Shortage Deductions: Why They Spike During Peak Seasons
- The HRG Team
- 9 hours ago
- 1 min read
Let’s be real: peak season is chaos. Trucks run late, warehouses overflow, and every second counts. That’s exactly when shortage deductions—claims that your shipment didn’t arrive in full—start stacking up.
Why Shortage Deductions Happen
During Q3 or the back-to-school season, supply chains are stretched thin. Pallets shift, paperwork gets sloppy, and scanning errors multiply. Retailers don’t slow down—they flag shortages. And suppliers foot the bill.
The Numbers
Shortage deductions account for 40–60% of all retailer claims in peak shipping periods. And the timing couldn’t be worse—you’re moving your highest volume, your biggest promotions, and your most critical SKUs.
A Fictional Example
Imagine a snack supplier shipping 50 truckloads of single-serve chips in November. One DC misses a pallet scan. The system logs a shortage. The deduction? $42,000. The chips are probably sitting right there in the warehouse, but the claim still sticks unless disputed.
Why It Matters
Shortage deductions aren’t just one-time hits—they compound. A missed scan today becomes a post-audit claim 18 months from now if you don’t catch it early.
The Fix
The solution isn’t just double-checking shipments. It’s tracking deduction trends across multiple portals and acting fast. Automation can flag shortages. But only human expertise knows when to push back—and when to prevent the next one.
Don’t let peak season shortages steal your profits.
