Shortage / OS&D deductions

What is a shortage / os&d deductions?

A KeHE shortage starts at the dock. When KeHE's distribution center counts fewer cases than the purchase order, it sends you an Unloading Discrepancy Report (UDR) listing the products, quantities and reason. KeHE's Supplier Policies make that count the basis for payment and say the UDR governs (§6.6). If the count stands, KeHE deducts the shortage at the PO price (§6.7), usually as an invoice adjustment: your invoice number followed by IA.

KeHE's policy also says it won't repay a shortage a UDR supports, and that it isn't bound by documents signed at origin, including your bill of lading (§6.6–6.7). In practice KeHE does repay some shortages when the documents show its count was wrong. But the moment that decides most of them is the written UDR response, which KeHE requires within 48 hours.

Why does it happen?

• A miscount at the receiving dock, cartons signed for short on the bill of lading, or product logged to the wrong purchase order.
• A concealed shortage, where the outer packaging was intact but KeHE claims the inner count was short.
• Genuine carrier loss in transit — in which case the claim belongs with the freight carrier, not you.

Is it disputable?

Sometimes, and far more easily within 48 hours than months later. Answer the UDR in writing within 48 hours with the proof of delivery signed by a KeHE employee showing the cases received (§4.4, §6.6). After the deduction posts, you can still request repayment in K-Solve within 180 days; KeHE repays when its count was wrong, though less often once a UDR supports the shortage. If KeHE's own carrier picked up (Collect), title passed at your dock (§11.1), so send the bill of lading its driver signed plus your load records.

KeHE specifics: fees and timing

Two clocks: a written UDR response within 48 hours of the notification (§6.6), and a repayment request in K-Solve within 180 days of the deduction (§4.4). The 180 days don't extend the 48 hours. KeHE deducts shortages at the PO price per product (§6.7). Overage is the reverse: if you shipped more than the PO, KeHE asks for disposition and pays at the Fee Schedule discount if it keeps the cases (§6.8), so invoice it rather than write it off.

Backup you'll need to win it

• Proof of delivery signed by a KeHE employee at the DC, with the case count (the document KeHE's policy names, §4.4)
• Your written UDR response and its date, if KeHE issued a UDR
• Bill of lading signed by KeHE's driver, if KeHE picked up (Collect)
• Packing list and the PO number

You dispute KeHE deductions in K-Solve, inside the KeHE CONNECT supplier portal. See the step-by-step dispute guide and check the KeHE dispute window before you file — miss it and even a valid claim is lost.

See how many shortage charges are in your actual file: upload a KeHE remittance to the free KeHE KSolve deduction analyzer and it will flag the disputable lines and estimate what's recoverable.