allowances that are due off-invoice will receive deductions using this **Off Invoice (OI)** code. Typically, they work with Kroger to take these allowances from their invoices but only as a “2” reason code.

However, suppliers have to take note of two other things here:

1.  Deductions are only from the payment.
2.  Deductions only come into play when manual corrections are necessary for trades, co-ops, salvages, or any other kind of off-invoice allowances.

### Late Shipment (ORAD)

Suppliers who would prefer to interact with Kroger at any level can only do so after acquainting themselves with Supply Chain Vendor Documents listed on the Lavante platform’s help menu. These documents are full of information on codes such as On Time Delivery Charges.

More importantly, the documents also inform suppliers about the applicable **Late Shipment (ORAD)** fines. When preparing an invoice, the term or code to use would be ORAD, which one needs to understand before submitting any claim.

ORAD stands for “Original Requested Arrival Date,” meaning the delivery date listed on the purchase order. Kroger has other [compliance requirements](https://supplierwiki.supplypike.com/articles/what-compliance-requirements-does-kroger-have/) regarding the delivery of ordered items, such as on-time and case-fill rates.

### Overage (OV)

**Overage (OV)** is simply an overpayment that’s above what suppliers indicate on their invoices. It’s the extra amount on top of the gross total appearing on the invoice. Under the Kroger system, this would include claims that fall under any “7” reason code.

At this point, it’s worth mentioning that Kroger doesn’t encourage overages. Nevertheless, the company’s system creates room for the overage. That explains why this code is available as one of the different Kroger deduction types.

### Shipper Billing (PS)

**Shipper Billing (PS)** is a type of Kroger deduction that applies to specific invoices. It’s only for any invoice for the Kroger or Peyton warehouse locations. This deduction will appear as ###PS.

### Pickup Allowance (PU)

The **Pickup Allowance (PU)** deduction reason code refers to the freight charges that suppliers have to pay on purchase orders that Kroger carriers pick up (i.e., collect suppliers). Suppliers will see these types of deductions as “9” reason code. 

### Return Issues (RT)

**Return Issues (RT)** deductions relate to issues with or the need to return items. Kroger has a returns and refunds policy in the case of customer dissatisfaction. 

Examples of the different ways suppliers will see this code include:

*   701-4XXXXX
*   ###-V
*   000########00###
*   ###-G
*   701-9####### / 701-8#######

### Shortage (SH)

**Shortage (SH)** deductions are pretty common in transactions with Kroger. Suppliers will see them under “4” or “6” Kroger deduction types for accounting. These types of deductions appear as deduction code “08” for Peyton’s invoices.

This code often indicates two circumstances, which are:

1.  Shortage of units
2.  List cost issue

Shortage deductions are reasonably easy to dispute using a [**Bill of Lading**](https://supplierwiki.supplypike.com/articles/bill-lading-bol-supplypike/) and relevant EDI documents showing that the supplier delivered the order in full.

### Stop Payment (SP)

**Stop Payment (SP)** is only applicable where reissued checks are concerned. Typically, Kroger only honors this request for checks that suppliers haven’t received within 30 days. This kind of information is readily available on the Kroger program too.

However, suppliers have to check the document known as “Stop Payment” for all the information they need to submit this claim. The paper addresses all the nuances regarding such a request, which helps suppliers to avoid mistakes.

### Wrong Vendor (WV)

Yes, wrong vendors are a thing in the transactions between Kroger and suppliers. Some vendors receive deductions or payments wrongly. Here, the **Wrong Vendor (WV)** deduction code refers to those whose Supplier ERP ID details are different from what’s in the system.

What you should know about Kroger deductions
--------------------------------------------

First, it’s important to state that the deductions can be erroneous to all accounts payable. Even if they aren’t, the infractions that forced Kroger to cite them in the first place could be wrong. That explains why suppliers have to know not only the deductions but also the infractions. 

If you feel like disputing, then you should follow your instincts. Fortunately, Kroger has enough personnel to handle such disputes. We will go over how to create claims for deductions in [Lavante](http://www.lavante.com/) in another article.

Other than that, you could also get in touch with Kroger through DemandTec, an online service that it works with to provide suppliers with information on Kroger deduction types. You should email [vendorportal@kroger.com](mailto:vendorportal@kroger.com) to register for DemandTec. 

The email you send to the above address should contain some pertinent information. These include your company’s name, the name of your company’s contact person, email address, phone number, and mailing address. 

After registering, you should now be in a position to access all details regarding the different Kroger deduction types. If you don’t understand, don’t hesitate to ask Kroger for clarification to prevent erroneous deductions. 

See your deductions data in action
----------------------------------

With [**SupplyPike and SPS Commerce**](https://www.supplypike.com/spscommerce), you can use your EDI data to get complete visibility into your deductions and even create claims on them. See your data in action today!

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What Are the Different Types of Kroger Deductions?

Learn about:

*   Creating a dispute in Lavante
*   Updating a claim in Lavante
*   How to ask questions and make comments on claims

* * *

Kroger suppliers use the Lavante portal for all their deductions needs. Suppliers can efficiently complete a deduction claim within Lavante. Support services also are available to assist suppliers with this process.

[**Lavante**](http://www.lavante.com/company/faq/) leads the way in solutions for supplier management, delivering a new standard in efficiency to improve supplier communication, assuring data quality, and quickly driving dollars to vendors’ bottom line.

What is a deduction?
--------------------

Deductions, also known as chargebacks, are charges from retailers to suppliers resulting from an issue in the supply chain. **[Retail deductions](https://supplierwiki.supplypike.com/articles/what-are-the-different-types-of-kroger-deductions/)**, fines, and chargebacks are all options for potential claims.  

How to create a deduction claim in Lavante
------------------------------------------

The step-by-step instructions to make a deduction claim are easy to follow. Suppliers create a claim by following the online directions in the Lavante portal. 

Lavante users who are a broker or have multiple Kroger accounts and can access the Lavante portal will be able to access all of their accounts. In the Lavante platform, suppliers must make sure they select the proper account.

### Creating a claim on a payment

If a deduction occurs on a paid invoice, suppliers can access Lavante and dispute it if it’s invalid.

1.  The supplier should click the “**Transactions and Payments**” tab to begin disputing. Suppliers may also access non-promotional invoices on the homepage. 
2.  On the Lavante homepage, there will be a list of all invoices paid on that account. The supplier must use the **payment reference number** as the check number. 
3.  Once selected, there is a list of paid invoices. If there are multiple paid invoices on that check, the supplier sees them all. 
4.  The supplier needs to click on the hyperlink to create a deduction claim for that reference number.
5.  Once the supplier clicks on that hyperlink, the supplier receives the details of the invoice and payment. The supplier also finds the invoice number used for the claim. 
6.  When deductions happen on the selected account, the supplier has access to data referring to any associated promotions, deductions, and claims. This information is helpful for Kroger representatives as they review the claim.  
7.  The supplier must click “**Create Claim**” to begin the dispute process 
8.  The supplier then selects the correct payment reference number and invoice number. This information shows the deduction amount and paid amount. 
9.  Next, the supplier selects the claim type.
10.  The supplier needs to put in the correct deduction amount in the dropdown menu. The Kroger team will send a correction update to the supplier if they chose the wrong claim type or put in the wrong amount. 
11.  The supplier must be as descriptive as possible, explaining why they are creating the claim and what happened on this payment. The explanation should go into the **Description text box**.
12.  Once the supplier enters all necessary information and supporting documentation, they have to click “**Save and Submit**” for Kroger to review the claim. 
13.  Lastly, the supplier can return to the homepage to see the newly created dispute.

### Viewing claims in Lavante

The homepage is where the supplier receives the claim ID. To view a particular claim, suppliers can scroll over the claim ID for the hyperlink and view the claim created in that account. The default shows all claims.

Suppliers can select “**My Claims**” to see individual claims. If suppliers save a claim as a draft, it remains in open status, and only the supplier can review it, not Kroger. Hover over the payment reference number to view the created claim before submitting it.

### Supporting documents

If a supplier or Kroger representative adds documents, they are attached to the claim. Documents can include deduction details, files, and notes. Suppliers must search for supporting documents. 

Additional documents uploaded to the portal might include the [**bill of lading**](https://supplierwiki.supplypike.com/articles/bill-lading-bol-supplypike/) or signed proof of delivery. Suppliers select either private or public viewing. If the supplier chooses the private option, **Kroger representatives cannot review the claim**. Suppliers must select the public viewing option to enable Kroger to review the claim.

### What could cause issues with my claim? 

If a supplier finds a **grayed-out “Create Claim” button**, they can hover over the button to learn why. Suppliers can only create a claim on payments made no more than six months from the payment date. 

Another reason suppliers would not be able to create a claim could be a pending open shortage claim. Kroger does not allow more than one claim on one invoice or payment pending for a supplier. It must be in a closed status to create another shortage claim. 

[**_Related Reading: What Compliance Requirements Does Kroger Have?_**](https://supplierwiki.supplypike.com/articles/what-compliance-requirements-does-kroger-have/)

Claim statuses
--------------

There are three types of claim statuses that suppliers will see in Lavante. They are:

*   Open
*   Pending
*   Closed

### Open status

A claim stays in the **Open status** if the supplier has not submitted it to Kroger for review. The claim is still in the supplier’s box for edit and review. 

### Pending status

A claim goes to the **Pending status** if the supplier has submitted the claim and it is awaiting review. Once submitted, suppliers cannot edit the claim. When suppliers have a question on a pending claim, they can go to the dispute and ask a question. 

A claim with a pending update status happens when Kroger requests an update to the existing dispute. 

### Closed status

A claim goes into the **Closed status** after review, and Kroger has determined a resolution. Resolution options include paid, partially paid, or denied. A partially paid claim does not mean a paid claim. Suppliers may ask questions on closed claims. Suppliers also might want to know why a claim was denied or is pending from accounts payable. 

Asking questions and making comments on a claim
-----------------------------------------------

When a supplier submits an inquiry, the question appears in the top right corner with a “Q” beside it. The answer from a representative will appear underneath. Kroger representatives answer the question and add documents, and the supplier receives a notification. 

Suppliers cannot ask another question if Kroger has not answered a previous question. Suppliers can click on the three dots (aka the “kebab”) beside an existing query to make edits to it. 

Kroger receives notifications when suppliers ask questions. However, comments do not provide notifications to Kroger. Suppliers must distinguish between the two. 

Exporting payment details 
--------------------------

Suppliers may export their payment details, such as questions, answers, comments, and invoices, by clicking on the “**Export**” tab within Lavante. All claims documents export as PDFs. 

How to update a created claim
-----------------------------

Suppliers may update a created claim by clicking on the hyperlink for it. The supplier will see the claim’s creation date, a claim resolution, and the approval history. Suppliers receive an email from the platform informing them that it requires an update. 

Updating a claim might include changing the claim type. When suppliers log into the platform, there is a notification called **Task Description** that shows them expectations. Suppliers adding a document should make it public for review.

Conclusion 
-----------

Kroger suppliers complete all shortage deduction claims in the Lavante portal. This easy-to-use platform offers step-by-step instructions to submit a claim.

The Kroger support team is available to assist suppliers and provide the claim’s status and any supporting documents within the portal. Suppliers can hover over hyperlinks to review their claims before submitting them.

Fight invalid deductions with 1-click claims
--------------------------------------------

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How to Create a Deduction Claim in Lavante

Deductions with Kroger

Learn about:

*   Kroger’s different compliance requirements
*   Labeling, packaging, display regulations
*   How to comply with Kroger’s shipping standards

* * *

Is it time to expand product distribution with Kroger stores? Before sending the first order, be sure to learn about Kroger’s compliance requirements to help everything go smoothly. Here’s what [**Kroger vendors and suppliers**](https://supplierwiki.supplypike.com/articles/how-do-i-become-a-kroger-supplier/) need to know.

Case Fill Rate
--------------

Orders going to Kroger need to follow the **Case Fill Rate metric**. The Case Fill Rate refers to the number of cases a vendor ships compared to the number the supermarket ordered. Kroger will charge a non-compliance fee to orders that don’t meet this metric.

ORAD Compliance
---------------

ORAD stands for the **original requested arrival date**. If a vendor has a [**purchase order**](https://supplierwiki.supplypike.com/articles/finding-the-right-purchase-order-edi-850-vs-edi-875/), it should determine the best date for order arrival. However, Kroger will charge a non-compliance fee on orders that don’t arrive by that original date.

Suppliers must ensure that orders get out in time in compliance with this requirement. If one order arrives late, the supplier should consider adjusting the timeline for future orders.

On Time Compliance
------------------

Orders arriving at Kroger will have an appointment time, and there is some flexibility. However, the order needs to arrive fewer than two hours before or half an hour after the appointment. If the arrival occurs outside of that window, Kroger will charge a non-compliance fee.

To avoid non-compliance, suppliers should choose a window of time that works best. That way, Kroger can process the order, and the vendor can avoid fees.

Product Unavailable
-------------------

If a product is unavailable indefinitely, the supplier must inform Kroger of the change. The supplier should also offer accurate recovery information to help Kroger find a solution. If the issue is big enough to affect **[planograms](https://supplierwiki.supplypike.com/articles/what-is-a-planogram-and-how-is-it-used/)**, Kroger will charge a service fee to cover the difference.

Product unavailability can happen for many reasons.

*   Product recall
*   Manufacturing delays
*   Shipping issues
*   Packaging problems
*   Ingredient issues

However, this policy doesn’t apply to short-term product unavailability.

Universal Product Code or Global Trade Item Number (UPC/GTIN)
-------------------------------------------------------------

Every item that comes to Kroger needs to have a **readable barcode** on the package. Barcodes must follow format regulations regarding size, clarity, location, and color. The UPC or GTIN must be scannable, and employees should be able to read the item code.

Products that are exempt from barcode requirements include:

*   Produce
*   Bulk products
*   Newspapers

When a substitution is necessary, the vendor must send Kroger an email for permission. Vendors also need to provide written notice of any changes to UPC barcodes. Kroger requires **at least 90 days** to make any changes or add new barcodes.

[**_Related Reading: What Are the Different Item Codes?_**](https://supplierwiki.supplypike.com/articles/what-are-the-different-item-codes)

Product Regulations
-------------------

Aerosols, batteries, over-the-counter drugs, pesticides, personal care products, and certain other products must follow [**WERCSmart regulations**](https://www.thekrogerco.com/vendors-suppliers/regulatory-compliance-assessment-wercs/), which are part of the Underwriters’ Laboratory (UL). These regulations ensure that the products are in compliance and are safe to sell at Kroger.

Vendors must register products that UL regulations cover, and it doesn’t matter if the products are private label or white label. Suppliers can view [**UL standards**](https://ulstandards.ul.com/) to ensure products meet Kroger’s requirements.

Case Labeling
-------------

When labeling a case, the label needs to be readable by a grocer or customer four feet away. It also must contain the following information:

*   Product name
*   Barcode and barcode number
*   Best by/sell-by date
*   Pack count and pack size
*   Label for hazardous substances

Labeling requirements for general merchandise and apparel also include:

*   Vendor name
*   Invoice number
*   Style or stock number
*   Kroger name, address, and purchase order number

The case label must be visible from the outside. Other labels on the packaging must follow these same regulations regarding visibility and size. When labeling hazardous materials, the labels must comply with the [**Federal Hazardous Substance Labeling Act (FHSA)**](https://www.cpsc.gov/Business--Manufacturing/Business-Education/Business-Guidance/FHSA-Requirements).

Suppliers must pack and label cases for individual stores. Full cases can go to the distribution center and can have the markings for that. Without an approved carton level, the labeling must include the Kroger name, address, and purchase order number.

Product Preparation
-------------------

Vendors should follow directions from the Kroger purchase order when preparing products. Requirements include printing and applying tickets with the product information and applying hangers using the purchase order instructions.

Tickets must include the price, SKU (stock-keeping unit), class, and UPC. Each ticket needs to go on the correct product and in the right place for each particular item.

Custom pre-pack and package products must include the correct number of units and the case and inner pack quantities. Vendors should presort packages based on the agreement, and they should only ship full packages.

Packing Lists
-------------

Vendors also need to include a **packing list** that consists of the following:

*   Purchase order number
*   Order and shipment quantity
*   UPC
*   Vendor style or stock number
*   Customer address

Softgoods products also need to include:

*   Size
*   Color
*   SKU number
*   Total quantity by style. 

When packing orders in multiple boxes, vendors need to mark the box containing the packing list.

Code Date Guidelines
--------------------

When shipping perishable items and other foods, shipments should also follow guidelines for dates. Products should cover the type of **code date**, such as:

*   Sell by
*   Best by
*   Use before
*   Expiration

Perishable foods should have this information on the main display, and other items should have it somewhere visible. The text should be easy to read, and it should **not** be on a panel that customers remove when opening the package for use. The text should stand out from the background, and it should be at least 12-point font.

Packaging of Products
---------------------

Vendors should **package products** so that they comply with ergonomic requirements, whether they’re [**consumable packaged goods (CPG)**](https://supplierwiki.supplypike.com/articles/defining-consumer-packaged-goods-cpg/) or not. Packages should be easy to manage regarding weight and dimensions. Kroger may also request vendors use clamshell packaging for certain products at risk of theft.

Packaging Cases
---------------

Because Kroger automates a lot of the distribution process, suppliers must also follow specific regulations when **packaging cases**. Vendors must comply with requirements regarding the case, pallet, and slip-sheet or tie-sheet specifications. If problems occur multiple times with the same orders, the vendor will need to change the packaging to comply.

Display Requirements
--------------------

Products must also comply with the display requirements from Kroger. Each display type has dimension and weight requirements that suppliers must meet. Additionally, the grocery giant has specifications for its suppliers’ palleting and carton labeling. Read more on Kroger’s complete [**list of display requirements**](https://www.thekrogerco.com/wp-content/uploads/2017/09/kroger-display-guidelines.pdf).

Shipping Guidance
-----------------

The [**Bill of Lading (BOL)**](https://supplierwiki.supplypike.com/articles/bill-lading-bol-supplypike/) should include all purchase order numbers. Vendors need to mark the BOL and each carton with the full shipping address. If the shipment is to go somewhere other than what the purchase order shows, vendors must call Kroger for information. Kroger also requires vendors to give contact information to help track shipments.

Delivery Requirements
---------------------

Prepaid vendor shipments require **a delivery appointment** to bring packages into the distribution center. The vendor needs the following data to schedule an appointment:

*   Purchase order
*   Delivery address
*   Load information
*   Carrier name

Load information includes weight, number of cases, and other relevant information.

Unloading shipments should follow Kroger’s requirements, and the vendor is responsible for the cost. Vendors should contact Kroger to help follow company policies.

Suppliers and vendors must ship items based on the date of the purchase order. Purchases orders must arrive in full. Kroger doesn’t accept backorders except with written approval from a Kroger representative.

Customer Pickup Fuel Allowance
------------------------------

Kroger requires a **diesel fuel allowance** from all vendors. This allowance covers any shipment of products that Kroger makes between the distribution center and grocery stores.

Returns
-------

Shipping terms for items that customers return depend on Kroger’s location, freight, and collection.

Salvage Terms
-------------

All Kroger vendors must sign and return a **Reclamation Agreement**, and vendors must comply with the reclamation policy. Suppliers must update the agreement at least once per year but also whenever they make significant line changes.

In review
---------

Knowing Kroger’s compliance requirements is essential for new vendors. Whether a vendor sells produce, apparel, or something else, it needs to follow Kroger guidelines. Ignoring those guidelines can result in Kroger charging a non-compliance fee. Be sure to understand the requirements before sending the first shipment.

Use your data to stop non-compliance
------------------------------------

With SupplyPike’s [**partnership with SPS Commerce**](https://www.supplypike.com/spscommerce), Kroger suppliers can now leverage their data and fight invalid chargeback from non-compliance. Use your data to track issues with compliance and get paid in full.

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What Compliance Requirements Does Kroger Have?

Learn about:

*   Kroger’s vendor code of conduct
*   Vendors and third parties
*   Kroger supplier audits

* * *

Kroger Co. is one of the **largest and best-known grocery store chains** in the U.S. Vendors work hard to get their products into the supermarket giant. They get brand recognition, along with a new place to market their items. It’s a winning situation for suppliers they don’t want to lose.

Kroger has a **vendor code of conduct** that suppliers must follow at all times. Here’s what vendors need to know to keep their products in Kroger stores.

Kroger Vendor Code of Conduct 
------------------------------

The supermarket chain has a clear [**vendor code of conduct**](https://www.thekrogerco.com/wp-content/uploads/2017/09/code-of-conduct.pdf) to which it expects every supplier to adhere. The rules are easy to understand and simple to follow. Some vendors already apply them to their daily lives outside of Kroger.

### Follow all country, state, and local laws 

Vendors associated with Kroger Co. must **follow all laws of the area in which they do business**. Kroger includes federal, state, and local laws in the U.S. and any regulations that apply to overseas sales.

The laws include **health**, **vendor safety**, **work conditions and hours**, **immigration**, and **sales tax**. Kroger also expects suppliers to meet all **environmental regulations**.

Kroger’s vendor code of conduct also covers laws regarding:

*   The supplier may not use child, involuntary, or prison labor. The code also applies to vendors with products in overseas locations.
*   Vendors with employees must provide safe working conditions and adequate pay, including overtime when applicable. Working hours and breaks must also follow local laws.

### No discrimination

Whether it is a Kroger associate, another vendor, or a supplier’s employee, **discrimination** is against the company’s code of conduct. Every Kroger supplier must **treat everyone fairly and with respect**.

Kroger does not tolerate discrimination due to color, race, gender, religion, age, sexual orientation, or disability.

Kroger Co. also expects suppliers to create and maintain a work environment **free from threats and harassment**. The code of conduct for vendors prohibits:

*   Threatening and/or abusive behavior.
*   Coercing behavior towards employees or vendors.
*   Allowing employees to choose to not associate with a person or group based on personal prejudices.

### Fair employee wages 

Vendors with employees must meet or exceed **industry wage standards**. Vendors cannot underpay employees or force them to work without adequate compensation.

Suppliers must also **file taxes** on employees whenever applicable.

### Employee legality 

Kroger requires all vendor employees in the United States to show **proof of legal residency**. The federal law applies to Kroger suppliers with one or more employees.

Before a vendor can send its employees into Kroger to stock, promote, or sell the products, **work authorization documentation** is necessary for each worker. The supplier needs to have the paperwork for each employee on file and ready to supply the information if Kroger asks.

**_[Related Reading: How Do I Become a Kroger Supplier?](https://supplierwiki.supplypike.com/articles/how-do-i-become-a-kroger-supplier/)_**

Vendor conduct in Kroger stores
-------------------------------

The Kroger Co. vendor code of conduct covers suppliers’ behavior in the grocery stores. It also applies to any employees the vendor sends in its place. Kroger strictly prohibits vendors from **influencing Kroger associates**.

Suppliers want their items in prominent places, but there’s not enough room to showcase every store vendor. It’s tempting to offer bribes in the form of cash payments or business gifts, but the practice goes against the Kroger supplier code of conduct. The code states that vendors cannot engage in conduct that appears improper or presents a possible conflict of interest.

Overseas vendors also must adhere to the [**U.S. Foreign Corrupt Practices Act of 1977**](https://www.justice.gov/criminal-fraud/foreign-corrupt-practices-act) and its amendments. The act prohibits vendors from offering bribes, gifts, or other incentives to a government or its representatives to do or obtain business in the country.

Kroger vendors and third-party contractors 
-------------------------------------------

The Kroger supplier code of conduct has a section that covers the behavior of vendors’ **third parties**, including:

*   Contractors
*   Subcontractors
*   Labor
*   Manufacturing facilities
*   Distributors
*   Associates
*   Suppliers
*   Partner organizations and affiliated companies

Kroger expects any third party involved with a Kroger vendor to follow the same code of conduct as the primary supplier.

Under Kroger’s conduct code, the vendor’s responsibility is to ensure third parties follow each item of the code. It includes the workplace environment and abiding by all federal, state, and local laws. Overseas third parties also need to follow the country’s regulations.

Kroger vendor audits 
---------------------

The final part of the Kroger vendor code of conduct states that suppliers will allow the company to **perform routine compliance audits**. An associate from Kroger Co. or a certified third party will conduct the audit. The choice is up to Kroger on who conducts the audit.

It’s **not a financial audit**, so vendors do not need to get a lot of paperwork in order. They will need to disclose employee records on the legality of them working in the United States. Kroger may also request employee reprimands, though usually only when there is a **conduct complaint**.

If the auditor finds compliance issues, it doesn’t mean that Kroger automatically terminates the vendor. **Consequences depend on the infraction and the supplier’s response.** If the problem is a vendor employee, the supplier may need to terminate the worker before Kroger considers it in compliance.

More severe offenses like **unsafe working conditions**, **rampant discrimination**, or **ignoring laws** often result in the vendor’s suspension or termination from the Kroger program.

It makes sense to follow the Kroger vendor code of conduct 
-----------------------------------------------------------

Kroger Co.’s code of conduct for its vendors is similar to ones used by other companies that bring in outside suppliers. The code helps ensure that the company brand remains **consistent**, and customers get the shopping experience they expect.

The rules laid out in the conduct code are straightforward and easy to understand. Most apply to laws and regulations vendors follow whether or not they have employees.

Having products in Kroger is a boost in sales for any vendor, and once the items are on the shelves, no one wants to see them taken down. Following the code of conduct for suppliers helps ensure that vendors can continue to market their items in Kroger stores.

Fight compliance deductions with data
-------------------------------------

SupplyPike has partnered with **SPS Commerce** to help Kroger vendors get visibility and fight invalid deductions. Learn more about how we leverage your data to help you succeed at Kroger.

Visit the [**SupplyPike-SPS partnership page**](https://www.supplypike.com/spscommerce) for more information!

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Kroger Vendor Code of Conduct

Learn about:

*   Kroger’s National Food Reclamation Policy
*   Kroger’s National NonFood Reclamation Policy
*   Kroger’s Policy on Recalls or Product Withdrawal

* * *

In 2018, Kroger founded its [**Zero Hunger | Zero Waste**](https://www.kroger.com/f/zero-hunger-zero-waste) Foundation and initiative to “create communities free from hunger and waste by 2025.” Once the grocer created the foundation, Kroger also updated and changed many of its policies around food waste, product reclamation, and donations. 

These changes affected the Kroger food and nonfood reclamation policy. If you are interested in [**becoming a Kroger supplier**](https://supplierwiki.supplypike.com/articles/how-do-i-become-a-kroger-supplier/), it’s a good idea to get familiar with its reclamation policies first.

This article reviews the details of Kroger’s **food and nonfood reclamation policies**, how it calculates reimbursements, and how it affects the cost and burden on Kroger suppliers. 

It is important to note with both food and nonfood reclamation, Kroger will default to a billable reclaim agreement if the vendor has not established swell allowances or reclaim policies. 

Kroger’s National Food Reclamation Policy
-----------------------------------------

Since its national Zero Hunger Zero Waste initiative, Kroger **no longer destroys unsaleable products** except in what they deem “extraordinary circumstances.” Even in those extraordinary circumstances, Kroger Company must give prior approval before product destruction. The supermarket giant’s goal is to reduce waste and landfill use. 

Kroger also claims it will work together with the vendor to mitigate costs of product destruction. It encourages its vendors to participate in reducing waste, which applies to both the Kroger food and nonfood reclamation policy. 

In the case of unsaleable or damaged food products, the following guidelines apply. 

### Reimbursement Guidelines for Food Items

When Kroger deems a product as damaged or unsaleable, it will calculate the total cost of reimbursement based on the item’s financial cost billing (FCB) costs plus the total cost incurred by Kroger in moving the product through the supply chain of distribution. 

Kroger puts the additional costs incurred through the supply chain into three separate categories:

*   **Pre-Damage Direct Product Costs (DPC)**: DPC refers to any costs incurred during the distribution process *before* Kroger identifies the damage and moves the product out. DPC could include warehouse expenses, transport to the retail site, and costs at the grocery or retail store itself. DPC is always 6% of the product’s total cost.

*   **Post-Damage Handling Costs (PDC)**: PDC refers to any costs incurred once Kroger identifies the damage but before the item arrives at the reclamation center. These costs include supermarket or grocer expenses, storage, and transport costs.

*   **Reclamation Center Costs (RCC)**: RCC costs are any costs that occur at the reclamation center. In most cases, the supplier can choose how to handle or dispose of the product to control some of those costs.

### Various Processing Chutes

The supplier can choose specific processing methods and logistics. Each processing chute will incur different fees.

Kroger provides a table of costs from 2019 comparing various processing chutes:

| Processing Chute       | DPC    | PDC    | RCC    | Total Cost |
|------------------------|--------|--------|--------|------------|
| Scan & Center          | $0.060 | $0.128 | $0.120 | $0.328     |
| Scan & Donate          | $0.060 | $0.128 | $0.180 | $0.388     |
| Scan & Hold for Review | $0.060 | $0.128 | $0.250 | $0.458     |

_Kroger’s Table of Costs by Processing Chute_

Kroger vendors will also be responsible for freight charges if they choose “_Scan & Hold for Review_.”

### Hazardous Material Costs

Kroger’s policy includes an addendum for any hazardous materials and hazardous waste. The state and federal governments define hazardous waste, and suppliers and retailers must handle this type of waste according to governmental regulations.

Handling and disposing of hazardous materials incur a high extra cost, including compliance with government regulations, additional equipment like hazmat suits, and sometimes specialty disposal or storage. 

When suppliers need to dispose of damaged, returned, or unsaleable products, Kroger will charge **up to $3.00 more per item for hazardous materials**. According to the addendum, Kroger will invoice the vendor for these fees monthly, outlining the total number of items processed for disposal, as well as any additional costs incurred.

### Feeding America Partnership

As part of its Zero Hunger Zero Waste initiative, Kroger has a partnership with Feeding America. Feeding America is a nonprofit organization working to end hunger through a network of food banks across the United States. The organization partners with Kroger to donate reclaimed food and distribute it to communities in need.

Kroger encourages their vendors to consider a similar donation plan as well. 

[**_Related Reading: What Compliance Requirements Does Kroger Have?_**](https://supplierwiki.supplypike.com/articles/what-compliance-requirements-does-kroger-have/)

Kroger’s National Nonfood Reclamation Policy
--------------------------------------------

What about general merchandise or any nonfood products?

If one of Kroger’s vendors doesn’t have its own standard reclamation policy, Kroger will apply its national nonfood reclamation policy as a default. Any prior agreements about the disposal of unsaleable or damaged products are subject to this policy.

### Reimbursement Guidelines for Nonfood Items

Reimbursement for nonfood items is very straightforward and applies to damaged, returned, or unsaleable products. Kroger calculates reimbursements based on the unit’s total cost plus any fees or costs incurred in the unit’s movement through the supply chain. 

Additional handling or storage at a Reclamation Center will also incur fees for the vendor. The total reimbursement depends on the agreement each vendor has set up. Let’s look at the various options.

### Agreement Options Available to Suppliers

To give suppliers more flexibility, Kroger traditionally provided four different options:

*   **Automatic Disposition**: Kroger scans the product and bills the vendor for the full price plus a 9% handling fee. Kroger will then dispose of the product or determine the reclamation process.

*   **Off-Invoice Disposition**: This applies to any unsaleable product that goes beyond the agreed-upon amount in the off-invoice percentage. Kroger will scan and bill the vendor for the full cost of these units plus a 10% handling fee. Kroger will then dispose of the product or determine the reclamation process.

*   **Hold for Automatic Return to Vendor**: Kroger scans the product and bills the vendor for the full price plus a 10% handling fee. After invoicing the process, Kroger holds the product for an automatic return to the vendor. The vendor must pay any freight charges.

*   **Hold for Return to Vendor – Return Authorization from Vendor Required**: Kroger scans the product and bills the vendor for the full price plus a 12% handling fee. Kroger holds the product until the vendor sends a return authorization and then returns the product to the vendor. Kroger sends the authorization within 21 days. The vendor must pay any freight charges.

As of 2018, Kroger has suspended the first two options to protect its Zero Hunger Zero Waste commitments. If a manufacturer wants Kroger to destroy the product, it must choose one of the two “Hold” options and have the item returned to its site for disposal.

Kroger’s Policy on Recalls or Product Withdrawal
------------------------------------------------

If there is a [**product recall**](https://supplierwiki.supplypike.com/articles/what-do-i-do-when-my-product-has-a-recall/) or withdrawal from the market, Kroger requires that the vendor receive the products back. 

Kroger will send an invoice, and then the vendor should send a return authorization within 21 days. If the vendor doesn’t meet this 21-day deadline, Kroger will automatically deduct the cost and determine the next steps. Kroger adds deductions to an automatic handling fee of 12% for any returned products.

Any products that are leaking or broken may pose a threat to environmental or transport safety regulations. Kroger’s policy is to manage this waste at the retail store and not transport them. All other fees incurred by a product recall or withdrawal are the responsibility of the vendor.

If you’re a new Kroger vendor or hoping to become a supplier, understanding the Kroger food and nonfood reclamation policy is critical to a long partnership.

Leverage your data for deductions insights
------------------------------------------

[**SupplyPike and SPS Commerce**](https://www.supplypike.com/spscommerce) are working together to bring visibility into Kroger suppliers’ deductions data. Learn more about how we can help you fight invalid deductions with 1-click disputes.

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Check out [**our partnership page**](https://www.supplypike.com/spscommerce) for more information!

Kroger’s Reclamation Policies

Learn about:

*   Kroger’s compliance program for import vendors
*   Product and shipping compliance standards
*   Documentation compliance

* * *

Kroger requires all import vendors who do business with it to follow its compliance standards. Vendors who cannot comply with these standards may have entire shipments rejected and subject to an inspection.

The grocer put these standards in place for the safety and security of Kroger’s customers, employees, and vendors. The Import Vendor Compliance Program is a comprehensive guide for import vendors to follow during all steps of the import process. 

What are Kroger’s compliance standards for Import Vendors?
----------------------------------------------------------

We can break down the essentials of Kroger’s Import Vendor Compliance Program into two main facets. One is the general compliance that vendors have to follow throughout the shipping process, and the other is proper documentation. 

General compliance for vendors falls into three categories:

*   Social compliance requirements
*   Product inspection and testing
*   CTPAT (Customs Trade Partnership Against Terrorism)

Proper documentation for vendors falls into two categories:

*   Commercial documents
*   General Certificate of Conformity

These five sub-facets make up the majority of Kroger’s Import Vendor Compliance Program. 

Import Vendor Compliance Standards
----------------------------------

Here is a breakdown of each sub-facet of Kroger’s Import Vendor Compliance Program.

### Social Compliance Requirements

All import vendors will be subject to a social compliance audit to ensure that their manufacturing facilities treat all their workers fairly. The safety and labor conditions are critical factors taken into consideration when Kroger chooses their partners. 

**ELEVATE** and **Underwriters Laboratory** will always conduct the **Kroger Social Responsibility Audit**. The foreign location that undergoes an audit will need to pay to have the Kroger Social Responsibility Audit performed. Kroger has negotiated reduced prices for suppliers. 

The purpose of these audits is to ensure that Kroger is never profiting from unfair or unjust labor. A failed score will require corrective action. Any audit met with severe violations will need the vendor to have another audit done within four to six months to confirm these violations’ rectification.

### Product Inspection and Testing

All general merchandise, grocery items, and general cargo expected to be for sale in Kroger stores have to not only meet Kroger standards on quality, safety, and performance but must also conform to all U.S. Federal and State regulations, standards, bans, and rules. 

Kroger import vendors must test all items at least one month before their shipping date. Responsibility for testing arrangements falls on the vendor to organize and ship. A test report will be valid for one year unless there has been a change in production within that year. 

**Bureau Veritas (BV)** is the Kroger-nominated testing laboratory. Import vendors should send all tests through approved BV lab locations. 

Failed tests will require the supplier to submit a root cause analysis to Kroger and a **corrective-action-preventive-action (CAPA) plan** to prevent further issues in the future while also bringing the current product up to respectable standards. 

### CTPAT (Customs Trade Partnership Against Terrorism)

Kroger works closely with **CTPAT (Customs Trade Partnership Against Terrorism)** to ensure that the trade industry remains safe from terrorists to maintain the economic health of the U.S. and its neighbors. The goal is to continuously improve security — not just at entry points to the U.S. but also at any facility involved with CTPAT globally. 

Before shipping cargo to the U.S., the shipment must go through a security audit performed by a third-party agency associated with CTPAT. Acceptable agencies include **SGS**, **Bureau Veritas**, and **GSV**. Kroger should receive this report before the shipping of any cargo. Vendors are responsible for these security audits. 

Some standards that Kroger and CTPAT look for are:

*   Personal Security
*   Storage & Distribution
*   Physical Security
*   Shipment Information Controls
*   Records & Documentation
*   Information Access Controls
*   Contractor Controls
*   Export Logistics

If the vendor does not meet these standards, customs will not allow these shipments to enter the U.S., much less make it to a Kroger facility.  

**_[Related Reading: How to Set up EDI with Kroger](https://supplierwiki.supplypike.com/articles/how-to-set-up-edi-with-kroger/)_**

### Commercial Documents

Kroger requires import vendors to prepare several documents for each shipment to verify the customs details, regulatory compliance, product safety, and purchase order information for the cargo. Kroger’s freight forwarder, UPS, will request these documents at the time of booking a shipment.

The required documents for all shipments include:

*   Commercial invoice
*   Packing list
*   Certificate of material
*   Beneficiary’s certification
*   General certificate of conformity
*   Third-party test report(s)
*   Forwarder’s Cargo Receipt (FCR) or Bill of Lading

Some additional documents may be applicable:

*   Wearing apparel detail sheet
*   Lacey Act Declaration
*   Footwear detail sheet or interim footwear invoice
*   Preferential trade program qualifying statement
*   Federal Communications Commission (FCC) form

UPS must receive all commercial documents within four business days before the estimated day of arrival. 

### General Certificate of Conformity

The **General Certificate of Conformity (GCC)** is a listed necessity in commercial documents. Kroger will further elaborate on the GCC as it calls the certificate in all Letters of Credit and documentary open account applications.

A GCC must be in English. In it, it must state that products have met every applicable product safety standard. It must also note that products followed the regulations in the [**U.S. Consumer Products Safety Improvement Act of 2008**](https://www.cpsc.gov/Regulations-Laws--Standards/Statutes/The-Consumer-Product-Safety-Improvement-Act). 

A General Certificate of Conformity should also include:

*   Date of Certificate Issuance
*   Citation to each CPSC product safety regulation for which the certifying product
*   Identification of the product covered by the certificate
*   Identification of the U.S. importer (i.e., Kroger)
*   Date and location where product manufacturing took place
*   Date and location of the product testing (should include test report number)
*   Identification of any third-party laboratory on whose testing the certificate depends
*   If CPSC requires a Certificate of Conformity for adult and children’s products, there must be third-party test reports as well as the Certificate of Conformity. CPSC-approved laboratories must complete the test. 

Summary
-------

Kroger welcomes all sorts of vendors, but the grocery giant has strict regulations for its imports. Follow these guidelines and find success as an import vendor. For more information, including documentation and checklists, visit [Kroger’s Import Vendors page](https://www.thekrogerco.com/vendors-suppliers/import-vendors/).

Leverage your data to dispute chargebacks
-----------------------------------------

All Kroger suppliers may experience invalid deductions with Kroger’s compliance programs. Leverage your EDI data to fight these chargebacks. Learn more about our **Deductions Navigator** and how [we’re partnering with **SPS Commerce**](https://www.supplypike.com/spscommerce) to bring you 1-click disputes.

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Kroger’s Import Vendor Compliance Program

Learn about:

*   Kroger’s packing and labeling requirements for import vendors
*   Carton and container requirements
*   Barcode and marking requirements 

* * *

Kroger has almost 3,000 storefronts nationwide, so being an [**import vendor**](https://www.thekrogerco.com/vendors-suppliers/become-a-supplier/) for Kroger is an excellent way for a business to grow. Kroger has a set of specific guidelines for packing and labeling for its import vendors. 

The grocery giant set out new regulations for carton barcodes in 2021, which we’ll explain in plain English below. We’ll also touch upon other standards like season codes, mod codes, pallet labels, and more. 

All products must be store-ready before importing
-------------------------------------------------

Kroger requires that all products be “**store-ready**” before importing the goods. Store-ready packaging means that all imported products are **suitable for stock and sales** before the vendor sends them to the retailer. 

Since Kroger sells a handful of [**fast-moving consumable goods**](https://supplierwiki.supplypike.com/articles/defining-consumer-packaged-goods-cpg/#fast-moving-consumer-goods-fmcg), the grocer requires that all import vendors package their items in bulk so the Kroger team can stock them without handling any individual merchandise. 

For wearable materials (shirts, pants, etc.), all items must have a care label. A care label displays the item’s size, country of origin, fiber content, handling process, and a registered identification (RN) number.

All products must also have a Kroger-approved ticket and label before going to the storefront. 

Shipping carton requirements
----------------------------

Kroger has tight requirements when it comes to shipping cartons for its vendors. The company requires its vendors to use **double-wall corrugated layering**, and the cartons should have a score of **42 ECT** or greater on the **Edge Crush Test** index or a [**Mullen Bursting Test**](https://psimd.com/box-strength/) score of **#200**. 

Each carton’s weight can’t exceed 75 pounds, and Kroger requires that vendors don’t leave any space at the top or sides of the container. 

Container packing instructions
------------------------------

When vendors pack their cartons for shipping, there are a few instructions and guidelines Kroger provides. 

For starters, vendors can’t package items with different purchase order-level SKUs. The same goes for any Kroger locator numbers (KLNs) or PLNs. Vendors need to pack goods in a separate container based on their SKU value.

For clothing and apparel, vendors need to pack each set based on its weight and label it either “**scan on receipt**” or “**bulk**.” Vendors should aim to pack as “scan on receipt” whenever possible because items packed as “bulk” could be subject to chargebacks. 

### Scan on receipt requirements

There are three basic requirements for packs that are “scan on receipt”:

*   Items must be in a shipping container that meets Kroger’s burst strength requirements
*   Vendors cannot masterpack
*   Vendors cannot over-ship

### Bulk requirements

There are three basic requirements for packs that are “bulk”:

*   Each clothing set needs to be in a marked polybag
*   Vendors need to fit as many polybags into a container as possible (no extra space)
*   Containers for bulk shipping must meet Kroger’s burst strength requirements

Carton marking requirements
---------------------------

Vendors need to have two content markings on each side of the container. Kroger requires suppliers to have a set of product details included in each marking, such as:

*   The Kroger Company name
*   SKU or any other product identification number
*   Purchase order number
*   Quantity 
*   Country of origin
*   Carton measurements
*   Gross weight
*   Net weight
*   Item description
*   Number labeling for each carton

Vendors need to make sure that all carton labels are eligible, flat, and clean. Kroger recommends placing labels in the center of the container’s long side or the upper left corner. Vendors also have the option to buy pre-approved labels from [**Integra Trim**](http://www.integratrim.com/).

[**_Related Reading: Kroger’s Import Vendor Compliance Program_**](https://supplierwiki.supplypike.com/articles/krogers-import-vendor-compliance-program/)

Safety requirements 
--------------------

Kroger lays out safety marking requirements to help protect their stock team. Any container that weighs more than 50 pounds needs to have a clear **“dual lift” label**. 

The company also requires vendors to have the proper safety, hazardous materials (hazmat), or any other necessary warning labels based on the items inside. 

Barcode requirements (updated 2021)
-----------------------------------

Kroger now requires that each carton contains at least one scannable barcode and that each carton must be scannable upon arrival. To ensure cartons meet Kruger’s barcoding requirements, vendors can apply the following:

*   Make sure the barcodes are on a flat and smooth surface
*   Place the barcodes along the top of the carton where there’s no bend
*   Barcodes need to be a minimum size of 2 cm high by 4 cm wide
*   Apparel items can have labels with a SKU barcode, but other products require a different format
*   Vendors shipping bulk apparel items can place the barcode on the polybag or carton
*   “Scan on receipt” vendors can only place barcodes on the carton

Requirements for “direct to floor” display cartons
--------------------------------------------------

Some Kroger vendors ship their items in a carton that goes right to the sales floor or a “direct to floor” display carton. These cartons have specific requirements set by the Kroger management team for their import vendors. 

Direct-to-floor display cartons can’t use the same labeling as master cartons (ones that sit in the stock room). The direct-to-floor container needs to have its own separate markings, typically on the carton’s back and side. 

Vendors should never place labels on the front of the carton or anywhere that covers up pictures of the products inside.

Requirements for pallet labeling
--------------------------------

Kroger requires vendors to have two identical label markings for pallets. Each label goes on either side of the pallet and should contain the vendor’s name, where the shipment is going, and the order number. Vendors can use labels no smaller than 8 in x 11 in for Kroger’s inventory team to accept the pallet. 

For vendors shipping with ocean containers
------------------------------------------

Vendors shipping with ocean containers must package their cartons in a specific way to ensure they align with the [**Safety of Life at Sea convention**](https://www.imo.org/en/About/Conventions/Pages/International-Convention-for-the-Safety-of-Life-at-Sea-(SOLAS),-1974.aspx). As a result, all containers must meet the following requirements:

*   Weight must be evenly distributed throughout the container
*   The packer must place any necessary blocking or bracing within the container to prevent contents from shifting during loading/unloading
*   Floor load to ceiling

What do these requirements mean for Kroger Import Vendors?
----------------------------------------------------------

Kroger is constantly updating its requirements for import vendors to protect the integrity of their business. 

As a result, vendors need to always be on the lookout for new requirements or changes to the current Kroger packing and labeling guidelines. Any vendors that can meet all of Kroger’s expectations will have a greater chance of success.

Many of Kroger’s suppliers use special software to ensure all of their items meet the proper standards. Vendors can also reach out to Kroger’s regional teams directly for more detailed information about packing and labeling. 

Handling chargebacks
--------------------

Kroger’s compliance program can be strict and cause fees and fines. With SupplyPike’s new [**partnership with SPS Commerce**](https://www.supplypike.com/spscommerce), we bring you 1-click disputes for your invalid deductions. [Sign up today](https://www.supplypike.com/spscommerce)!

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Packing and Labeling for Kroger Import Vendors

Kroger Compliance Programs

Learn about:

*   Which EDI transactions Kroger requires
*   The workflow of Kroger’s EDI documents
*   How to comply with Kroger’s EDI standards

* * *

Thanks to recent transformations in the international supply chain, business transactions flow between computers more accurately and error-free than ever before. 

With the growing complexity of electronic documents, [**advance shipping notices**](https://supplierwiki.supplypike.com/articles/edi-856-ship-notice-manifest/), and purchase orders, it’s more important than ever for trading partners to exchange goods using [**EDI (Electronic Data Interchange)**](https://supplierwiki.supplypike.com/articles/what-is-edi-electronic-data-interchange/).

To cut processing costs and maximize transparency between vendors, Kroger has made EDI a top priority. In fact, Kroger has mandated that all its trading partners and suppliers use EDI. While it might seem complex at first to set up EDI with a large retailer like Kroger, getting started with EDI for new Kroger vendors is a relatively intuitive process.

Three basic steps are necessary for new vendors to follow to become EDI compliant with Kroger: 

1.  Learn about which EDI transactions Kroger requires
2.  Test EDI compliance
3.  Become familiar with Kroger EDI transaction rules

Using the correct EDI transactions
----------------------------------

First of all, it’s critical to have a little background familiarity with EDI and the reasons why retail giant Kroger has decided to streamline its shipping services with it. Essentially, EDI is a standardized and paperless format for transmitting business documents. 

For new suppliers to Kroger, EDI has the potential to cut order processing costs and eliminate data entry errors by not requiring re-keying data. EDI can also make down-to-the-second deliveries possible thanks to its ability to notify vendors of sudden shipping changes.

Adopting EDI in a CPG’s business can transform shipping efficiency and increase the reach of goods since everyone using EDI speaks the same standardized language. Therefore, it’s essential to know what types of that language Kroger uses in its day-to-day business operations.

Kroger requires the following EDI transactions:

*   **EDI 850** (Receipt of a **Purchase Order**)
*   [**EDI 810**](https://supplierwiki.supplypike.com/articles/explaining-edi-810-invoice/) (Sending an **Invoice**)
*   **EDI 812 (**Receipt of a **Debit Memo**)
*   **EDI 820** (Receipt of **Remittance Advice**)
*   **EDI 824** (Receipt of an **Application Advice** or error message)

Here, vendors can find [**the initial EDI partner set-up form**](https://edi.kroger.com/EDIPortal/NewPartnerSetup.html) for trading partners.

Furthermore, suppliers should be familiar with some of the differences between EDI Purchase Order forms since they are typically the supply chain’s starting point. 

Purchase Orders include legally binding information about price, discounts, and delivery terms. Vendors need to know the difference between [**the EDI 850 and the EDI 875**](https://supplierwiki.supplypike.com/articles/finding-the-right-purchase-order-edi-850-vs-edi-875). Kroger exclusively uses the EDI 850.

[**_Related Reading: Explaining EDI: 800 Transaction Codes_**](https://supplierwiki.supplypike.com/articles/explaining-edi-800-transaction-codes/)

How Kroger’s EDI transactional flow works
-----------------------------------------

The next step in the process is to learn how Kroger’s EDI platform works. Integrating a vendor’s workflow with Kroger’s in-house policies is quite simple to do. 

Kroger uses an intuitive web-based portal called **Webgate+** to streamline EDI transactions. The grocer includes a [step-by-step tutorial](https://www.edigateway.com/en/edi-kroger-tutorials/) on following its transactional flow – from Purchase Order (EDI 850) to receiving an Application Advice (EDI 824).

New vendors simply open a Webgate+ account, receive a Purchase Order, create a Return Invoice according to the Kroger template, then send it back. Just four steps and the CPG is off running as a vendor with Kroger. The workflow will look like this for most new suppliers:

1.  Kroger will send a potential new vendor who signs up on Webgate+ an EDI 850 purchase order.
2.  Before preparing a shipment, vendors will fill out an EDI 810, which is an electronic invoice. The process of sending the invoice is usually much faster than sending paper-based documents. Kroger issues payment upon receiving the 810.
3.  If credit or debit adjustments are necessary on the shipment, Kroger will send an EDI 812 to request charges and possible adjustments.
4.  Some shipments may also include an EDI 820, a memo that documents payer and payee information, bank account ID, invoice numbers, and other basic remittance details. The EDI 820 allows vendors to compare the final payment with the EDI 810 invoice.
5.  The last EDI transaction that Kroger will send is the EDI 824, which allows vendors to identify errors or corrections that showed up during the shipment as a whole or in the EDI documents themselves.

Testing EDI compliance with Kroger
----------------------------------

After vendors have signed in to Kroger’s Webgate+ online portal and set up an EDI account, Kroger automatically grants new users EDI production status. At that point, Kroger gives suppliers awarded with production status access to EDI 850 purchase orders, and they can begin to place orders with Kroger.

Joining Kroger EDI production status is an all-in-one process and grants vendors provisional compliance with all of Kroger’s EDI guidelines. It’s extraordinary how much freedom Kroger gives to its new partners – there is no testing required once they gain production status. However, vendors must take personal responsibility for remaining compliant.

Kroger recommends hiring a third-party EDI provider with the experience and vigilance to supervise vendor shipping compliance. There are many highly-trusted providers out there – such as [**SPS Commerce**](https://www.spscommerce.com/) – whom suppliers can employ as a stop-gap measure ensuring 100% compliance.

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Kroger’s EDI transaction rules FAQ
----------------------------------

Once vendors have received their first EDI 850, Kroger has formally opened a purchase order and will expect an EDI 810 invoice in return. Congratulations! 

At this point, vendors have completed setting up and EDI with Kroger. What remains is to become familiar with [**Kroger’s EDI requirements**](https://edi.kroger.com/EDIPortal/EDICompliance.html) and stay in compliance with transaction rules.

To help answer [some of the most common questions](https://edi.kroger.com/EDIPortal/FAQ.html) that new Kroger vendors ask, see the FAQ below:

### Can vendors consolidate several EDI 850s on the same invoice?

Unfortunately no, vendors cannot consolidate multiple purchase orders into one invoice. Vendors must complete a new invoice for each EDI 850.

### Does Kroger allow vendors to apply both allowances and charges to EDI 810s?

Yes, Kroger allows vendors to apply both allowances and charges to the invoice. The EDI 810 that Kroger uses allows for these adjustments on the same form. The EDI 810 must contain the adjustment at the **order level**, not the item level. The allowance amount should be a negative number.

### WIll Kroger allow a new vendor to ship an order without testing EDI documents?

It’s typical, though not ideal that vendors don’t have their EDI connections in place before the first order. Kroger will accept such orders, but the grocer will attach a notice giving new vendors without an EDI connection a deadline to establish one before holding them delinquent and issuing a fee.

### If I set up EDI with Kroger, does that mean I’m approved as a vendor with all of Kroger’s divisions?

There are no specific division requirements for purchase order, invoice, and application advice transactions among Kroger’s divisions. However, vendors must create a separate EDI connection for **Fred Meyer stores** (which will include Smith’s Food & Drug) and **Harris Teeter stores**. All other divisions fall under the original EDI transactions created for Kroger.

### For new vendors looking to adopt EDI in-house, can Kroger help set it up?

For vendors looking to incorporate EDI, the best resource for advice and instructions on creating a personal EDI system is the [**Uniform Code Council (GS1)**](https://www.gs1us.org). Vendors should keep in mind that Kroger prefers **VAN** connections (such as **AS1** and **AS2**) and does not work with **EDI-INT (EDI over the internet)**.

Conclusion
----------

In today’s high-speed marketplace, vendors are eager to join their supply chain with the largest companies. Luckily, Kroger, the U.S.’s second-largest retailer, is open to collaborating with CPGs of all sizes. EDI is one of the best ways to forge profitable connections within your supply chain – and it would be hard to find a better partner than Kroger.

Using EDI to dispute claims
---------------------------

Kroger is very strict around its EDI compliance, particularly with EDI 810s, and will deduct fines from payments. However, vendors can submit disputes to these claims utilizing EDI documents. [**SupplyPike has partnered with SPS Commerce**](https://www.supplypike.com/spscommerce) to create a one-stop disputing app for Kroger suppliers.

For more information, [visit our partnership page](https://www.supplypike.com/spscommerce).

[![Make the most of your EDI data. See more.](https://lh4.googleusercontent.com/xnL288g1hiQ8g3tACRsh5tOj_M1kbyUE2ZsotSrfWSY1RBJDntCfIkg9wn9F74DoHt5_e23ERukAKIRryQMU_ssemJ_wfgkmQFiD1DCFRdKv6_oBloXA7q3-N-cah4eaiuNDcB90)](https://www.supplypike.com/spscommerce)

How to Set up EDI with Kroger

Learn about:

*   Which EDI transactions commonly have issues
*   How to interpret an EDI error message from Kroger
*   Avoiding common EDI errors

* * *

**EDI (**[**Electronic Data Interchange**](https://supplierwiki.supplypike.com/articles/what-is-edi-electronic-data-interchange)**)** errors result when there is a problem with communication and data transfer between two computer systems. In modern business, when there’s a transaction from one company to another (companies are usually called a trading partner), then information is transferred via electronic communication. 

Most of these transactions are invoices and purchase orders. Historically, these documents were all on paper, but reducing paperwork helped accelerate data flow and ensure accuracy. 

For EDI systems to operate effectively, the information must be standardized. Standardization alone prevents most errors and eliminates some manual steps involved in business transactions, like keying in data. Overall, standardizing communication technology cuts processing costs and improves efficiency and schedule time.

However, there are still several common EDI errors that occur. This article will review some tips on avoiding the most common EDI errors with the Kroger store chain. 

The most common problems in electronic data interchange
-------------------------------------------------------

Most commonly, EDI errors occur in **purchase orders**, such as a store communicating with a supplier or in a discrepancy with the **invoice**. There can also be problems with **inventory shipments** arriving at the warehouse and disparities in how many items shipped. 

There are also growing problems with **business-to-business (B2B) networks,** and the volume received daily, given how many different companies are connected and what challenges standardization presents. 

Greater volumes mean a greater risk of missing fields or using older EDI formats, and these can cause errors. For example, some companies might use CSV, HIPAA, ANSI, XML, and many other formats – and if one system can’t understand the other, it becomes a problem, 

As opposed to manually catching the errors, automatic error detection has been the focus recently to help improve productivity. 

[**_Related Reading: How to Set up EDI with Kroger_**](https://supplierwiki.supplypike.com/articles/how-to-set-up-edi-with-kroger/)

Interpreting an EDI error message
---------------------------------

Fortunately, when errors occur, trading partners or EDI providers will send messages that may contain helpful feedback for resolving the problem. Remember that the term EDI codes refers to individual elements in said electronic documents. EDI codes are EDI transactions, and so that’s where the confusion starts because EDI documents are not codes. 

Kroger has been maximizing EDI technology for some time to help a new vendor and reduce time spent and operating expenses on both sides. They have a Compliance Program to ensure standardization and accurate transmission of EDI codes. 

Common Kroger EDI transaction codes
-----------------------------------

1.  **Purchase Order (EDI 850):** The EDI 850 is for a PO set used to order goods and services. 
2.  **Invoice (EDI 810):** When one receives an EDI 850, then Kroger requires an EDI 810 invoice as a follow-up. Payments follow once the Kroger company receives the EDI 810. 
3.  **Credit/Debit Memo (EDI 812):** The EDI 812 is a credit/debit memo used to adjust previously entered charges for products already delivered and invoiced. Kroger will use this transaction set to reset the price from a supplier if it finds a discrepancy or another situation comes up. 
4.  **Remittance Advice (EDI 820):** Kroger typically uses the Remittance Advice for **ETF (electronic transfer of funds)** for payment of goods and any pending deals or adjustments. The EDI 820 contains details related to accounts, billed and paid amounts, and invoice numbers. 
5.  **Application Advice (EDI 824):** The EDI 824 is an Application Advice, also known as an “Error Notification” set, since it involves communicating errors found in previous transactions. This transaction lets the supplier make corrections and retransmit the new data before risking a non-compliance fine. 

[**_Related Reading: Explaining EDI: 800 Transaction Codes_**](https://supplierwiki.supplypike.com/articles/explaining-edi-800-transaction-codes/)

Avoiding common EDI errors with Kroger
--------------------------------------

When a Kroger supplier receives an EDI 824, there will be two levels of errors: 

*   **Minor Error:** Kroger may handle these by defaulting to an alternate choice.
*   **Fatal Error**: This error prevents the EDI from processing and is, somehow, in violation of Kroger’s compliance program. 

The **TED02** is a message describing the error in detail, with similar **TED00** numbers providing other elements of interest. While the [Kroger website](https://edi.kroger.com/EDIPortal/ProgramAndRequirements/Kroger/PR_824_Application_Advice_Error_Codes.html) devoted a whole page to error codes, common issues include: 

*   Audit Errors
*   Multiple Document Errors
*   EDI 810 Invoice Errors
*   Promotional Errors
*   Price Change Errors
*   Direct Store Delivery NEX Errors (Telephone Links) 
*   Problems were serial numbers or other IDs
*   Missing Data
*   Invalid Combinations
*   And of course, everyone’s favorite, Undefined Errors or Unlisted Reasons

How do I avoid EDI mistakes and 824s?
-------------------------------------

Another standard message suppliers receive is an **EDI 824 Application Advice**, which is for direct B2B communication, with explanations, contracts, and notices not intended for automation. To avoid receiving error EDI transactions, try to remember the following avoidance procedures: 

*   Take note of all the required transactions to avoid missing data errors
*   Always stay transparent and provide complete visibility of inventory
*   Use all the suggested transaction sets to promote transparency
*   When adding Kroger, value the company’s business and start on the right foot by creating a protocol to ensure accuracy 
*   Make sure to automate the protocol and customize it for the brand and Kroger, specifically 
*   If, and when, a chargeback happens, find the issue that caused it and fix it, instead of just providing the new information 
*   Know Kroger’s policies and rules

Avoiding common EDI errors for new Kroger suppliers
---------------------------------------------------

In short, incomplete notices and transactions will often lead to chargebacks – and Kroger won’t put up with it! Suppliers can face a chargeback dispute if they’re missing a receipt or if they missed the window to send an EDI transaction. If suppliers don’t follow the instructions exactly, they risk chargebacks and losing the Kroger business relationship.

While many trading partners have multiple supply chain contacts and do treat every company the same, it’s just going to backfire at some point. Kroger’s rules are specific, and the grocery giant can certainly afford to shop elsewhere for inventory. Kroger doesn’t even offer much in the way of testing the system before vendors begin. 

It is no wonder then that many brands that depend on a working relationship with Kroger will hire a third-party EDI provider to handle the intensive process. 

While it’s wise for suppliers to read the Kroger manual and do research anyway, hiring a reputable EDI provider will prevent mistakes – and is guaranteed to safeguard a relationship with a top brand name. 

Fighting EDI chargebacks
------------------------

SupplyPike is taking its [**Deductions Navigator**](https://www.supplypike.com/deductions) tool and integrating it with SPS Commerce’s data to bring you deductions visibility and one-click disputes.

For more information, check our [**SupplyPike and SPS Commerce partnership page**](https://www.supplypike.com/spscommerce)!

[![Leverage your data and get money back. Learn more.](https://lh4.googleusercontent.com/tZDgzJQi5j37mvTqyddFDaTUW96OCA0rfqosG3nlHZMkRNa8seqjjjis8Nyx8-pMcs3ooNpNnSSRSRE_A24C4P-8dcqJdrQ93rM_VOfMMpXiE-4ekmwl0XSr1hitecZhJ4cIYxga)](https://www.supplypike.com/spscommerce)

Avoiding Common EDI Errors with Kroger

Learn about:

*   What does “DUNS” mean
*   Getting a DUNS number
*   Finding your DUNS number

* * *

Retailers often confuse their **employer identification number (EIN)** with the **DUNS number**. While the IRS issues EIN for tax purposes, businesses use the DUNS number as a quick way to identify and learn about different companies. 

If you want to apply for a grant or cooperative from the federal government for your business, you need a DUNS number. Without a unique number, you’re not eligible to receive business credit reports from Dun and Bradstreet. 

Since Dun and Bradstreet is the nation’s most prominent business credit-reporting bureau, the most significant benefit of having a DUNS number is that anyone can quickly check your business’s credit history.

Having the Dun and Bradstreet number can help you get new business opportunities with a new manufacturer or a more prominent retailer such as Kroger. Other companies will want to know your credibility before collaborating, and the DUNS number offers that without you having to do much work. 

What is a Dun and Bradstreet number?
------------------------------------

The **Data Universal Numbering System (DUNS) number** is a nine-character number unique to a company. Used mainly to identify a business, the federal government uses the DUNS number to track the allocation of federal money.

Companies like Kroger are significant opportunities for many suppliers, especially vendors in the [**consumer packaged goods (CPG)**](https://supplierwiki.supplypike.com/articles/defining-consumer-packaged-goods-cpg/) business. If a new vendor or a supplier wants to [**register with Kroger**](https://supplierwiki.supplypike.com/articles/how-do-i-become-a-kroger-supplier/), it will need to obtain its DUNS number first. 

It’s possible to have several DUNS numbers since the identifier is site-specific. Each location belonging to a single entity (branches, divisions, etc.) can have its separate DUNS number.

The federal government does advise to keep DUNS numbers to a minimum. In most cases, having a central DUNS number alongside identifiers for divisions should suffice.

The additional variation is the **DUNS+4 number**. Known as the Electronic Funds Transfer (EFT) indicator, it’s a four-character suffix added to the original identifier. Businesses use the number to identify different electronic funds transfer accounts tied to the same group. 

Dun and Bradstreet don’t provide DUNS+4. Instead, a retailer can get a DUNS+4 number through the [**System for Award Management (SAM) website**](https://www.sam.gov/SAM/).

How to get a DUNS number from Dun and Bradstreet
------------------------------------------------

If your business doesn’t have the number, you can get one by visiting [**the Dun and Bradstreet website**](https://fedgov.dnb.com/webform/displayHomePage.do). Obtaining the DUNS number is free of charge for any business. Be aware that if you encounter any fees in the acquiring process, it’s likely a scam you should ignore.

To acquire a DUNS number, you’ll need the following business information.

*   Business’s name and address
*   Chief executive officer (CEO) or business owner’s name
*   Business’s starting year
*   Primary business type
*   Employee number (both full and part-time)
*   Business’s legal structure (corporation, partnership, etc.)

You should screenshot the information before clicking the submit button. If you plan to register in SAM later, you’ll need to provide the information in the same way. Otherwise, SAM.gov can reject your registration.

It’s possible to get a DUNS number inside a single business day, but it usually takes up to two business days. If you don’t get your identifier within ten business days, [**contact Dun and Bradstreet**](https://www.dnb.com/contact-us.html).

A business doesn’t need to get a DUNS number, but attaining one helps avoid credit report errors and establish new business opportunities. Many contractors, such as Apple, require a DUNS number before setting business. 

Dun and Bradstreet contact businesses with a DUNS number to verify that the company’s information is up-to-date. If you have several DUNS numbers, you can request a listing for free to determine if all of your information is current.

After receiving a Dun and Bradstreet number, the bureau analyzes your credit accounts and determines your PAYDEX score. The credit score is usually the most critical information companies get when doing a credit check. 

You can also choose if you want D&B to include you in their marketing listing that they sell to other companies. While this can help your networking, it’s up to you.

### How to get a DUNS number for a company outside of the United States

If your business is outside the U.S., you can still get a DUNS number. **You don’t need a federal Tax Identification Number (TIN).** The process is similar except that you’ll need to pick a different country, depending on your business’s location. 

The process may be longer for a foreign company, and it might take up to several weeks before receiving your foreign business DUNS number.

How to find a DUNS number
-------------------------

If a supplier plans to [**set up EDI with Kroger**](https://supplierwiki.supplypike.com/articles/how-to-set-up-edi-with-kroger/) or any other reputable company, it can rest assured everything will be legitimate. However, in cases where the supplier intends to collaborate with lesser-known retailers, it’s a good idea to learn more. Acquiring a DUNS number is a great way to do a risk assessment of potential business partners. 

You can search for any company’s DUNS number by entity’s name or phone number using [**the Dun and Bradstreet lookup tool**](https://www.dnb.com/duns-number/lookup.html). You can get your or another business’s credit score report using the DUNS number by visiting [**Dun and Bradstreet**](https://www.dnb.com/resources/business-credit-report.html). 

The credit score runs from 0 to 100, and it divides into three Risk Categories. 

*   0 to 49 – **High-risk** companies
*   50 to 79 – **Medium-risk** companies
*   80 to 100 – **Low-risk** companies

The simple scoring system can provide a quick overview of where a business is standing credit-wise. The score also helps decide if you should do business.

Keep in mind that [**the federal government**](https://www.gsa.gov/about-us/organization/federal-acquisition-service/office-of-systems-management/integrated-award-environment-iae/iae-information-kit/unique-entity-identifier-update#:~:text=By%20April%20of%202022%2C%20the,)%20created%20in%20SAM.gov.) plans to replace the DUNS number with a **Unique Entity Identifier (UEI)** to identify entities inside the SAM system by April 2022. A retailer doesn’t have to do anything since the rollup will go out in several phases. You should still get your DUNS number if you plan to collaborate with other retailers until UEI is fully operational. 

Not having a DUNS number means you depend on your personal credit, which can harm your credit score if you have high debt or fail to make payments. Getting a Dun and Bradstreet number is the founding step for establishing a credible business that other companies can trust.

[![we heart cpgs. take a tour.](https://media.graphcms.com/ok70tFPESYyBTist6lop)](https://www.supplypike.com/)

What Is a DUNS Number?

Kroger and EDI

To educate new and veteran suppliers on the ins and outs of doing business with Kroger