Walmart Supplier Quality Excellence Program (SQEP):
Walmart’s SQEP program began February 1, 2021. SQEP is Walmart’s corporate program is designed to drive a zero-based mindset regarding quality defects within the supply chain. SQEP includes PO accuracy, barcode and labeling, packaging, load, and pallet quality.
PO Accuracy Fines:
Suppliers are now responsible for PO Accuracy defects listed within the SQEP portal app in Retail Link, resulting in a charge through via reimbursement process. It is important to note that these fines are incremental to the OTIF fines that exist today.
•$200 (For each PO defect) and $1 per impacted case.
•Example: If you have an overage on a Walmart PO with 100 cases impacted, the fine would be $300 = $200 for the PO and $100 for 100 cases handled.
(Source: Walmart SQEP Guide Posted in Retail Link)
Key Dates & Fines:
•The fine start date of February 1st only applies to the PO Accuracy phase of SQEP.
•Walmart’s fines for PO Accuracy will be invoiced on March 31st, 2021.
•Advanced Ship Notifications (ASN’s) will be required as of 02/01. Fines for the ASN phase of SQEP will not begin until 05/01. (There is no information on the fine structure for ASN’s at this time)
Top 3 things your organization can do now to prevent SQEP fines:
1. Complete ASN setup process with your EDI provider. This process can take several weeks.
•Complete ASN mapping requirements internally.
•Complete ASN test documents.
2. Review all item information in Retail Link:
• Areas of focus- Pack Size, UPC’s, Dimensions, and TI/HI.
• Ensure that you take the time to review/update information in item 360.
3. Ensure Purchase Order Accuracy:
•Review PO details before picking/shipping Walmart orders.
•Avoid shipping any PO’s/PO lines if they have been cancelled in NOVA.
•Ensure that the product being shipped meets dating/shelf-life requirements listed on file.
•Develop internal processes to help prevent over shipping, etc.
•Ensure On-Time delivery to avoid PO’s being canceled due to late delivery.
Third Party Logistics- ASN Assistance:
If you are working with a 3PL provider (Ex. RJW, Hub Group) to fulfill your Walmart orders, make sure you ask your account manager about Walmart’s ASN requirements. Most 3PL providers are offering to manage this portion of the program for supplier partners either for free, or at a very small cost relative to the potential fines for non-compliance.
If you need strategic partnership, advice and support to approach the world’s largest retailer, feel free to reach out for a touch-base with someone at New Nexus Group.
“Supplier Quality Excellence Program (SQEP).” Retail Link- Supplier Academy, Walmart, 18th Feb. 2021.