Freight deductions are among the most disputable and winnable chargebacks for CPG brands, yet many go unchallenged. Invalid deductions can drain up to 3% and wipe out up to 30% of your profit margins.
For growth-stage brands, that’s the difference between hitting profitability targets or falling short. By proactively addressing freight deductions, you can prevent revenue erosion and recover dollars that might otherwise slip away.
But brands need more than process tweaks — they need expertise. That’s why we sat down with Miguel Rivera, Deductions Expert at Glimpse, who brings over a decade of experience to the table across CPG finance, supply chain, and deduction management.
In this guide, Miguel shares a tactical framework for investigating, disputing, and recovering freight deductions — one that has already helped Glimpse clients reclaim millions in lost revenue.
Why Freight Deductions Are Highly Disputable
Not all deductions are created equal. Many, like trade promotions or advertising allowances, tie back to contracts you’ve already agreed to. As a result, they’re tough to challenge.
But freight deductions fall into a different category. “Because they’re based on the physical movement of goods,” Miguel explains, “You’ll almost always have a paper trail to back up your claim. This makes freight deductions worth pushing back on.”
While freight deductions are low-hanging fruit for CPG brands, this leverage is only half the battle. Uncovering the issues behind common deductions is what helps you drive real recovery.
Frequent Human Touchpoints Lead to Human Error
As freight moves, it passes through many touchpoints. Drivers, warehouse staff, and retailer employees all play a role in moving goods from origin to destination.
“When you work with people,” Miguel notes, “There’s always going to be a percentage of error.” Complete shipments may be mistakenly marked short. Illegible labels may create confusion at receiving docks. Miscommunications may result in erroneous late fees.
With so many people involved, documentation, counting, and delivery errors are inevitable — but with the right records, they’re also very disputable.
Recurring Patterns Reveal Common Recovery Opportunities
Consistent deduction codes, including those from the same SKU, lane, or retailer, usually point to underlying process gaps. Consistent shortages might be related to packaging issues, while ongoing delivery penalties may be tied to misaligned 3PL and retailer handoffs.
But repeated errors don’t just cause losses — they also create patterns you can point to as evidence. “Think about how often you’re getting deductions from a retailer,” Miguel explains. “If it’s at regular intervals, like every month, that points to a trend.”
Once you spot recurring deductions, you can build a strong case for recovery and prioritize these disputes going forward.
Retailer Claims Often Collapse Under Scrutiny
At first glance, deductions can seem airtight — until you review the details. Appointment confirmations might discredit “no-show” fees, while time-stamped delivery photos may disprove incorrect damage and shortage adjustments.
“Retailers often give a generic, copy-paste denial,” Miguel explains, “And it doesn’t always hold up when you push back.” Take immi, for example. They initially lost $23,000 to a freight deduction, but Glimpse Deductions Analyst Zach stepped in, challenged it, and successfully recovered the funds.
Deductions that seem like closed cases can often reveal themselves as some of the easiest to overturn, but only when the process is automated. Manually, teams would need to review every freight deduction, cross-check supporting documents, and identify inaccuracies. While straightforward in theory, the process is painstaking and time-consuming.
Critical Documentation Needed to Protect Your Revenue
Freight deductions are only recoverable if you can back up your case. A complete, organized paper trail empowers you to turn deductions into recovered dollars.
Bill of Lading
Your Bill of Lading (BOL) is the cornerstone of any freight dispute. It’s the legal record of goods shipped, including quantities, shipment conditions, and shipping terms. This document also clarifies what left your dock, when it left, and who is financially responsible for the freight.
“A clear, signed, detailed BOL is your strongest defense,” Miguel explains. “Say your terms specify that the retailer covers freight, but charges show up anyway. You’ve got strong grounds for reversal.”
With a thorough BOL, you can quickly shut down inaccurate or mismatched claims. Take Kin Euphorics, for example — using their BOL, they successfully disputed and recovered over $10K on one chargeback.
Purchase Order
A purchase order (PO) links the retailer’s deduction invoice back to your fulfillment. This document provides a clear record of what was ordered, in what quantity, and under what terms.
“Once you get a freight-related invoice,” Miguel explains, “The first thing you want to do is look at the PO. Make sure that it actually includes your brand’s product.”
Accurate POs make it easy to spot incorrect charges and strengthen your ability to dispute deductions that don’t apply.
Carrier Contract
Carrier contracts spell out service expectations, delivery timeframes, and responsibilities for loss or delay. These agreements are especially useful for determining liability when shipments go wrong.
“Let’s say a retailer signs the delivery receipt without inspecting the shipment and misses damage or discrepancies,” Miguel says. “Carrier contracts may limit the timeframe during which receivers can note exceptions and claim deductions.”
When timing or responsibility is in dispute, carrier contracts can shift responsibility away from your team. However, this only applies if distributors such as KeHE or UNFI handle the pickup. If you use your own freight carrier and the load is damaged in transit, the responsibility falls on you or your chosen carrier.
Proof of Delivery
Also known as delivery confirmations, Proofs of Delivery (PODs) are signed receipts confirming when shipments arrived and in what condition. Time-stamped, signed PODs are critical for countering claims of missing or delayed goods.
“PODs also show who signed for shipments and which carrier signed and dated it,” says Miguel. “They’re effective means for proving the validity of several types of claims.”
Signed PODs (alongside clearly stated shipping terms) help you quickly overturn claims before they eat into margins.
Supplementary Records
Beyond the core documents, extra records like pack lists, invoices, carrier emails, and internal tracking details provide additional context for your shipments. These records act as a safety net, confirming quantities and validating timelines, even when BOLs and PODs are missing or incomplete.
“If you keep good supplementary records and make sure your freight handler gets all documentation signed, scanned, and legible,” Miguel explains, “You’ll immediately strengthen your ability to dispute deductions.”
Instead of hinging your case on one strong proof point, collecting supporting documentation builds a stronger paper trail that reinforces your claim.
Miguel’s Step-by-Step Process for Challenging Freight Deductions
Miguel’s systematic approach to investigating and disputing freight deductions involves six steps designed to maximize recovery and protect revenue.
Step 1: Review and Identify Freight Deductions
Start by reviewing deduction invoices as soon as they arrive. Note the type of deduction — like shortages, late deliveries, or damages — and gather all retailer report data.
Keep in mind that reporting methods vary across retailers. KeHE, for example, requires portal logins, while UNFI can email information directly.
Collecting data early ensures a timely investigation and prevents missed recovery opportunities, laying the foundation for a successful dispute.
Step 2: Verify Product and PO Details Against Deductions
Next, cross-check the SKU(s), purchase order number, and quantities against your internal records.
“Many deductions we see don’t even belong to our clients,” Miguel says. “They’re often misapplied or linked to a different shipment.”
Verifying details upfront ensures you’re disputing the correct claim and prevents wasted effort.
Step 3: Gather Documentation to Support Your Case
Once your deduction is verified, compile all supporting documents, including BOLs, POs, carrier contracts, and delivery confirmations. Ensure each document is signed and accurately reflects shipments, dates, and responsibilities.
“Don’t leave it sitting in a file cabinet,” Miguel explains. “Signed, clear paperwork is the key to winning deductions.”
A thorough paper trail makes it difficult for retailers to deny disputes and reduces the chance of repeated errors.
Step 4: Analyze Patterns to Strengthen Your Argument
Once all of your documentation is in order, review it for alignment. Check freight terms, verify quantities shipped, and ensure the retailer acknowledged receipt. Explore recent deductions, watching for unusual deduction frequency, common SKU issues, and patterns in recent disputes.
According to Miguel, “Recurring shortages, for example, often highlight areas where processes or paperwork don’t align — even when shipments are correct.”
Spotting patterns doesn’t just help you recover revenue. Once you identify recurring themes, you can tackle the root cause, preventing future deductions.
Step 5: Submit a Clear, Evidence-Backed Dispute
Write a concise letter including discrepancies, documentation, and any necessary explanations. If needed, be sure to reference carrier contracts and shipping terms.
“Most of the time, if you articulate your claim accurately and clearly,” Miguel emphasizes, “The retailer won’t be able to deny it.”
Well-prepared submissions increase approval chances and establish a consistent, systematic process that gets results.
Step 6: Follow Up and Escalate if Needed
Once the letter is sent, keep an eye out for the retailer’s response. If you don’t receive a reply within 14 days, follow up on a weekly basis until the dispute is resolved. If the retailer issues a denial without citing a reason, escalate your case to vendor compliance or category management teams.
“You can’t just send the dispute and hope it sticks,” says Miguel. “You’ve got to keep pushing for results.”
Persistent follow-up accelerates recovery and prevents disputes from slipping through the cracks.
Turn Lost Revenue into Recovered Profit with Glimpse
With the right technology and expertise, you can turn freight deduction recovery into a strategic advantage rather than a reactive task.
Glimpse’s unique combination of AI and expert oversight helps you automate the entire deduction management workflow from end to end. We handle categorization, reconciliation, dispute filing, and follow-up, freeing your teams to focus on business goals and growth.
Our platform also unifies fragmented data sources, including retailer portals, ERP, and accounting systems, creating a single, simplified source of truth with real-time deduction insights.
These insights make it easy to identify which deductions are worth challenging, which disputes will recover the most revenue per effort, and where recurring patterns may be quietly eroding profits.
Stop letting deductions bleed your margins. Book a demo today and let AI and our team of Deductions Experts, like Miguel, manage your deductions.
