It is not just a guideline. It is a contractual framework that, if ignored, leads to costly chargebacks, delayed payments, and strained partnerships.
This guide breaks down the key elements of vendor routing guides, explains why adherence is non-negotiable, and outlines common violations that trigger deductions.
A Vendor Routing Guide is a set of logistics, labeling, packaging, and shipping instructions provided by a retailer to its suppliers. It outlines how goods must be prepared and delivered to meet retailer-specific requirements. Each guide varies by retailer, product type, and distribution strategy, but non-compliance often leads to deductions or chargebacks against the invoice.
While the routing guide may seem like a logistics document, it’s also a compliance checkpoint with direct financial consequences. Non-adherence leads to operational disruptions, lost inventory visibility, and automated deductions issued through retailer systems.
Retailers operate on slim margins and tight schedules, so compliance ensures:
Failure to follow routing instructions is one of the top reasons for chargebacks in retail.
Routing guide violations come in many forms: some logistical, others technical. Here's a breakdown of typical non-compliance scenarios that generate chargebacks:
Here are some examples of deduction codes used by major retailers:
Walmart:
Target:
Kohl’s:
Avoiding these costly issues starts with taking routing compliance seriously. Here's how vendors can get ahead:
Maintain a single source of truth for routing instructions, updated per retailer. Routing guides are frequently revised, and relying on outdated SOPs is a fast track to chargebacks.
Build pre-shipment workflows that check for:
Chargebacks are often preventable at the operational level. Provide training for teams that handle packaging, labeling, and EDI processing.
Routing-related deductions often stem from ASN errors or delays. Monitoring your EDI pipeline for failed transactions can prevent silent violations.
Even the most meticulous vendors can’t escape every chargeback. But what you can control is how quickly and efficiently you respond.
That’s where iNymbus comes in.
iNymbus automates deduction identification, documentation collection, and dispute submission for routing violations and other common chargeback categories. With pre-built integrations across major retailer portals and EDI platforms, it helps AR teams:
Instead of manually chasing hundreds of invalid deductions, let iNymbus reduce your backlog and increase recovery rates, especially for chargebacks related to ASN issues, shipping errors, and labeling mismatches.
What’s the difference between a routing guide and a compliance manual?
A routing guide focuses on shipping, labeling, and transportation procedures. A compliance manual may include broader vendor requirements, including pricing, packaging, or returns.
Can I recover money from routing violations?
Yes, if the deduction was made in error or if you have documentation showing compliance. Retailers like Walmart and CVS have formal dispute processes.
Are routing guides standardized across retailers?
No. Each retailer has its own guide with unique codes, shipment procedures, and documentation formats. Always follow the most recent version.
How often are routing guides updated?
Some retailers update them quarterly or annually. Always subscribe to vendor communication alerts to avoid missing revisions.