PO On-Time Accuracy Chargebacks: How to Prevent
When a retailer sends a purchase order (PO), they are trusting you to deliver the right products, in the right quantity, at the right time. That sounds simple enough, but in retail logistics, timing is everything.
If your shipment misses its window, if confirmed units get reduced too late, or if you don’t deliver what you promised, it can all lead to one costly outcome: a PO On-Time Accuracy chargeback.
These chargebacks have become one of the most frequent and expensive deductions for vendors, especially in marketplaces like Amazon Vendor Central.
Key Takeaways
- Always verify product availability before confirming POs.
- Match your Freight Ready Date or Delivery Date exactly to the PO window.
- Avoid changing confirmed units after the allowed timeframe.
- Track your trailing accuracy rate and resolve exceptions early.
- Communicate clearly across logistics, procurement, and warehouse teams.
What is a PO On-Time Accuracy Chargeback?
A PO On-Time Accuracy chargeback happens when a vendor fails to meet the purchase order requirements for timing or quantity.
In short, you confirmed a PO, but you didn’t ship or deliver the products according to the window agreed upon. Retailers use this rule to make sure their inventory, promotions, and replenishment plans stay accurate.
The chargeback is typically split into three main types:
1. Not On Time
Your confirmed shipment or delivery happened outside the assigned window on the PO.
If your trailing on-time rate falls below a threshold (often 90%), you can be charged around 3% of the cost of the product for every non-compliant unit.
For collecting shipments, this happens when the Freight Ready Date (FRD) you enter in your routing request falls outside the ship window.
For prepaid shipments, it’s when the Carrier Requested Delivery Date (CRDD) goes beyond the delivery window.
2. Down-Confirmed
This happens when you reduce your confirmed units after a certain number of days into the ship or delivery window (usually five).
For example, if you confirmed 100 units but reduced to 80 after that five-day mark, you can expect a 3% deduction on the value of the 20 missing units.
3. Not Filled
If you confirmed that products would ship, but the PO gets canceled because nothing was delivered, that triggers a “Not Filled” chargeback.
This one can be the most expensive, often up to 10% of the cost of goods.
Why PO On-Time Accuracy is Important
PO On-Time Accuracy might sound like a technical metric, but it’s deeply tied to how retailers see your reliability.
When your orders don’t arrive on time, stores and distribution centers can’t plan stock levels. Promotions get disrupted. Customers can’t find what they came for. It starts small but snowballs quickly.
Chargebacks are the retailer’s way of saying, “You missed the mark, and we had to absorb the cost.”
Poor on-time accuracy doesn’t just hurt your profit margins through deductions. It affects your performance scorecard, your vendor standing, and the likelihood of getting new POs in the future.
Maintaining a strong on-time rate shows operational control and builds long-term trust.
How to Prevent PO On-Time Accuracy Chargebacks
Improving PO On-Time Accuracy starts with small, disciplined actions across your supply chain.
Here’s how to keep your accuracy high and avoid deductions.
1. Confirm Only What You Can Deliver
Don’t confirm a PO just to secure the business. Double-check inventory and production before committing. If certain SKUs are back-ordered, mark them that way or reject the line item if backorders aren’t allowed. Over-confirmation leads to missed shipments and auto-cancellations.
2. Finalize PO Confirmations Fast
Retailers often expect confirmations within 24-48 hours. Delaying confirmation compresses your own shipping timeline and increases risk.
Once confirmed, try not to modify units after the five-day window starts. Every late change affects your accuracy rate.
3. Match Dates Correctly
To collect freight, make sure the Freight Ready Date (FRD) on your routing request sits inside the PO ship window. For prepaid freight, ensure the Carrier Requested Delivery Date (CRDD) is inside the delivery window. Even a one-day mismatch can trigger a chargeback if your trailing rate dips below the allowed threshold.
4. Keep Data Precise
Routing requests, pallet counts, dimensions, and shipment details need to be exact. If your carrier shows up and your freight isn’t ready or the weight is off, pickup delays happen, and that delay flows directly into your metrics.
5. Track and Review Weekly
Don’t wait for a penalty notice. Monitor your trailing four-week PO On-Time Accuracy rate. If it starts dipping, identify which POs caused the drop and fix those operational gaps immediately.
6. Improve Cross-Team Communication
Operations, logistics, and inventory teams must stay aligned. Many vendors lose accuracy simply because the warehouse doesn’t have visibility into the retailer’s delivery windows or routing cut-offs.
A Note on Amazon’s Evolving Standards
Amazon is gradually moving from PO On-Time Accuracy to a broader compliance metric called In-Full Delivery.
It combines several older chargebacks (like Not On Time and Not Filled) into one measure.
They’ve also introduced new categories, such as PO Overage, where extra shipped units not ordered or confirmed are penalized at full cost.
In other words, accuracy is not just about being on time anymore; it’s about precision at every step.
The Real Cost of Missing the Window
PO On-Time Accuracy chargebacks might seem like small percentage hits, but over time, they add up.
A 3% deduction across multiple POs, every month, can quietly erase your margins.
And it’s rarely just the money.
When accuracy drops, operations turn reactive. You start chasing last-minute routing requests, scrambling carriers, and rushing warehouse picks. That chaos burns hours and builds stress across your team.
Fixing PO accuracy is less about fighting deductions and more about building a smoother, more predictable supply chain.
How iNymbus Helps Suppliers Manage PO On-Time Accuracy Chargebacks
Managing PO On-Time Accuracy chargebacks manually can be frustrating and time-consuming.
Every late shipment, missed confirmation, or system discrepancy can trigger multiple deductions that require documentation, proof, and follow-up with retailers.
iNymbus automates this entire process through Robotic Process Automation (RPA).
The system continuously monitors vendor portals for new PO On-Time Accuracy deductions, retrieves related shipment data, and validates it against retailer requirements.
If a discrepancy is found, iNymbus automatically compiles the necessary proof documents, such as routing confirmations, tracking data, and delivery receipts, and then files disputes directly with retailers like Amazon, Walmart, Target, and The Home Depot.
With iNymbus automation in place, suppliers can:
- Automatically prepare and submit supporting documentation for dispute claims.
- Recover chargeback losses faster and with higher accuracy.
- Eliminate repetitive manual work tied to compliance and deduction handling.
- Gain full visibility into performance and deduction trends through the analytics dashboard.
By automating dispute resolution and compliance tracking, iNymbus helps suppliers maintain strong PO accuracy scores and reduce chargeback exposure.
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