Seasonal Apparel Vendor Overturns $77,300 in CVS Health EDI & ASN Penalties

Executive Summary

• Client Profile: Consumer accessories and seasonal apparel supplier ($19M annual turnover).
• Retailer Involved: CVS Health.
• Deduction Categories: Code VNC-ASN (Vendor Non-Compliance Late EDI 856) & Code 26 (Pricing discrepancy).
• Dispute Amount: $82,300 across 3 quarters.
• Net Recovered: $77,300 (93.9% recovery rate).
• Resolution Timeline: 49 days via CVS Vendor Portal.

The Issue: Third-Party EDI Gateway Lag

CVS Health strictly enforces that EDI 856 Advance Ship Notices (ASNs) must be received and processed before the carrier physically arrives at the distribution center.

Due to a temporary technical backlog at the supplier’s EDI Value-Added Network (VAN), ASN transmissions were timestamped 15 to 30 minutes after trucks arrived at the gate, triggering automated $250-per-PO non-compliance fees.

Recovery Methodology

1. VAN Transmission Log Extraction: DhaReclaim collaborated with the supplier’s EDI provider to pull millisecond server transmission logs, proving that the vendor initiated EDI dispatch well prior to carrier transit.
2. Carrier Gate Log Comparison: Proved that trailers were delayed at CVS entry gates due to facility congestion, artificially altering the recorded arrival window.
3. Formal Portal Submissions: Filed claims through the CVS Vendor Portal with certified technical transmission certificates.

CVS Health compliance auditing managers agreed with the technical evidence, reversing $77,300 in automated chargebacks.