February 1, 2021 – that was the deadline for all Walmart suppliers to be compliant with Phase One of the new Supplier Quality Excellence Program (SQEP). That means right now, Walmart holds its suppliers accountable for PO Accuracy and Advanced Shipping Notice (ASN) requirements. This is the first of a four-phase initiative by Walmart to improve accountability standards for its suppliers. Before we get to the solutions that can help you become compliant with phase one now and prepare for the others, let’s first go over what exactly is required of suppliers right now.

Phase One of SQEP Explained

Under Phase One of the new SQEP program, suppliers are now responsible for:  

  • PO Line Coverage: All lines from submitted POs are represented on an ASN. Covered under OTIF program 

  •  Item Accuracy: Items on the ASN match the items on the physical shipment. SQEP Expectation – 100% 

  • Quantity Accuracy: Quantity submitted on the ASN matches the physical shipment. SQEP Expectation – 100% 

The Penalty

What happens if you continue to wait? You’ll face a costly penalty that is $200 per PO plus $1 per case on that PO impacted. 

The Next Phases 

As we stated previously, this is only the first phase of Walmart’s Supplier Quality Excellence Program. The next phases of the initiative include:

Phase Two: Barcode and Labeling 

The rollout of Phase 2 of the initiative is expected to happen during Q3 of 2021. This phase will cover the accuracy of shipping labels and will also require suppliers to verify that case labels or scannable and accurate.

Phase Three: Load Quality, Label Quality, Packaging

No date or details have been decided yet for this phase of the initiative.

Phase Four: Scheduling & Transportation

No specific date has been decided yet for the rollout of this final phase, but this will require basics like boxes, pallets, and load shifts and could include additional accountability for Walmart.com shipments.

Solutions for ASN Compliance

If you missed the deadline for Phase One, iTradeNetwork can help you achieve compliance now, whether you are already part of our network or not. As the global provider of supply chain management solutions for the food and beverage industry, iTradeNetwork has implemented a Walmart-compliant Advanced Shipping Notification on its platform so you can meet the new requirements easily.

Proven Results

This is not the first time iTradeNetwork has moved quickly to help shippers meet new standards. The company implemented changes to meet Walmart's previous round of SQEP updates in 2017 and 2018. 

As a result of those efforts, participating suppliers: increased their Walmart trading volumes on average by 55% within 12 months – with some suppliers increasing Walmart trading volume by as much as 300% on the iTrade’s platform.

Your Next Steps

If you need to get compliant now with the new Advanced Shipping Notice regulations in phase one, you can become compliant immediately through iTradeNetwork’s platform. If you need help planning for compliance for future phases, iTrade can also help. Contact us today to schedule a 15-minute consultation and learn more.