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HRG

HRG has helped Retail Suppliers recover over a BILLION DOLLARS in invalid deductions claims.

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We help shield the bottom line of companies that make or sell products that are sold at major retailers like Walmart, Target, Kroger, Best Buy, and Walgreens.

02/13/2026

If you’re seeing “excessive defectives” fees in February, you’re not alone—and it doesn’t automatically mean your product is failing.

Returns volume is massive: NRF projects $849.9B in 2025 returns (15.8% of sales), with online returns even higher.

That volume creates noise: damage, handling issues, policy returns, even fraud.

In our latest post, we share a simple Defectives Audit Playbook:
✅ separate defect vs. damage vs. policy returns
✅ validate the retailer’s rate math
✅ build a “Defectives Evidence Pack”
✅ run a heat map by DC and carrier lane to find the real root cause

Learn more: https://loom.ly/7nPobSU

02/11/2026

If your team feels like deductions keep popping back up… you might be right.

Duplicate deductions often happen when the same event gets billed twice under different codes (shortage + compliance, return + defectives, pricing + promo math). It’s usually not malicious—it’s a system overlap.

One benchmark worth noting: Attain’s 2021 Customer Deduction Survey found the median share of deduction dollars that are invalid is 5.1–10%, and the median recovery of those invalid amounts is 60%.

That’s a lot of money to leave on the table.

In our new post, we share:
✅ a “deduction fingerprint” that catches duplicates
✅ matching rules (exact, near, and “same story, different code”)
✅ a 45-minute weekly routine to keep the leaks from returning

Learn more: https://loom.ly/KkfkMpI

02/09/2026

If compliance feels harder than it used to, you’re not imagining it.

Most suppliers are juggling multiple “sources of truth” simultaneously: vendor guides, portal rules, and warehouse/3PL checklists. When those drift out of sync, chargebacks happen—even when everyone thinks they did the right thing.

Attain’s 2021 survey highlights common deduction drivers such as early/late delivery, fill rate, Electronic Data Interchange (EDI)/Advance Ship Notice (ASN) errors, and transportation/routing issues.

In our new post, we share a practical survival plan:
✅ build a version-controlled compliance library
✅ translate rules into simple ship-ready checklists
✅ run a monthly compliance change review
✅ close the loop (chargeback → root cause → prevention)

Read more: https://loom.ly/pARZutI

02/06/2026

February is reconciliation month for many supplier teams.

The chaos slows down just enough to notice something uncomfortable:
your deductions didn’t stop… they just got quieter.

The Return Value Chain Federation (RVCF) has cited customer deductions reaching up to 5%–15% of revenue, depending on industry.

That’s not “cost of doing business.” That’s margin walking out the door in small increments.

If you want a simple February reset:
✅ build a single deduction register
✅ bucket items (valid / invalid-winnable / not worth it)
✅ run a 45-minute weekly reconciliation huddle
✅ standardize proof packets so disputes move faster

New on the HRG blog: “The February Reconciliation: Deductions Hiding in AP.”
Read: http://www.hrg-audit/post/deductions-hiding-in-ap

02/04/2026

Tariffs don’t just raise costs.

They create pricing deductions when your reality moves faster than a retailer’s system.

A cost change + price file lag can trigger repeated “cost difference” offsets across every invoice until alignment is fixed. And recent U.S.–China trade actions extend certain tariff-related measures into November 10, 2026—stability, but with a clock on it.

If you want to stop pricing deductions fast:
+ Run a 48-hour price file sync sprint
+ Standardize a pricing proof packet
+ Hunt repeaters (same item, same delta, different invoice)
+ Add one prevention control so it doesn’t come back

New on the HRG's blog: “Tariff Whiplash: Stop Pricing Deductions Fast.”
Read: https://loom.ly/qlMSPBk

02/02/2026

February is when many supplier teams get blindsided.

Not by sales. By everything that comes after.

Returns settle. Refunds get reconciled. Disputes pile up. And suddenly your remittance doesn’t match the story your Q4 shipments told.

NRF projects $849.9B in retail returns for 2025—that volume creates downstream deductions, offsets, and “small” short pays that add up fast.

If you’re feeling the February squeeze, here’s the move:
✅ triage (patterns vs. one-offs)
✅ standardize a research package
✅ calendar your deadlines
✅ track repeat rate (not just totals)

New post on the HRG blog: “February Chargebacks: Why Disputes Spike Now.” Read more: https://loom.ly/1BVtBXI

01/30/2026

Proof standards are rising in deduction, and returns disputes—and it’s not your imagination.

NRF reports that 9% of returns are fraudulent, and that 85% of retailers are employing artificial intelligence (AI) to detect or prevent return fraud.

Reuters also highlighted retailers deploying AI tools to flag suspicious returns.
For suppliers, that often means:
+ stricter documentation fields
+ higher photo/identifier expectations
+ more auto-denials when proof is incomplete
+ tighter timelines

Best Q1 move: build a “retailer-ready proof pack” template by claim type (delivery, damage, defectives, returns/disposition). Consistency wins.

The full blog includes a practical proof pack checklist. Read: https://loom.ly/SRwfm2Y

01/28/2026

Q1 is reconciliation month, which makes it prime time for double-dip deductions.

The same event can hit twice (remittance + portal) or appear under two different codes (shortage + “handling”).

Different label. Same box.

Returns scale makes it easier for duplication to hide. NRF projects $849.9B in returns in 2025.

A practical defense:
+ build a “claim fingerprint” (invoice/PO/date/item/amount)
+ reconcile across channels (not just one portal)
+ flag repeats after disputes or credits
+ dispute with a clean “duplicate of claim X” package

The full blog includes a simple double-dip detection checklist. Read: https://shorturl.at/9pbQj

01/26/2026

January is markdown season. Retailers clear inventory fast—and many suppliers feel it later as price protection, markdown allowances, and promo true-ups.

One reason it stings: post-holiday demand typically cools. A LendingTree study found retail spending drops an average 22.4% between December and January.
If you’re seeing markdown-related debits, a simple validation framework helps:

Did we agree to fund it?
+ Did the markdown happen as claimed (stores/dates/items)?
+ Does the deduction match the agreement (rate/window/no duplicates)?

Markdown allowances are a real mechanism (margin protection tied to price reductions).

But “real” doesn’t always mean “right.”

Full blo blog includes a Markdown Proof Pack checklist you can standardize for Q1. Read: https://shorturl.at/VN3Yo

01/23/2026

If January feels like “returns and disputes season,” you’re not imagining it.

NRF projects $849.9B in returns in 2025, and estimates 19.3% of online sales will be returned. NRF also reports 9% of returns are fraudulent.

For suppliers, post-holiday e-commerce disputes often show up as deductions tied to:
+ split shipments
+ delivery disputes
+ returns that don’t match refunds
+ marketplace fee adjustments
+ duplicates

A simple way to reduce the chaos: build one repeatable “dispute package” and use it every time (order + shipment proof + return scans + refund trail + one-page narrative).

Address

1710 SW Commerce Drive, Suite 16
Bentonville, AR
72712

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Opening Hours

Monday	8am - 5pm
Tuesday	8am - 5pm
Wednesday	8am - 5pm
Thursday	8am - 5pm
Friday	8am - 5pm

Website

http://www.HRG-audit.com/

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