Congratulations,

We’ve rolled out the red carpet for you, Vendorville. Just like Hollywood's finest films, the world of retail deductions is full of drama, intrigue, and unexpected plot twists – and we’ve got one for you today. 😈

With awards season behind us, we thought we'd present a few nominees of our own in the world of Walmart's AP Deductions.

Our judging panel consists of data from millions of disputes submitted on behalf of our customer base. It’s not quite the Oscars, but these performances kept us on our toes in 2023 and brought us to tears more often than we’d like to admit. 🥲

Today’s newsletter roadmap:

Awards Season for AP Deduction's
Rick’s Tips
Retailer Mascot Bracket

Lights, Camera, (Supplier) Action! 🎥

Most Expensive Code: Code 22 (Goods Billed Not Shipped)💸

Code 22 has continued to deliver solid performances year after year, and came out on top as the most costly code of 2023 yet again. A pivotal plot twist in suppliers’ supply chains, Code 22s reveals alleged discrepancies between the invoiced quantity and the received quantity at Walmart’s distribution centers.

💡Thankfully, Code 22s are also among the most common codes to be won back. Because of their outsized impact and relatively high win rate (85%+ on average), we always recommend suppliers start here when tackling their AP-related revenue loss.

📈Highest Volume Code: Code 94 (Goods Returned/Defective Merchandise)

In 2023, Code 94s had more volume than a summer blockbuster. This code is often used when a customer returns an item, or it is considered defective merchandise. Code 94s are typically valid if the supplier agreement specifies that the supplier is responsible for the cost of defective returns, and the supplier is NOT deducting a defective allowance off invoice. That said, it is common for Walmart to create Code 94 deductions for returns regardless of whether or not the supplier is deducting a defective allowance off invoice, so it is important to be aware of this.

💡We’d recommend getting a handle of your Supplier Agreements to really understand the defective allowance % you’re providing Walmart, and ensure the Code 94s you are receiving are valid…or not. It’s the perfect time to do some spring cleaning!

🥊 Most Likely to be Disputed: Code 21 (Concealed Shortages)

Code 21 emerged this year with an iconic portrayal as the villain of the deductions world. These dastardly codes occur when alleged shortages evade detection upon initial receipt at Walmart’s distribution centers, and only reveal themselves when the vendor pack is opened or the shipment reaches its final destination at the store.

💡Code 21s can be disputed, but they are often more difficult to win compared to other shortage codes. That said, if you can prove that the shipment was truly received in full (many suppliers provide images of pallets, inventory receipt reports, etc.), then disputing them is worth the effort.

🚚 Most Expensive DC: DC 6054 (LaGrange, GA)

Ah, the Distribution Center…a place of both marvel and mystery in the supply chain world. Unfortunately, even the most efficient of centers can sometimes find themselves struggling with issues like receiving errors, and this year, DC 6054 took the cake.

💡It is important to understand not only which deduction codes your team is tackling, but also where they’re coming from. If the amount of deductions you’re receiving from a specific DC is relatively larger than the amount you are shipping to that location, it might be time for a closer look.

Other Retailer News 📰

March 5, 2024

Red Sea/Suez Canal CrisisDisrupts
Global Logistics

"New Collaborator Alert! Read how Kevin Parkerson of KP Global Logistics explores the global impact of the Suez Canal Crisis – and how your logistics team can respond."

Rick’s Tips

Rick, SupplyPike's mascot and culture icon, loves the tea – no matter the subject. He will neither confirm nor deny if he's the real reason Will Smith slapped Chris Rock. His only comment was “Jada Pinkett, who”? 😉

“And that concludes this year’s awards ceremony. 🏆 We’d love to know if any of this year’s winners surprised you! Review the rest of the “nominees” in SupplierWiki’s most-read eBook!”

Let’s Circle Back 🌀

We're kicking March Madness off early with Round 2 of the Retailer Mascot Showdown.

Here’s an update on Round 1 for Mascot Madness:

Target overtook Home Depot with ease
Walmart lost to Publix by a landslide
It was a close match, with Piggly Wiggly barely clearing Lowes
The biggest upset was Amazon taking on the final four after defeating Kroger

Use your retailer knowledge to determine which retailer mascot prevails in the Championship face-off.

Was this email forwarded to you? Subscribe here

❤️ Sincerely, Your Friends in Vendorville

SupplierWiki

Other Retailer News 📰

Red Sea/Suez Canal CrisisDisrupts Global Logistics

Rick’s Tips

Let’s Circle Back 🌀

Red Sea/Suez Canal CrisisDisrupts
Global Logistics