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Adapting to Walmart's OTIF supplier quality excellence program

Walmart rolled out its SQEP program in four phases, with the full launch on February 1, 2021, to hold suppliers accountable for their item file accuracy. Like OTIF, it enforces with chargebacks. Here is what the program covers and how suppliers prepare.

Enforced with chargebacks
Written by EDI specialists
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The program

What SQEP holds suppliers accountable for

The SQEP program holds suppliers accountable to their item file metrics, correct use of case labels and carton markings, and overall load quality. A common failure: a supplier makes a small change to a product but forgets to update the item file, causing errors in what is ordered versus what is received.

SQEP came with a dashboard rollout for accuracy tracking, and, like OTIF, it uses chargebacks to keep suppliers above Walmart's required accuracy threshold.

Phase one

Accuracy and advance ship notification (ASN)

Phase two

Barcode and labeling

Phase three

Load quality, label quality and packaging

Phase four

Scheduling and transportation

Preparing

What suppliers can do to prepare

  • Review the SQEP standards in Retail Link Academy, under Ordering & Replenishment, KPIs and Metrics, Supplier Quality Excellence Program (SQEP).

  • Develop and implement an internal accuracy action plan for all outgoing Walmart U.S. Stores and eCommerce deliveries, covering QA, accountability, and item file accuracy.

  • Review the ASN standards in Retail Link Academy, under Getting Started, EDI, Advanced Ship Notice (ASN).

  • Pharmacy, Direct Store Delivery (DSD) and Direct Store via Distribution Center (DSDC) follow the separately communicated program.

The ASN and the labels it must match are covered in depth on the 856 page and Walmart's pallet requirements.

Where we come in

OTIF performance is an EDI discipline

Effective Data has always been committed to high OTIF performance because of what it does for our customers: high in-stocks and increased sales at the shelf, through to line extensions with the retailer. We help suppliers achieve 98%+ OTIF.

Taking SQEP or OTIF chargebacks, or preparing to sell to Walmart?

Describe where you are and a named EDI specialist will tell you what it takes to get above the threshold and stay there.

Or call 847.969.9300

Answered by a named EDI specialist on the same business day. If we are not the right answer we will say so on the first call.