Dealing with deductions is still a big problem for many suppliers in this ever-changing world of retail. This is especially true for big stores like Walmart. In 2024, despite better SOPs and technology, dealing with deductions at Walmart remains challenging. This article aims to break down this problem and suggest simple solutions to help suppliers.
Understanding the Challenges
- Walmart Deduction Codes
Walmart assigns specific codes for each deduction. This approach is different as compared to the other stores that prefer to simply describe the issue. It makes understanding those codes imperative for the suppliers in order to dispute the deductions properly.
It's difficult because you have to figure out 100s of these codes and gather proof to dispute them, which can be a steep learning curve for anyone.
- High Volume of Deductions
At Walmart, the sheer number of transactions exacerbates every issue. The large volume of invoices and deductions associated with them can quickly become overwhelming. It becomes remarkably challenging for suppliers to keep track of and manage each case manually.
- Complex Portal Navigation
The Retail Link and Accounts Payable Dispute Portal (APDP) are vital tools for managing deductions. Although, their complexity can become a hindrance to effective application. Suppliers often face navigation difficulties, struggling to locate necessary information or perform essential actions.
- Documentation
Having the right documents like delivery proof and invoices is really important when disputing deductions. Getting these documents quickly and correctly adds another layer of difficulty. Issues such as items being billed but not shipped or missing cartons pose particular challenges.
Strategies for Suppliers
1) Utilize Automation
Automation can streamline deduction identification and management, minimizing the need for constant manual oversight. Now automation can be developed in-house as well but it gets too expensive to get the technology. Therefore, outsourcing automation seems the best option for most suppliers.
2) Data Analysis for Insights
Suppliers need to conduct deep data analysis of deductions to pinpoint the root causes. Understanding the patterns and reasons behind frequent deductions can lead to targeted solutions, preventing future occurrences.
For example, from our clientele data, it is clear that certain codes are issued more often than others. Given that, it only makes sense for suppliers to try to prevent them.
Here are some of the frequently issued codes:
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- Code 21: Concealed Shortages
- Code 22: Merchandise Billed not Shipped
- Code 24: Carton Shortage/Freight Bill Signed Short
Are you interested in learning more about these codes, including why they're issued and what documents you need to dispute them? Explore our comprehensive guide on Walmart Deduction Codes for all the details.
3) Enhance Operations and Procedures
Streamlining operations and standard operating procedures (SOPs) is crucial in minimizing the incidence of valid deductions. Suppliers should focus on tightening their supply chain. It allows them to ensure accuracy in purchase orders. This in turn enhances the quality of supplier agreements to preempt deduction issues.
How iNymbus Can Help!
iNymbus offers a comprehensive solution to tackle all the challenges related to Walmart Deduction Management. With its advanced technology and expert team, iNymbus streamlines the entire process through automation.
- Automatic Deduction Detection: iNymbus’ cutting-edge technology automatically identifies deductions as they arise, whether it's through emails or the retailer portal.
- Validation and Grouping: Deductions are validated and grouped into various types such as shortages, pricing, and compliance, assisting targeted resolution strategies. Yes, iNymbus supports all types of Walmart Deductions.
- Seamless Documentation Retrieval: iNymbus excels in automatically retrieving all claim documentation, whether it's stored in a portal, communicated via EDI, or resides within emails. As a result, important documents that are tedious to extract are no longer a challenge for suppliers. For example, a Bill of Lading (BOL) or Proof of Delivery (POD).
- Hassle-Free Claim Filing: With the Accounts Payable Dispute Portal (APDP) integration, iNymbus expedites the claims filing process. This integration reduces manual effort and time investment.
Having trouble navigating deductions on APDP? Check out our guide to learn more and streamline your process today!
Results You Get With Inymbus
With the above-mentioned process, we are able to bring phenomenal results for our clients. Here are some of the important KPIs
Cost- After automating the whole process with iNymbus our clients have been able to reduce cost-per-claim by up to 80-90%.
Case Study: Learn more about how we were able to achieve similar results for a Large Book Distributor.
Efficiency- With our cutting-edge RPA technology we have been able to speed up the process by up to 30x.
Case Study: For a Walmart Distributor who had a backlog of 2 years, iNymbus cleared that backlog within weeks.
Manpower- After embracing automation you will not require as many people to handle deductions. It allows you to focus on other more important tasks for the business.
Case Study: A retail giant with a large team of around 40 individuals, managed deductions from over 20 retailers. They were able to reduce that team to a handful with the help of iNymbus.