Logistics Deduction Recovery

Recover revenue lost to invalid OS&D deductions and strengthen
your logistics processes to reduce future claims.
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Retailer deductions for overages, shortages, and damages (OS&D) can quickly add up, cutting into margins and increasing operational complexity. Many of these deductions are invalid, misapplied, or lack sufficient documentation to support the claims.

IAB Solutions helps CPG manufacturers recover revenue from OS&D deductions while improving visibility into the shipping and fulfillment issues that drive them, thereby reducing future losses and strengthening operational performance.

The Challenge with Logistics Deductions

OS&D deductions are often difficult to validate and resolve due to inconsistent documentation, data gaps, and varying retailer requirements. Claims may include unverified shortages, damages without sufficient proof, or discrepancies between shipping and receiving records.

These deductions are frequently based on incomplete or conflicting information, requiring coordination across logistics, customer service, and warehouse teams to investigate. At the same time, internal teams are focused on managing daily order volume and incoming deductions, leaving limited time to fully assess and dispute each claim.

As a result, many logistics-related deductions are accepted or written off without thorough validation, leading to ongoing revenue leakage and unresolved operational issues.

How IAB Solutions Helps

IAB Solutions brings structure and consistency to the review of logistics deductions by aligning shipment data, supporting documentation, and retailer claims.

We analyze shipping records, proof of delivery, and retailer requirements to identify discrepancies between what was shipped, received, and recorded. By isolating gaps in data and documentation, we develop clear, evidence-based disputes that improve recovery outcomes.

Our team manages the dispute process from preparation through retailer interaction, ensuring claims are consistently followed up on and worked toward resolution. In addition, we identify patterns across deductions to highlight recurring issues within shipping and fulfillment processes, helping teams address root causes and reduce future deductions.

Where Logistics Deduction Issues Arise

Logistics deductions most often occur where shipping execution and retailer expectations do not fully align. These include:

  • Damages recorded without sufficient documentation
  • Mismatches between shipping, delivery, and receipt records
  • Incomplete or inconsistent proof of delivery
  • Variances between vendor and retailer data

 

These issues are often driven by process gaps, communication breakdowns, or differences in how shipment data is captured and interpreted.

Business Impact

Improving how logistics deductions are reviewed and validated helps organizations bring greater control to shipment-related revenue loss. By aligning deduction claims with accurate shipping and delivery data, companies can recover revenue that might otherwise be accepted or overlooked, while increasing confidence in dispute outcomes.

A more disciplined approach also creates clearer visibility into where breakdowns occur within shipping, fulfillment, and retailer receipt processes. This insight allows teams to address recurring issues at the source rather than repeatedly reacting to the same deductions.

As shipping data, documentation, and validation practices become more reliable, organizations can reduce the frequency of disputes and improve predictability across logistics operations. This results in stronger cost control, fewer avoidable deductions, and more consistent financial performance.

By improving both data accuracy and operational alignment, companies are better positioned to reduce risk, strengthen retailer relationships, and enhance overall supply chain efficiency.

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