KeHE compliance guide: routing, labeling & ASN

A KeHE compliance chargeback is a fee KeHE deducts when a shipment breaks one of its vendor requirements — routing, carton labeling, EDI/ASN accuracy, fill rate, or on-time delivery. Unlike a shortage or pricing deduction, these are almost entirely preventable: they come from how you ship, not what you sell. The rules live in KeHE's Inbound Routing Guide and vendor policies, which are private — the figures below come from documented third-party sources, so confirm the current numbers against your own agreement.

What are KeHE's main compliance requirements?

KeHE's program spans five areas. Each has its own requirement and its own fee when you miss it:

How do KeHE routing and appointment rules work?

KeHE assigns the destination DC, the carrier or routing method, and a delivery appointment for each PO. Shipping to the wrong DC, missing the appointment window, or arriving unbooked can trigger non-compliance fees — plus lumping and sort-and-segregate charges when KeHE's team has to handle product your shipment should have presented correctly. Follow the routing instruction on each PO and keep every appointment.

What are KeHE's case-label and barcode requirements?

Every case needs a compliant label with the required GS1-128 (and ITF-14 where specified) barcodes, placed where KeHE's receivers scan, with data that matches your ASN. An unreadable barcode, a wrong placement, or label data that doesn't match what physically arrives is a per-carton non-compliance fee. Scan-verify labels on the line before the truck leaves — this is the single cheapest compliance fix.

What EDI and ASN documents does KeHE require?

KeHE runs on EDI: it sends the purchase order (850), you return an invoice (810), and you transmit an advance ship notice (856/ASN) before the shipment arrives. The ASN has to match the physical shipment — quantities, cases, and labels. A missing, late, or inaccurate ASN is its own chargeback, and it's often the root cause behind a “shortage” that was really an ASN-mismatch. Automating 856 generation off the actual pick is what keeps this clean.

What are KeHE's fill-rate and on-time thresholds?

KeHE's compliance program applies a fee of roughly 3% on the value of product shorted below a 98% fill-rate threshold, and issues quarterly fines when on-time performance falls below about 92%. These are the two thresholds most brands leak on. See the fill-rate explainer for how the fee is calculated and when an amended PO makes it disputable.

How to prevent KeHE compliance chargebacks

1. Pull the routing instruction on every KeHE PO and ship to the assigned DC on an appointment.
2. Scan-verify GS1-128 / ITF-14 case labels before the truck leaves — no unreadable or mismatched barcodes.
3. Transmit an accurate 856 ASN that matches the physical shipment, every time.
4. Protect fill rate: ship complete against the current PO, and capture amendments so a cut order isn't scored as your miss.
5. Reconcile compliance fees on each remittance — a fee for a violation that didn't happen is disputable in K-Solve within 180 days.

Figures reflect KeHE's documented compliance program via third-party sources; KeHE's routing guide and fee schedule are private and change over time. Confirm current thresholds and fees against your KeHE vendor agreement.