Walmart’s New SQEP Program: 3 Things for Suppliers to Know

Brief Summary

The first rollout of the Walmart SQEP program started February 1, 2021. As of this date, suppliers are now responsible for Purchase Order (PO) Accuracy defects incurred and identified on the SQEP portal, resulting in a charge through a reimbursement process. At Harvest Group, we’ve been working to prepare our clients for these changes. Through this process, we’ve received a few questions that we want to share to help guide other suppliers.  

 What is the fine structure associated with the new requirements?  

  • The current cost structure is $200 per PO per defect and $1 per unit handled.  
  • Example: If you have an overage for a PO with 30 cases impacted the fine would be $230 = $200 for the PO then $30 for 30 cases handled. 

Anything else to know about the new requirements beyond fines? 

  • The 02/01 fine start date applies only to the PO Accuracy phase.
  • The PO Accuracy results can be found in the SQEP Dashboard in Retail Link. 
  • The first round of fines for PO Accuracy will be invoiced 03/31.
  • The separate initiative, Advanced Ship Notifications (ASN), will be required as of 02/01 but fines for that program would not begin until 05/01 when the compliance program is active.
  • The ASN results can be found in the Advanced Ship Notice Dashboard.
  • No current information on fine structure for ASN.

Top 3 things you could do to prepare now and avoid the fines:

1. Double-check all item information in Retail Link: Areas of most concern include UPCs at all levels, pack size, dimensions, and TI/HI.

2. Ship exactly to the Purchase Order:

  • Review PO after any changes before picking and shipping.
  • Avoid shipping a line after it is canceled.
  • Ensure product being ship meets dating/shelf-life requirements listed on file.
  • Create processes internally to avoid over shipping, etc.
  • Ensure On-Time delivery to avoid PO’s being canceled due to late delivery.

3. Start setting up ASN now, if not done already. The set-up process takes a couple weeks normally to set-up with your EDI provider, fulfill mapping requirements, and complete test documents. 

If you’re finding the new Walmart SQEP program to be difficult to navigate or if you have any questions, reach out to us at hello@harvestgroup.com or fill out our contact form to start a conversation!

Related Reading: Walmart’s New OTIF Requirements: How Suppliers Can Adapt