The CPG Deductions Playbook

Deep dives into revenue planning, deduction recovery, and operational strategies for CPG brands. Written by industry experts.

Resources

Industry Insights8 min read

How CPG Brands Lose Millions to Invalid Deductions

Up to $80K is recoverable per $1 million in deductions. Learn why inefficient deduction processes are silently killing your margins and what you can do about it.

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Playbook12 min read

The UNFI & KeHE Survival Guide: Navigating Distributor Deductions

A comprehensive breakdown of deduction complexities with America’s largest natural food distributors. From baseline fees to UDR response windows, here’s what you need to know.

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Strategy6 min read

Shortage Claims: Your Highest-Value Recovery Opportunity

With 74-97% win rates across all issuers, shortage claims represent the biggest opportunity to recover lost revenue. Here’s the data and strategy to maximize recovery.

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Guide15 min read

UNFI Cash Application & Deductions: The Complete Guide

From setting up EDI invoicing to understanding MCB documents and navigating prepayments. Everything you need to know about financial operations with UNFI.

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Best Practices10 min read

Deduction Management Best Practices for Growing Brands

Common mistakes brands make with deductions and how to build processes that scale. From GL mapping to shipping documentation, get your foundation right.

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Reference2 min read

What is Walmart OTIF? 98% Threshold, 3% Penalty, 90-Day Window

Walmart OTIF penalizes 3% of PO value on shipments below the 98% on-time, in-full threshold. The dispute window is 90 days.

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Playbook3 min read

What is a KeHE UDR? The 48-Hour Window, K-Solve, and 73% Win Rate

A KeHE UDR finalizes 48 hours after issue. Properly disputed UDRs win at 73%. K-Solve accepts follow-up disputes for 6 months.

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Industry Insights4 min read

Why Are My Distributor Deductions Growing? 4 Causes for CPG Brands

If your deduction line is growing faster than revenue, the cause is usually volume, compliance tightening, KeHE bandwidth, or distributor restructuring.

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Playbook2 min read

What Are Amazon Shortage Claims? How to Dispute and Recover

An Amazon shortage claim is Amazon's assertion you shipped fewer units than the PO. Recovery rates drop from 95% to 25% after 90 days.

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Reference2 min read

What is Target's Perfect Order Program? Penalties, Metrics, and Windows

Target's Perfect Order Program rolled out May 4, 2025. Penalties run $0.75/carton on barcode and ASN accuracy and 3% of COGS on availability.

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Reference2 min read

What is a UNFI MCB? Manufacturer Chargebacks Explained

MCB stands for Manufacturer ChargeBack — UNFI's term for distributor deals passed to retailers. Here's how MCBs work and how to dispute.

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Playbook4 min read

How Do I Dispute an Early Payment Discount Deduction from UNFI?

UNFI takes the 2% early-pay discount even when they pay late. Here is how to validate, dispute, and recover early payment discount deductions.

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Playbook4 min read

How to Escalate a Denied Deduction Dispute with a Retailer

30% of deduction recovery work happens after the initial dispute. Here is the escalation process that actually gets money back.

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Playbook3 min read

What Documentation Wins a Distributor Shortage Dispute?

The single most important document is a signed POD showing exact piece counts. Here is the full document hierarchy for winning shortage disputes.

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Strategy4 min read

Should I Hire More AR Staff or Automate Deduction Management?

Adding headcount doesn’t fix error-prone manual processes. Here is when to hire vs. automate for deduction recovery.

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Industry Insights4 min read

How Much of My Deductions Should I Be Recovering?

96% of distributor deductions go undisputed. On $1M in deductions, $80K-$150K is typically recoverable. Here are the benchmarks.

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