Walmart SQEP

Coldstream Logistics is prepared to help you navigate Walmart’s challenging requirements. As a matter of fact, our consolidation programs have been fully SQEP compliant since the beginning of 2021. We handle everything from ASN’s to labeling to assure you avoid costly fines.

What is SQEP? 

SQEP is Walmart's Supplier Quality Excellence Program. It was designed to drive out unnecessary handling costs coming into the supply chain. The program ensures packaging, load quality, and purchase order (PO) information accuracy. This helps the product arrive, get processed, loaded on a trailer, and shipped to stores in a timely manner. 

What is Walmart measuring and penalizing? 

To launch the new SQEP initiative, Walmart is rolling out accountability standards in phases. While specifics may change over time (as with the On-Time In-Full Initiative), three rollout phases have been announced: 

Phase 1: PO Accuracy and ASN Accountability 

Suppliers that are not doing ASNs (Advance Ship Notices) currently should begin having conversations with their EDI providers. This is to ensure they are ASN compliant. 

Phase 2: Labeling and Bar Code Accuracy 

This phase covers the accuracy of shipping labels. Suppliers also need to verify that case labels are scannable and the information is correct. 

Phase 3: Scheduling and Transportation 

In addition to basics like boxes, pallets, and load shifts, there may be shipment accountability during this phase. 

How are suppliers fined for non-compliance? 

As of 2021, the penalty is 200 dollars per PO and one dollar per case on the PO that’s impacted. Fines can add up quickly when you consider that some POs can have hundreds of cases on them. Now’s the time to work with your item file and confirm the accuracy of all the data being shipped through Walmart. 

Need help reducing or eliminating SQEP penalties?

Reach out to discuss how Coldstream Logistics can help you navigate these requirements so you can spend your time doing what you do best.

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