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Suppliers, Meet Your Deduction Recovery Ally: Woodridge Retail Group

Meet Your Deduction Recovery Ally: Woodridge Retail Group

In the fast-paced world of consumer packaged goods (CPG), suppliers often navigate a maze of fees, fines, and deductions imposed by retailers. These deductions can significantly impact a supplier's bottom line, making it crucial to find practical solutions. This blog post will explore how Woodridge Retail Group's Deduction Recovery Program, powered by HRG, can help CPG suppliers minimize deductions and improve profitability.

Common Retailer Fees and Deductions:

  1. On-Time, In-Full OTIF is calculated based on two metrics: on-time delivery and in-full delivery. Monetary penalties are also calculated as a percentage of the order.

  2. Markdown Allowances Retailers may request suppliers to temporarily reduce their product prices to boost sales or clear inventory. Suppliers are often expected to cover the cost difference, resulting in markdown allowances.

  3. Chargebacks: Retailers have strict compliance standards, and when suppliers fail to meet them (e.g., late shipments, incorrect labeling), they may incur chargebacks. These fines cover the retailer's expenses associated with the errors.

  4. Return Allowances Unsold or damaged goods returned by retailers can result in return allowances, where suppliers must reimburse retailers for these items.

  5. Advertising and Promotion Fees Suppliers often contribute to retailer-led marketing efforts, such as circulars, in-store displays, or online campaigns. These costs can add up but are essential for product visibility.

Woodridge Retail Group's Deduction Recovery Program:

Woodridge Retail Group's Deduction Recovery Program, powered by HRG, is a game-changer for CPG suppliers facing the challenges of deductions. Here's how it can help:

  1. Automated Deduction Management: The program leverages advanced technology to automate the deduction management process, quickly identifying, categorizing, and resolving deductions.

  2. Data Analytics: It gives suppliers valuable insights into deduction trends, enabling them to address root causes and reduce future deductions.

  3. Streamlined Communication The program facilitates communication with retailers, streamlining the dispute resolution process and reducing the time and effort required to recover funds.

  4. Expert Support CPG suppliers benefit from HRG professionals who deeply understand deduction recovery and retailer compliance.

  5. Maximizing Profitability Suppliers can enhance profitability and strengthen their partnerships with retailers by minimizing deductions and improving operational efficiency.

Conclusion Navigating the world of retail fees, fines, and deductions can be challenging for CPG suppliers. However, with Woodridge Retail Group's Deduction Recovery Program, powered by HRG, suppliers have a powerful tool to minimize deductions, improve profitability, and build more profitable and sustainable partnerships with retailers.

Deduction Recovery Solutions, Powered by HRG

Woodridge Retail Group’s deduction recovery solutions are powered by HRG, a pioneer in deduction recovery – including compliance, promotional, allowances, and post-audit defense, as a few examples. Clients include some of the largest brands in every category across all the major retailers.

Over a billion dollars recovered and counting. What are you waiting for? Let’s talk.

About Us

Woodridge Retail Group is a sales & marketing agency focused on accelerating business growth and profitability online and in stores. We meet clients where they are and commit to growing their businesses. That commitment is core to who we are.

From national retailers like Walmart, Target, CVS, and online giant Amazon to regional retailers like Texas’ H-E-B, Woodridge is with you every step of the way.


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