What are Typical Vendor Charge Backs?

In developing dozens of vendor compliance manuals, we have seen a wide variety of items, categories, and lists of vendor charge backs. We feel like with a new compliance program, you should include the following, to start with:



    • Shipment did not conform to routing guide

    • Early shipment without approval

    • Improper PO# on carton

    • Product substitution

    • Late shipment or shipment past PO cancel date

    • Product does not meet specifications

    • Merchandise not poly bagged to specs

    • Product does not have SKU# or proper bar code

    • Incorrect labels or placement of labels

    • Product lacks country of origin or certificate

    • Merchandise not packaged according to specs, repackaging required

    • Merchandise required 100% inspection

    • Mixed POs on pallet or in cartons

    • Mixed SKUs per carton

    • Incomplete bill of lading not complete

    • Merchandise damage not caused by carrier

    • Packing list incomplete

    • Delivery without appointment


Of course there will be other items that will need to be included further down the road, once your program has been implemented and running for a while. The charge backs and the dollars associated with them should have enough "teeth" but not overly aggressive to irritate your vendors.