How you can adapt to Walmart's new OTIF supplier quality excellence program
Walmart will be implementing the SQEP program in four phases, with a full program launch February 1, 2021 to essentially hold suppliers accountable for their item file accuracy.
- Phase One: Accuracy & advanced ship notification (ASN)
- Phase Two: Barcode & labeling
- Phase Three: Load quality, label quality & packaging
- Phase Four: Scheduling & transportation
The SQEP program is holding suppliers accountable to their Item File metrics, correct use of case labels and carton markings, and overall load quality. Occasionally, suppliers will make small changes to their products but forget to update the Item File, causing errors in what is ordered vs received. SQEP comes with a dashboard rollout for accuracy tracking. Like OTIF, this program uses chargebacks to prevent falling below Walmart’s required threshold of accuracy.
This is a big undertaking for suppliers with several action items, but there are ways suppliers can achieve success with Walmart’s new OTIF requirements.
What Can Suppliers do to Prepare?
As the world of supply chain and retail is adapting to these changes, here are a few ways that suppliers can brace themselves and push their business forward.
- Review the SQEP Standards in Retail Link Academy > 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. Your accuracy action plan should consider:
- Item File Accuracy
- Review the ASN Standards in Retail Link Academy > Getting Started > EDI > Advanced Ship Notice (ASN).
- Pharmacy, Direct Store Delivery (DSD) and Direct Store via Distribution Center (DSDC) will follow the current communicated program.
Here to Help
Effective Data has always been committed to high OTIF performance because we know the positive impact for our customers, from high in-stocks and increased sales at the shelf, to line extensions with the retailer. We can help you achieve 98%+ OTIF. Contact us to learn more!