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Shippers must meet delivery demands or pay penalty to retailer
Wal-Mart Stores will charge suppliers penalties for late deliveries starting Feb. 1, according to a letter to suppliers.
The requirement, the latest in a series of initiatives the retail giant is launching across its supply chain to improve inventory control and make inbound transportation more efficient, was announced in letter Wal-Mart sent to suppliers last Oct. 15.
Many motor carriers and third-party logistics providers are working with shippers to ensure they meet Wal-Mart’s requirements and avoid noncompliance fines. Some companies have Web pages dedicated to the program.
According to the letter to suppliers, the retailer will apply a “reimbursement charge” of 3 percent of the cost of goods sold to each case not delivered and entered into its database by its “Must Arrive By Date” delivery window.
Under its Supply Chain Reliability Program, Wal-Mart will require orders to be delivered within a four-day window, comprised of the “Must Arrive By Date” or MABD on the purchase order and the three preceding days.
The program poses many challenges for suppliers as they determine the best way to ship freight to Wal-Mart, Steve Banker, an analyst with ARC Advisory Group, said in a blog item on the mandate.
Contact William B. Cassidy at wcassidy@joc.com.
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Anyone working with Wal-Mart knows what they're getting into. Let's not listen to their complaints when their bottom line fails. Buyer and Seller beware.
- By bwatt1634 on 1/29/10
Why does anyone shop at Wal-Mart. They have virtually single handedly pushed suppliers into overseas production of products. Further, if you are a carrier, you know that they are a horrible customer. They have pushed the local hardware stores, pharmacies,etc. out of business and now dominate local economies in small towns across the country. I am all about a free market system and am in no way saying that the goverment needs to regulate Wal-Mart's growth, but we as consumers can do just that. If we do not, they will continue to eat at the nation's foundation. Wake up!
- By climbtosafety on 1/29/10
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Q: Why does anyone shop at Walmart?
A: Because not everyone can afford to shop at Whole Foods or Kroger...
People are so desperate to save every penny they can that they subject themselves to abuse and shop at Walmart? I mean, more than the fact that Walmart is destroying America small business... just going there... from the parking lot... to the overly crowded store... to the 3 checkout lines open for hundreds of customers... to the rude, almost intimidating attitude of the employees.... there's more than just one reason to avoid Walmart...
and still... people continue to shop. you can't stop it.