BENTONVILLE, Ark. — This week Walmart told its more than 100,000 suppliers about its new Supplier Quality Excellence Program (SQEP) which will measure suppliers on four areas as part of an effort to improve supply chain efficiency.
A memo from Scott McCall, chief merchandising officer for Walmart U.S., and Greg Smith, executive vice president of supply chain logistics and transportation at Walmart, outlined how the new program will work. Through SQEP, suppliers will be required to meet Walmart supply chain standards. Suppliers will be charged when product shipped through the supply chain does not meet the standards to offset any costs generated because of non-compliance, according to the memo.
Walmart said as with the new On-Time In-Full (OTIF) policy, “Our goal is to improve the quality of deliveries in our supply chain by receiving all of the product we ordered at the time suppliers agreed to deliver it. No charges for SQEP will be implemented until after Feb. 1.”
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