How Suppliers Should Investigate 'No Merchandise Received' Claims: A Step-by-Step Workflow

No Merchandise Received is a claim that the retailer has no record of receiving merchandise associated with an invoice. Suppliers who get this notice must act quickly and methodically to avoid delayed payment and chargebacks.

A supplier investigation should be organized like an incident response: gather evidence, sequence events, validate carrier actions, and communicate with the retailer through documented channels. Time is critical—many retailers have strict windows for contesting a 'No Merchandise Received' claim. A robust supplier response reduces downtime and often prevents automatic chargebacks.

Immediate Steps To Open An Investigation

• Acknowledge Receipt: Respond to the retailer within their stated SLA to confirm you received the claim and you will investigate.
• Assemble Ship Documents: Pull the bill of lading, ASN/EDI 856, packing list, carrier manifest, and the original PO that the invoice references.
• Request Carrier POD: Ask the carrier for signed POD, timestamp, and GPS or telematics logs where available.
• Check Shipping Records: Verify the shipment left your dock, including any carrier pickup confirmation and driver sign-off.

Evidence That Resolves Most Claims

• Proof Of Delivery: Carrier-signed POD or electronic signature with timestamp and location.
• Advance Ship Notice / ASN: EDI 856 or portal ASN showing pallet and carton-level details.
• WMS Ship Logs: Export from your WMS showing pallet/carton IDs, serial numbers, and shipping timestamps.
• Driver Logs & Telematics: GPS traces and timestamped route data proving arrival at the retailer's dock.
• Photos/Video: Time-stamped imagery of pallet handover or dock receipt where available.

How To Sequence The Investigation

Start at the origin (supplier dock) and move forward. Confirm the dispatch event and document chain of custody. Next, contact the carrier to validate pickup and delivery attempts. Concurrently, consult the retailer’s inbound ASN and receiving schedule to see whether the shipment matched the expected appointment. If evidence shows delivery, prepare a single package for the retailer’s dispute portal containing correlated documents: ASN, BOL, POD, photos, and a one-page chronology of events.

When Evidence Is Inconclusive

If carrier POD is missing or contradictory, escalate to the carrier immediately and file a delivery exception report. If the retailer indicates the goods were never scanned but you have a POD, suggest a physical search of reserve areas and an inventory recount. If the retailer claims non-receipt and no proof exists from the carrier, suppliers should consider whether a shipping error occurred; deciding whether to credit, resend, or litigate depends on contract terms and the value involved.

Communication And Documentation Best Practices

• Single Thread: Use the retailer’s dispute portal or a single email distribution list to avoid lost or duplicated messages.
• Chronology Document: Provide a clear timeline with document references—this speeds internal retailer review.
• Escalation Contacts: Maintain a supplier-side escalation list and request the retailer's escalation path for stuck disputes.
• Record Retention: Keep all shipping, carrier, and correspondence records for the contractual retention period (commonly 1–3 years).

When To Accept Liability Or Request Arbitration

Decide based on the weight of evidence and contractual terms. If carrier logs confirm delivery to the retailer but the retailer cannot find goods, the retailer typically bears the inventory discrepancy risk unless contract clauses transfer that risk earlier. If carrier cannot prove delivery or if supplier documentation shows a shipment never left the supplier, the supplier may accept return or replacement. Contracts should define chargeback thresholds, evidence requirements, and arbitration pathways to avoid ad-hoc disputes.

In short, the No Merchandise Received claim is best handled with a disciplined evidence-driven workflow: acknowledge, collect ASN/BOL/POD, sequence events, and communicate via documented channels. Rapid, organized responses preserve payment and vendor-retailer relationships.