Discrepancies & Damages

Purpose

This guide explains how eFulfillment Service (EFS) manages inventory discrepancies and damaged products, how to monitor your “hurt” bin, and what steps to take if issues occur during receiving or fulfillment.

1. Identifying Discrepancies

Discrepancies occur when the quantity of items received or stored does not match your shipment documents or expectations.

EFS verifies inventory at multiple stages:

• Upon receipt of your shipment at the warehouse
• During order processing
• When returns or damages are processed

If a variance is found, EFS reviews receiving reports and warehouse records to confirm accuracy before adjusting counts in your Fulfillment Control Panel (FCP).

2. How You’ll Be Notified

When EFS identifies a discrepancy or damaged product, you receive an Inventory Damages/Discrepancies by email from the Inventory Control team.

This report includes:

• SKU
• Quantity affected
• Type of issue (missing, overage, or damaged)
• Date reported

Notifications are sent to the contact listed in your Manage Email settings under Client Info. Ensure your contact information is up to date to avoid missing critical updates.

2.5 SMS (Text) Message Notifications

You can also receive urgent notifications via SMS text message. To enable:

1. Go to Client Info → SMS Messages
2. Click “Add New SMS Number”
3. Enter your mobile number (no dashes; international numbers need + prefix)
• Example: 2315555555 (U.S.)
• Example: +725555555 (Countries outside the U.S.)
4. Select your country
5. Click “Create SMS Number”

Message & data rates may apply. You can opt out anytime by selecting “delete” under Options.

3. The Hurt Bin Process

EFS uses designated “hurt” bins to store damaged or defective items, including:

• Items damaged during inbound shipment inspection
• Products returned by customers that cannot be restocked due to:
• Opened packaging
• Missing components
• Physical damage
• Signs of use
• Units identified as defective during handling
• Products with damaged barcodes that cannot be scanned
• Items with mold or other contamination

Key points:

• Hurt bins are cleared on the 30th of every month
• Clients have 30 days from the date an item is placed in the hurt bin to request a return or disposal
• If no action is taken within 30 days, items are automatically discarded
• EFS will contact you only if your hurt bin becomes full before the 30-day deadline

4. How to View Hurt Bin Inventory

You can monitor your hurt inventory in your FCP:

1. Go to Reports → Inventory Spreadsheet
2. Select “Show only SKUs with hurt inventory greater than zero”

Checking your dashboard regularly helps avoid accidental disposal of damaged products.

4.5 Proactive Hurt Bin Management Tips

To avoid automatic disposal of valuable items:

1. Check your hurt inventory weekly, not just when you receive notifications
2. Set a calendar reminder for the 20th of each month to review your hurt bin
3. Run the Inventory Spreadsheet Report filtered for hurt inventory
4. When you receive a damages/discrepancies report, immediately check the hurt bin
5. Submit disposal or return requests at least 5 days before month-end to ensure processing

Remember: It’s your responsibility to monitor and manage hurt bin inventory. EFS only contacts you if the bin becomes full before the 30-day deadline.

5. Handling Damaged Items

You must inform EFS how to handle items in your hurt bin within 30 days.

Options include:

• Return to you: EFS will ship the damaged items to your chosen address
• Discard: EFS disposes of the items responsibly

Submit your request via the Zendesk Ticket System, including:

• The SKU and quantity to remove
• Your preferred resolution (return or discard)

If you do not respond within the 30-day timeframe, EFS assumes disposal authorization.

6. Reporting a Damage or Discrepancy

If you discover a missing or damaged item not previously reported:

1. Log in to your Fulfillment Control Panel
2. Go to Client Info → Support
3. Submit a Support Ticket titled “Inventory Discrepancy”
4. Include the SKU, order number, and details of the issue

EFS will investigate and respond with findings or resolution steps.

7. Monthly Hurt Bin Reports

Starting July 2022, EFS automatically emails a monthly hurt bin summary to all clients on the 15th of each month. These emails are sent to the address listed for Return Notifications.

Important: You are responsible for monitoring your hurt bin inventory between monthly reports. Do not wait for the monthly email to check your hurt inventory status.

You can review or update this address under Client Info → Manage Email.

8. Common Causes of Discrepancies

• Missing packing lists or incorrect ASN details
• Unlabeled or duplicate SKUs
• Damaged items during shipping to EFS
• Manufacturer count errors or carton overages

To minimize discrepancies:

• Always include a packing list with each inbound shipment
• Ensure SKUs match your digital inventory records
• Use protective packaging and clear labeling on cartons

Quality Sorts

If your shipment contains damaged items or mixed SKUs in the same box, it requires a quality sort before receiving into stock. You will be notified before this occurs.

Quality sort billing:

• You’ll receive notification before processing begins
• This is separate from standard receiving fees

8.5 Related Non-Compliance Fees

To minimize discrepancies and avoid fees, ensure you:

• Submit an ASN before inventory arrives
• Include a packing list with each shipment
• Add new SKUs to your FCP before shipping
• Keep boxes under 50 lbs per OSHA requirements
• Address shipments properly to your company name c/o EFS

Failure to follow these procedures may result in a $100.00 non-compliance fee per occurrence.

For complete details on receiving requirements and non-compliance fees, refer to the Receiving Guide.

9. Review and Follow-Up

If discrepancies or damages are confirmed, EFS:

• Updates your inventory quantities in the FCP
• Notes the adjustment date and reason
• Includes reference in your Inventory Report

Clients are encouraged to check this report monthly for transparency and recordkeeping.

10. Contact Information

For hurt bin or discrepancy questions:

Primary Method: Submit a ticket via your Fulfillment Control Panel

• Go to Client Info → Support
• Or use the floating ‘SUPPORT’ tab on most FCP pages

Alternative Methods:

• Visit: http://support.efulfillmentservice.com
• Email: [email protected]

Note: All methods create the same ticket in our system and are routed to the appropriate department. For fastest response, use the FCP support system.

Next Steps

Continue to the next guide: Return Initiation. That guide explains how to start product returns, generate return labels, and track return processing in your FCP.