Slaying the Beast called Post Audits 🐉

Me, a veteran supplier, unbothered by a $500,000 audit.

How’s it going Vendorville,

The new fiscal year is upon us which means post audit season is looming. Retailers and their auditing partners are sharpening their pencils and reanalyzing data from the previous period.

Post audits can feel like a curveball, but we’ve got your back. Let's dive into what post audits are, what to expect, and how you can turn this mountain into a molehill.

What Are Post Audits?

It comes from out of nowhere and changes the course of your week – a claim package from a retailer like Walmart.

Unbeknownst to you, Walmart’s Post Audit team has been busy combing through transactions, emails, and supplier agreements from the past 2 years to recover funds they believe were lost. These claims can range from pricing errors to freight charges, and can even be claims that you already disputed and won. Basically, if it’s a detail you missed, it’s on their radar.

Like this slide? See the rest of the presentation here.

Types of Post Audit Claims

There’s different claims and language depending on the retailer you’re selling into. At Walmart, here are the most common types of claims.

Pricing: These occur when price-protected items aren’t properly reflected. Think of mismatched co-op calculations.
Allowances: Cash discounts, defective allowances, and quantity allowances often cause headaches if they are not handled according to vendor agreements.
Freight & Handling on Returns: Damaged goods lead to freight and handling charges—plus a 10% handling fee.
Trucks Ordered Not Used: Cancelling a collect order? That unused truck may cost you.
Failure to Combined Loads: Didn’t utilize the truck to its fullest? That’s another charge.

How to Stay Ahead of Post Audit Claims

The best way to deal with post audits? Prevent them from happening in the first place. Here’s how:

Pricing: When negotiating prices, make sure all terms are confirmed in writing—and flagged as “offers” until finalized. Cover your bases and your emails.

Allowances: Avoid allowance claims by ensuring all data is properly mapped in the EDI raw data. Missing data equals missed allowances.

Freight & Handling on Returns: While damaged goods may be out of your control, proper packaging and palletizing can save you from preventable claims.

TONU: Accurately set up load constraints in the item master to avoid unnecessary truck cancellations. Know your items’ weight vs. cube requirements and plan accordingly.

Failure to Combine Loads: Double-check logistics to ensure trucks are built efficiently. If Walmart’s logistics team misassigns loads, work with them to rebuild the truck. Proactivity is key.

What Happens When Claims Hit?

Prevention is great to start now, but what about those post audits that are sitting on your table now? Once an audit claim lands in your inbox, the clock starts ticking. Here’s the process:

Claims between $500 and $100,000 are auto-deducted, with the claim packet sent to your email. Dispute these promptly.
Claims over $100,000 require a supplier response within 15 days.

For correspondence-based audits, always respond promptly. Notify the auditor you are pulling proof documentation and start building your case. In some situations, auditors provide more time if suppliers are communicative.

Supplier agreement-based audits may have less wiggle room, especially if you have a history of similar claims.

Disputes are your right, so exercise them! Send all supporting documents to the auditor and follow up until resolved. If the auditor ghosts you, escalate to Walmart’s vendor call center at 888-499-6377.

⭐ PSA: SupplyPike will dispute your audits for you. No joke.

In Closing: Prepare, Prevent, Persist

Post audits are no picnic, but they’re manageable with the right strategy. Keep your agreements tight, your data tidy, and your communication crystal clear. By staying proactive, you’ll minimize surprises and keep your profits where they belong—in your pocket.

One more resource before you go, listen to a pro audit slayer drop her knowledge from 10+ years of experience. ⚔️

Until next time, keep calm and audit on!

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“SupplyPike is always cookin’ up something new. If you sell into Lowe’s, there’s now a streamlined deductions management solution – built with you in mind. Easily identify, recover, and prevent revenue loss—so you keep more of what you earn.”

Let’s Circle Back 🔄

✨ 7 Questions with Tori Ledbetter ✨

1) What is your role in SuplierWiki?

Manager of SupplierWiki!

2) What is your favorite task to do at SupplierWiki?

Retro Meetings are when we take time to reflect on the past two weeks and review what's gone well, what hasn't gone well, ideas, and gold stars. We all meet as a team, and it's a good mix of fun and learning!

3) What’s your favorite way to unwind after a busy day at work?

Bake! I love to try new recipes at home or bake fan-favorite recipes and share them with others.

4) If you could live anywhere in the world, where would you choose?

Hmmm. This is hard because I feel very content with where I'm at. I'd probably pick Switzerland. I had the pleasure of visiting in 2023, and it's the place I talk about the most to others. Its beautiful mountains, snow, and scenery are just breathtaking, and I'd love to go back for a longer period of time.

5) If you were stranded on a deserted island, what three items would you want to have with you?

I need a speaker to play music. I like to have light music going on in the house, maybe something jazzy.
Snorkeling gear so I could enjoy the water.
Bug spray. I do not like bugs, and I don't want to take any chances that I could get bitten!

6) What’s one book, movie, or TV show you think everyone should experience at least once?

New Girl! There are sooo many quotable moments from this show. "You give me cookie, I gave you cookie!" It's pure gold.

7) What is a fun fact not many people know about you?

My coworkers may know this but I have graduated from a Cotillion class! My mother taught it growing up so I took the classes every summer. You learn how to dance, talk on the home phone (rip), use utensils, and eat most foods! 🎩

Until Next Time,

Vendorville ♥️