SQEP

Supplier Quality Excellence Program

In an effort to establish end-to-end quality within Walmart’s U.S. distribution network, suppliers will be required to meet certain new standards under the SQEP.

Fully Compliant by February 1, 2021

This program is rolling out in phases, offering opportunities and tools to help suppliers become comfortable with the new requirements. Walmart is currently in the Readiness Phase, during which they are announcing specific details on the program and will not assess any fines for non-compliance until February 1, 2021.

Phase One

Accuracy & advanced ship notification (ASN)

Phase Two

Barcode
& labeling

Phase Three

Load quality, label
quality & packaging

Phase Four

Scheduling
& transportation

RJW is here to serve as your resource as you adapt to these new requirements. We have designed many services and platforms that not only streamline your supply chain, but also integrate it with Walmart’s systems. More details on specific Walmart requirements can be found on Retail Link.

PHASE ONE

Accuracy & Advanced Ship Notification (ASN)

You’ll be required to comply with each of the three sub-phases below.

 

PHASE 1A: EFFECTIVE SEPTEMBER 15, 2020

Item Data Accuracy – Migration To Item 360

Suppliers must utilize Item 360 for item setup and maintenance (including changes made to warehouse and case pack sizes as well as checks for data accuracy) across in-store and online. In Item 360 you’ll be able to edit many attributes in bulk, without entering the information into multiple systems. You can also track submissions and resolve any issues that arise. Buyers have the ability to approve or reject your requests directly within Item 360.

You will still utilize other legacy Walmart systems for certain functionality until further notice, such as Publication Detail Report. Imports and Pharmacy may continue to use Online Item File until further notice.

RJW can help with efficient product imaging for your online item file and e-commerce listings to reduce returns and comply with SQEP requirements.


 PHASE 1B: EFFECTIVE NOVEMBER 2, 2020

PO Accuracy

The SQEP Dashboard is available, which allows suppliers to monitor PO inaccuracies, supply chain errors, and more. As of February 1, 2021, items received at the DC must match what is on the PO with 100% accuracy, and items shipped must match what is in the item file (Item 360).

Review your PO Accuracy via the SQEP dashboard portal with visibility to detailed drill down of each identified opportunity.

  • Suppliers will also receive a performance score and defects-per-million metric.
  • The Inbound Quality Portal, utilized for Walmart U.S. Stores within the vendor correction of error program, will merge into the new SQEP Portal.

Looking Ahead…
Use this time with the new dashboard, prior to the February 2021 compliance deadline, to familiarize yourself and prepare. 

  • 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:

QUALITY ASSURANCE  Mitigate errors throughout your supply chain. Avoid item substitutions that contribute to SKU inaccuracies.
We’ll develop processes alongside your team to ensure your SKUs at RJW match your Walmart POs.

ACCOUNTABILITY  Ensure practices are in place to prevent inaccuracies while picking orders. Ship to the purchase order; no more, no less.
RJW ships your orders with nearly 100% pick accuracy as long as you maintain adequate inventory in our facilities.

ITEM FILE ACCURACY  Update Item File when changes are made to pack (warehouse and case pack) sizes. Periodically review Item File for accuracy. Make sure what is in Item File matches what is being shipped.
Coordinate with RJW on any changes you make to your Item File.

RJW achieves nearly 100% pick accuracy which will help you avoid shorts, overages, and substitutions.


 PHASE 1C: EFFECTIVE FEBRUARY 1, 2021

Advanced Ship Notice (ASN)

Advanced Ship Notice (ASN) will be required for all Domestic Purchase Orders (PO) shipped to a Walmart U.S. Distribution and/or Fulfillment Center.

RJW has developed a comprehensive ASN program with Walmart and is able to handle this for you to ensure a more seamless integration and supply chain.

You my also choose to handle the ASN yourself manually with Walmart, but remember it is a requirement of the SQEP beginning February 1, 2021 that will incur fines for non-compliance.

Looking Ahead…

  • 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.

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PHASE TWO

Barcode & Labeling

EFFECTIVE DATE TBD

Full Details Coming Soon

Walmart has not released detailed information regarding Phase 2.

However, RJW has a full suite of value-added services to help you adapt, including in-house barcoding and labeling capabilities that help you cut overhead costs, reduce turnaround times, and comply with Walmart’s new SQEP.

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PHASE THREE

Load Quality, Label Quality & Packaging

EFFECTIVE DATE TBD

Full Details Coming Soon

Walmart has not released detailed information regarding Phase 3.

However, RJW has a full suite of value-added services to help you adapt, including in-house labeling and packaging services that eliminate the need to outsource to vendors, reduce unnecessary supply chain waste, and optimize your resources.

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PHASE FOUR

Scheduling & Transportation

EFFECTIVE DATE TBD

Full Details Coming Soon

Walmart has not released detailed information regarding Phase 4.

However, as an asset-owned 3PL and consolidation provider, RJW schedules and manages all outbound transportation to Walmart to assist you (with an average 98%+ OTIF score). You get full supply chain visibility, transportation flexibility, and timely trucking capacity to ensure your goods arrive on time and in good condition.

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