BENTONVILLE, AR - Walmart is continuing to keep the industry on its toes, specifically the supply-side. Recently, Walmart told its more than 100,000 suppliers about its new Supplier Quality Excellence Program (SQEP) which will measure suppliers on four areas as part of an effort to improve supply chain efficiency.
According to a memo obtained by Talk Business & Politics, Scott McCall, Chief Merchandising Officer for Walmart U.S., and Greg Smith, Executive Vice President of Supply Chain Logistics and Transportation at Walmart, outlined how the new program will work. Through SQEP, suppliers will be required to meet Walmart’s supply chain standards. Suppliers will be charged when products shipped through the supply chain do not meet the standards to offset any costs generated because of non-compliance, according to the memo. How will these new standards impact the diligent efforts of many fresh produce companies already elevating the supply chain, especially in critical times like these? We are waiting anxiously to find out.
“Our goal is to improve the quality of deliveries in our supply chain by receiving all of the product we ordered at the time suppliers agreed to deliver it. No charges for SQEP will be implemented until after February 1,” Walmart said as with the new On-Time In-Full (OTIF) policy.
The SQEP will be implemented in the following four phases.
- Phase 1: Accuracy and Advanced Ship Notice (ASN) – migration to Item 360
- Phase 2: Barcode and Labeling
- Phase 3: Load Quality, Label Quality, Packaging
- Phase 4: Scheduling & Transportation
“As we continue to keep the customer at the center of everything we do, we must improve product availability to help ensure that our customer can purchase the products they want, when they want, in-store or online. To deliver on this goal, orders need to be fulfilled accurately, on time, and in full. Over the last couple of years, improvements to the On Time and In Full (OTIF) program have driven increased visibility and accountability for Walmart and our Supplier partners,” the memo uploaded to Walmart’s supplier portal said, according to the news source.
As Walmart continues to marry its online business with its in-store business, more consistency is needed to ensure shelves are fully stocked and the retail giant has a full and accurate accounting of every product it has purchased.
How will these new implementations change how the supply-side in our industry conducts business moving forward? AndNowUKnow will continue to report as developments unfold.
