Case Study: How Valoroo Saved a CPG Company an Additional $1MM in Retail Deductions
Valoroo Helps CPG Brand Tackle Retail Deductions
Customer: One of the leading CPG (Consumer Packaged Goods) seafood manufacturers in North America, supplying major retail customers such as Amazon, dollar stores, pharma stores, grocery distributors, Sam’s Club, Target, and Walmart.
Valoroo Addresses Key Deduction Challenges
Background: Retail giants impose strict compliance requirements on suppliers, leading to frequent chargebacks and deductions for non-compliance. These deductions occur when retailers subtract money from supplier invoices due to issues such as:
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- Purchase Order Acknowledgment Delays – Orders must be acknowledged within a set timeframe.
- On-Time Delivery – Late shipments result in penalties.
- Accurate Shipping Documentation – Errors in paperwork can trigger chargebacks.
- Product Overages, Shortages, or Damages – Any discrepancies between orders and deliveries lead to financial adjustments.
- EDI/API Accuracy and Timeliness – Electronic data exchange must be precise and timely.
- Invoicing Accuracy and Timeliness – Incorrect or delayed invoices result in deductions.
These chargebacks can significantly impact a CPG company’s bottom line, making it crucial to identify, dispute, and recover lost revenue efficiently.
Challenge: The company was facing a high volume of deductions, leading to substantial financial losses. Despite disputing a significant percentage, over $1M remained unresolved, affecting overall profitability.
Impact: With Valoroo’s intervention and automation, the company saw a 95% reduction in outstanding deductions, saving an additional $1MM in retail deductions in just one year.
| DEDUCTIONS | YEAR 2023 | YEAR 2024 | DIFFERENCE |
| RECEIVED | $8,700,000 | $2,300,000 | -$6,400,000 |
| DISPUTED | $7,700,000 | $2,250,000 | -$5,450,000 |
| TOTAL ENDING BALANCE | $1,000,000 | $50,000 | -$950,000 |
"I’ve never seen such a low deductions balance, thank you all!!!"
– Vice President of Supply Chain
How the Valoroo Team Contributed:
While some automation tools are used to dispute chargebacks, the majority of the process remains manual and requires human expertise. Valoroo provided a dedicated team to handle the complex, time-consuming work of disputing deductions, ensuring greater accuracy, efficiency, and financial recovery.
Key Areas of Support:
Research & Root Cause Analysis
Investigated chargebacks, identified errors, and flagged necessary action items.
Shipment Documentation Management
Collected critical documentation (PO acknowledgments, signed bills of lading, packing lists, ASN EDI files, proof of delivery, and photos).
Supply Chain Coordination
Engaged key supply chain functions to consolidate data into formalized dispute documentation.
Claims Filing
Identified chargebacks that required claim filings (e.g., Overage, Shortage, or Damage caused by freight carriers).
Retailer Submission
Managed submission processes based on specific retailer portals and requirements.
Reporting & Executive Insights
Provided real-time monitoring and executive-level reporting on disputed deductions.
Conclusion:
With Valoroo’s expert dispute resolution team, this CPG company dramatically reduced deductions, improved financial recovery, and strengthened its compliance processes. By combining automation with human expertise, Valoroo helped streamline dispute management, enabling the company to recover lost revenue and protect its bottom line.
Want to reduce deductions and maximize recovery for your CPG business? Contact Valoroo today!
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