Kroger Vendor Compliance Guide: ORAD, Fill Rate, and Fees

Kroger vendor compliance is the set of delivery, data, and shipping standards Kroger measures on every inbound load, and each miss lands on your remittance as a 16-digit deduction. A late arrival, a short PO, a broken pallet, or a missing location update each carries its own fee, and one load can trigger several at once.

Kroger rebuilt the program starting in January 2025 with a higher on-time threshold, an enterprise-wide fee schedule, inbound load audits run with Capstone Logistics, and real-time visibility requirements. The sections below cover each requirement, what a miss costs, how violations reach your remittance, and how to dispute charges that shouldn’t have posted.

What Is Kroger Vendor Compliance?

Kroger vendor compliance is the set of logistics, documentation, and data standards suppliers must meet when shipping to Kroger distribution centers, fulfillment centers, and stores. Kroger enforces it through its vendor non-compliance (VNC) program, which charges fees for late deliveries, short shipments, load and pallet defects, documentation errors, and missing visibility data.

Three rules shape how the program works:

• Fees are deducted automatically: charges come out of open invoices; anything not deducted within 60 days must be paid by check
  
• Fees are contractual: vendors agree the amounts are reasonable liquidated damages rather than penalties, and they apply in addition to indemnification obligations
  
• Ownership affects exposure: many fees don’t apply when Kroger manages your inbound lanes

Kroger Vendor Compliance Program Timeline

ORAD: Kroger's On-Time Delivery Requirement

ORAD stands for Original Requested Arrival Date. It is Kroger's on-time delivery metric for inbound POs.

How Kroger Measures ORAD

A PO is on time when it gates in at the Kroger DC on its ORAD. A load arriving after midnight still counts as on time if it arrives within the DC’s receiving hours for the previous day.

ORAD only applies to POs that comply with the supplier’s stated lead time. If Kroger cuts a PO inside your lead time, the ORAD rule doesn’t apply to it.

The 93% Threshold and the ORAD Fee

Suppliers that deliver 93% or more of POs on time over the prior 4-week period are exempt from ORAD fees for that period. Below 93%, Kroger charges 3% of the invoiced amount for each vendor-caused late PO.

Kroger assesses performance at the end of each period, so one bad week doesn’t trigger fees if the 4-week total stays at or above 93%.

Vendor-Managed vs. Kroger-Managed Loads

Responsibility for an ORAD miss depends on who manages the freight:

• Vendor-managed loads: the vendor or its carrier must book DC appointments with enough lead time to meet the ORAD
• Kroger-managed loads: the vendor must provide pickup appointments with enough lead time and have product ready at pickup as failing either triggers the ORAD fee

Vendor-caused carrier accessorials such as detention and truck order not used are charged back on top of the ORAD fee.

Kroger Case Fill Rate Requirements

Kroger expects every PO to ship at 95% case fill or better, and any PO below 95% is charged a 3% fee. Orders must also ship complete in a single departure; backorders require prior written approval.

Kroger states the case fill fee base two ways: 3% of the value of the missing items, and 3% of the PO value. The difference is large. On an $8,000 PO filled at 90%:

When a case fill charge arrives, check which base was applied before deciding whether to dispute.

Kroger Non-Compliance Fee Schedule

Kroger’s fee schedule charges for load quality, documentation, labeling, appointments, visibility data, and EDI errors, with most violations set at $500 per PO. Amounts below reflect the 2025 schedule.

New vendors have 90 days to begin transacting through EDI before EDI non-compliance fees apply.

Additional Fred Meyer Fees

Fred Meyer general merchandise adds its own charges:

Kroger Shipment Visibility and Appointment Requirements

Kroger requires near real-time location and temperature tracking on in-scope inbound loads through One Network, and missing location data costs $100 per PO.

Location and Temperature Data Requirements

Any PO tendered through One Network or iTrade that exceeds 10,000 pounds or 750 cube must send location and temperature data every 15 minutes. At least 90% of POs must meet the requirement.

Out of scope:

• All DSD and small parcel shipments
• Ambient loads (no temperature data required)
• Produce, floral, and meat suppliers (no temperature data, because these loads use DeltaTrak monitors; location data still required)

Auto-Scheduled Appointments

At DCs using auto-scheduling, inbound loads over 14 pallets receive an automatically scheduled appointment. The responsible party must confirm or reschedule it at least 72 hours ahead. Unconfirmed appointments cancel, and detention is not authorized.

The program documents describe auto-scheduling as piloted at the Goddard and Hutchinson DCs and live at the two Dillon's DCs, so confirm whether it applies to your destination. Questions go to contractssupplychain@kroger.com.

Appointments are booked through One Network. Manual scheduling can incur a fee. Chehalis and Clackamas schedule by phone, without a fee.

ASN, EDI, Labeling, and Pallet Requirements

ASN Requirements

• Every accepted PO needs an ASN: an EDI 856 is required for each accepted PO
• Timing: sent no later than 1 hour after the truck departs and processed before arrival
• Hierarchy: Shipment, Order, Tare, Pack, Item (hierarchy code 0009)
• Label match: SSCC and package data must match the physical labels
• Exception: Peyton DC does not require ASNs

EDI Requirements

• Standard: ANSI X12
• Acknowledgments: vendors acknowledge Kroger documents with a 997 and watch for Kroger's acknowledgment within 24 hours or the standard's time limit, whichever is shorter
• DC transactions: DC POs and invoices must go through EDI
• VAN changes: require 30 days' notice

Pallet and Label Requirements

• Pallet size: 48" x 40", four-way entry
• Pallet type: pool pallets such as CHEP, or #1 Grade A pallets; Kroger does not participate in pallet exchange or pallet banks
• Peyton exception: full-entry block pallets required
• SSCC label placement: outside the shrink-wrap, 16 to 32 inches from the base, at least 2 inches from the vertical edge
• Mixed pallets: each layer needs its own SSCC
• Case labels: separate data requirements for grocery, pharmaceuticals (2D data matrix and NDC), produce (GS1-128), meat, poultry, and seafood (including USDA establishment number), and general merchandise and apparel
• Code dates: minimum 12-point font, legible from 4 feet on case packs

Other Shipping Rules

• Every load needs a BOL listing all PO numbers
• UPC and GTIN changes must be communicated at least 90 days before shipment
• Substitutions require email authorization
• Hazardous and chemical-containing products require WERCSmart registration

How One Load Can Trigger Multiple Kroger Fees

Kroger fees stack, so one late, short load can cost more than $1,600 before handling charges. This example uses illustrative numbers.

The load: a vendor-managed shipment of three POs, each invoiced at $8,000 ($24,000 total). The truck arrives 45 minutes after its appointment and misses ORAD. One PO ships at 90% fill. Two pallets arrive broken. The BOL omits one PO number. The supplier’s on-time rate for the 4-week period is 91%.

Two details change the outcome. At 93% on-time for the period instead of 91%, the $720 ORAD charge disappears. And if the delay came from a Kroger-approved date change, the approval email turns the ORAD fee into a recoverable dispute.

The pattern holds across the whole program: Kroger compliance fees are won or lost on approvals and documents captured before the load arrives.

How Kroger Compliance Violations Appear on Your Remittance

Kroger expanded inbound load auditing with Capstone Logistics, which documents violations such as broken pallets at receiving.

How to recognize them: Capstone violations appear as 16-digit deduction invoices on your remittance, with "Capstone violation" in the item description.

Who assesses them: These charges are not assessed by PRGX, Supplier Connect, or Kroger's accounting center. Supplier Connect only shows the remittance detail. Suppliers view the infraction images in the Capstone portal and apply the credit in their own systems.

How to Get Capstone Portal Access

1. Create an account at complianceportal.capstonelogistics.com, leaving the MC and DOT fields blank (those are for carriers)
2. Complete Kroger's access form using the same email address as the account
3. Allow 3 business days for approval

The Vendor Detail Report shows only the vendor numbers assigned to you. Violations move through these statuses:

Settlement Netting

Kroger offsets deductions, including logistics compliance fees, against accounts payable through settlement netting. Kroger uses a single remit-to across divisions, no longer issues $1.00 checks, and nets payments to $0.00. Kroger doesn’t send notice of netting, so export Supplier Connect Payments View data regularly, filtered by payment reference date, settlement number, or invoice number.

How to Dispute Kroger Compliance Fees

Kroger compliance fees are disputed as formal claims in Supplier Connect within 180 days of the deduction date, with the correct claim type and all documents attached at submission.

Dispute Rules

• Deadline: within 180 days of the deduction date, with no exceptions
• Minimum: total claim value over $50.00
• Claim type: a wrong claim type is denied with no further review
• Documentation: attach everything at submission; incomplete claims are denied and must be resubmitted within the 180 days
• Approvals first: secure approvals before filing
• Comments are not disputes: a comment or question on an invoice does not open a review

Which Claim Type to Use

How to Get an ORAD Waiver Approved

The strongest ORAD dispute is one you set up before the load arrives:

1. Contact your Kroger business partner as soon as you know a load will miss its ORAD
2. Agree on a new date, and confirm the partner updates Kroger's system
3. Get email confirmation; a screenshot is acceptable
4. Make sure the email includes the reason, PO number, ORAD, the first available One Network appointment date if it fell after the ORAD, and the partner's explicit approval to waive

Without this proof, Kroger assumes the request was never reviewed. If you are charged despite an approval, upload the partner's email to each claim.

For case fill and other VNC fees, attach approval from both a Vendor Compliance associate and your business partner.

Other Kroger Policies That Generate Charges

Several commercial policies also produce deductions:

Which Team Owns Each Kroger Compliance Area

Recover Kroger Compliance Fees With iNymbus

Kroger compliance fees arrive as 16-digit deductions, are explained in a separate Capstone portal, and must be disputed in Supplier Connect with the right claim type and approvals inside 180 days. Tracking that across every load is where recoverable fees turn into write-offs.

iNymbus automates the workflow. It pulls Kroger deductions from Supplier Connect, classifies Capstone and ORAD charges, matches each one to your BOLs, approval emails, and shipping records, and files claims with the correct claim type before the deadline, alongside deductions from 50+ other retailers.

Talk to the iNymbus team.