This is the second time the Compliance Advisory Board has looked at Pre-Deduction Notifications. When we first looked at this topic in 2007, a number of retailers were providing pre-deduction notification information, however the only way that vendors were able to track and manage the data was through spreadsheets, which was a time consuming, heavily manual process. As you read through the stories in this paper about how certain vendors are managing pre-deduction notification information today, you will see how the times have changed. Those companies who are taking advantage of available technologies or custom developing functionality within their ERP systems have been able to harness the power of this pre-deduction information to prevent recurring issues, avoid invalid deductions and even reduce post audit claims.

For the purposes of this report, a Pre-Deduction Notification (“Pre-Deduction”) is defined as information on trade promotions, compliance violations or shipping errors available or received from a retailer at least 7 days prior to the deduction being taken.

This report is divided into the following sections:

  1. Survey Responses
  2. Pre-Deduction Tracking – Company Profiles
  3. Actions Taken Based on Pre-Deduction Notifications
  4. Appendices
    – Best Practices from 2007 Report
    – Pre-Deduction Notification Retailer Grid


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