Success! You’ve packed, marked, and shipped your products to KeHE in accordance with the distributors’ guidelines, and now the only item left on your to-do list is to bask in the glow of a job well done. Unless, of course, you receive an unwelcome surprise in the form of an unloading discrepancy report (UDR) instead.
UDRs are generated by KeHE’s receiving department if there are any discrepancies between what was ordered and what was delivered, including shortages and overages, as well as damaged, mis-shipped, short-dated, and/or expired products. UDRs detail the products, quantities, and reasons behind the report and are sent to the supplier fax number or email address that receives the purchase order (PO).
Suppliers have only a 48-hour window to respond to a UDR, so it’s important not to get caught off guard once the clock starts counting down.
This article will cover:
The most common receiving discrepancies at KeHE.
What to do when you receive a UDR, including dispute support.
Steps you can take to avoid UDRs, including partnering with SPS for EDI.
Related Reading: KeHE Deductions and Invoice Prefixes
Common Receiving Discrepancies at KeHE: Shortages and Overages
According to the Supplier Policies and Procedures, KeHE’s case count is king. KeHE explicitly states that it will “not be liable for discrepancies between documentation signed at the point of origin by either its drivers or its third-party logistics drivers (including the bill of lading) and KeHE’s separately documented case count.”
So as a supplier, you must agree to rely on the case count confirmed at KeHE’s distribution center, not the BOL. UDRs are generated when that count is less than or more than the PO quantity.
Shortages
A shortage describes when KeHE’s case count finds that the amount of product received is less than the quantity provided in the PO for any SKU. For example, if a supplier invoices for 300 bottles of shampoo, but KeHE’s distribution center records that only 250 were received, KeHE will send a UDR.
Overages
An overage describes when KeHE’s case count identifies that the supplier shipped more product than what was stated on the PO for any SKU. For example, if a supplier invoices for 300 bottles of shampoo, but KeHE’s distribution center records that it received 350, KeHE will send a UDR to start the process of what to do about the extra shampoo.
What To Do When You Receive a UDR from KeHE
If you receive a UDR from KeHE, take the following steps:
Remember your timeline: KeHE wants you to respond with a resolution within 48 hours, so put it at the top of your to-do list.
Thoroughly review the UDR: This probably goes without saying, but a thorough review will ensure you fully understand the alleged discrepancy before attempting to fix it.
Note your UDR coordinator: The contact information for the UDR coordinator assigned to UDR will be listed directly on the document. This is the person you need to respond to within 48 hours.
Send a response to your UDR coordinator: How you respond will depend on the discrepancy and whether or not you think it’s accurate:
Discrepancy | How To Respond When It’s Accurate | How To Respond When You Don’t Think It’s Accurate |
Shortage | Provide an explanation for the shortage. | Provide proof documentation: the BOL and the packing slip. Both should accurately reflect the delivered quantity, not the original PO quantity. |
Overage | Let the UDR coordinator know what you want KeHE to do with the extra product.
You can make a case for why KeHE should accept it. Per the Supplier Policies and Procedures, if KeHE decides to go ahead and receive the extra product, it will receive it at a discount. KeHE may also charge a warehouse storage fee.
| Provide proof documentation: the BOL and the packing slip. Both should accurately reflect the delivered quantity, not the original PO quantity.
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What happens next will depend on the discrepancy and how KeHE responds. For example, if you receive a UDR for shortage but you’re able to provide a BOL and packing slip that note this shortage, KeHE should dismiss the UDR. But if the shortage discrepancy accurately reflects the situation, you should expect the PO price of the shorted products to be deducted from your next payment.
If you miss the 48-hour response window, you can still dispute the contents of a UDR, but you will need to handle it in K-Solve. K-Solve is a dedicated financial account tool integrated into the KeHE CONNECT Supplier® portal (i.e., the primary online hub for all business interactions with KeHE). K-Solve contains records for all supplier payments and deductions and is where financial reconciliation occurs.
Disputing tools
If you’d like some support for the disputing process:
This guide to disputing KeHE deductions in K-Solve offers a helpful overview.
SPS Revenue Recovery automatically retrieves deduction details and attaches all necessary proof documentation, so valid disputes are complete, compliant, and ready to submit.
Related Reading: KeHE Packing List and Bill of Lading Requirements for Suppliers
How To Avoid UDRs at KeHE
The best way to deal with UDRs is to avoid having to deal with them altogether. Here are some tips that will help minimize their occurrence:
Study KeHE’s Inbound Routing Guide. Pay close attention to the sections outlining the packing list and shipment requirements.
Ensure correct documentation. If you can’t match the quantity requested on the PO, note the actual quantity being shipped on the packing slip and BOL.
Contact KeHE’s Supply Chain team. If you want to talk to someone who can provide a better understanding of what UDRs are and how they function, reach out to your supply chain buyer.
Partner with SPS Commerce for EDI. Automating the order cycle reduces the opportunity for miscommunication and proactively identifies order discrepancies.