For most CPG organizations, a closed deduction signals the end of the process. However, for this global food and pet care manufacturer, it signaled something else entirely. It pointed to a potential blind spot.
Despite well-established processes and a trusted third-party partner, leadership had a lingering question: was every recovery opportunity truly being captured?
To find out, they engaged IAB Solutions to conduct a focused review of closed deductions. That decision confirmed their suspicions, ultimately uncovering $3.5 million in revenue that had been left behind within deductions already considered complete.
The Challenge: Hidden Revenue in “Completed” Work
On the surface, the client’s deduction recovery program was well-run. Claims were consistently reviewed, disputes were submitted, and deductions were closed in a structured and timely manner.
However, in high-volume environments, even the most effective recovery models must balance speed, scale, and depth. Over time, that balance can create gaps in recovery performance.
Several factors contribute to this dynamic:
- High deduction volumes that limit how deeply each claim can be reviewed
- Limited capacity for follow-through, including re-disputes and escalation
- Under-tolerance thresholds that cause smaller deductions to be overlooked
- Claims closed before full recovery is achieved, including partial payments
- Processes focused on speed and resolution rather than maximizing recovery
These are not process failures, but natural trade-offs of operating at scale. As a result, some invalid deductions were not fully pursued, while others were only partially recovered, leaving meaningful revenue embedded within closed claims.
The Approach: A Closed Deduction Review
IAB conducted a closed deduction review, a targeted second-pass analysis focused exclusively on claims that had already been worked and marked as resolved.
Because the review was limited to closed deductions, it operated independently of ongoing recovery efforts and required no disruption to the company’s existing workflows. This allowed IAB to reassess completed work through a different lens with a focus on identifying missed and under-recovered opportunities.
While the client’s team continued business as usual, IAB independently:
- Reviewed closed claims to identify invalid or under-recovered deductions
- Developed detailed evidence packages to support each recovery opportunity
- Worked directly with retailers to reopen disputes and recover funds
IAB’s fees are performance-based, meaning clients only pay when revenue is successfully recovered. This model ensures our success is tied directly to yours, with no upfront costs or financial risk.
The Results: $3.5M Recovered from Closed Deductions
The results illustrate how much value can remain hidden, even within a well-managed process:
- $16.8 million in claims reviewed and validated
- $3.5 million in invalid deductions recovered
All recoveries came from deductions that had already been reviewed, processed, and marked as closed.
The Sources of Recovery: Where Revenue Was Found
IAB recovered revenue across several common deduction categories, including:
A large portion of recoveries came from major retailers such as Amazon, Walmart, Target, Kroger, Costco, and Dollar General.
The Key Takeaway: Closed Doesn’t Always Mean Complete
Closed deductions are often treated as final, but this case demonstrates they can still contain meaningful recovery opportunities.
Not every claim always receives the same level of scrutiny. A second-pass review helps close that gap, uncovering revenue that would otherwise go unclaimed while also providing greater visibility into recurring deduction issues.
Contact IAB Solutions today to see what may still be recoverable within your closed claims.
