EDI Orders Exceptions Guidelines (Fred’s Trading Partners’ Program)

EDI Orders ExceptionsEDI Orders exceptions refer to situations when the flow of the order is altered due to extenuating circumstances. Examples include but are not limited to, constrained product, return or recall of defective product, etc.

Return Authorization Process

FRED’S distribution centers are responsible for the consolidation of returns to vendors of FRED’S stores.

  • A return request will be initiated by a FRED’S Merchant.
  • Vendors must be acknowledge and approve the return request within 24 hours by email. (Disposition and a return authorization should be included in the email.)
  • FRED’S Merchant will notify the DC(s) and the DC will coordinate with the Supplier in the return of product.
  • In the event that non-ordered merchandise is accepted or rejected by the FRED’S Merchant, an expense offset will be assessed by the Distribution Center.
  • Merchandise that is deemed to be sub-standard (defective, damaged, un-saleable) will be returned to the vendor and be assessed an offset expense.
  • Recalls due to manufacturer direction are subject to a chargeback for all handling costs associated with the return. These will be billed at 10% of the value of the goods.
  • All return shipment regardless of the type will be shipped collect or prepaid and deduct. Fred’s assumes no responsibility for shipment cost or goods in transit.
  • FRED’S will not research shortage claims over six months old.

Overages, Shortages, and Damages (OS&D)

The following description of FRED’S OS&D procedure provides a brief overview of the procedure and what Suppliers can expect when there is an OS&D claim.

  • DC will start receiving product against the FRED’S purchase order.
  • If an OS&D is confirmed, the DC will initiate the OS&D claim process, VNC, as they place the PO/product on hold in the DC without being received.
  • The DC “Receiver” documents the damages and variances and sends the VNC report to the FRED’S merchant:
    • Overages – FRED’S Merchants call Supplier/Broker, informs them about overage and determines how to address.
    • Shortage – FRED’S merchant/Accounting notifies the Supplier/Broker that the invoice will be deducted according to the shortage.
    • Damages – FRED’S Merchant/Accounting discusses with the Supplier/Broker and Carrier about filing a claim for damaged product. They also determine the handling details of destroying, dumping, or returning the product.
  • Suppliers/vendors are expected to provide the FREDS Merchant a minimum of the following detail pertaining to any OS&D decision:
    • Return authorization number
    • Return address for product
    • Carrier (shipper number where applicable)
    • Carrier contact: email, phone number and fax number
    • Vendor contact, phone number, email, and fax number at return address
    • Estimated pick up date by carrier
    • Special handling instructions/expectations/requests.

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