ecommerce Supply Chain Reliability Manual ecommerce Supply Chain Reliability Team Walmart ecommerce Version 2.4 Effective: May 1, 2015
Revision Control Log Revision # Date of Change Description Page Changed V1.0 01/10/2014 Initial version of vendor compliance guide V2.0 05/01/2015 Changes to chargeback program, Introduction to Vendor All Correction of Errors (VCOE) V2.1 05/01/2015 Updated: 1) OTF performance charge 2) Chargeback dispute deadline 3) Appendix E Pgs. 6,7,16,20, 26 V2.2 07/18/2016 Updated 1) Removed all verbiage pertaining to apparel 2) Included PO type 20 in all chargebacks 3) Added in additional ASN (EDI 856) requirements 4) Added Overages chargeback 5) Added Lead time Routing violation chargeback 6) Added Routing chargebacks RO5-RO8 7) Updated and added Bill of Lading Chargebacks BL1- BL7 8) Updated Chargeback Dispute Process 9) Added in Vendor Improvement Program 10) Updated Contact List 11) Updated Appendix A-E V2.3 12/1/2016 Updated 1) Updated helpful tips section for Type 20 2) Updated helpful tips for routing and collect shipping expectations for type 20 3) Updated PO revision expectations for type 20 POs 4) Updated BL7 Chargeback 5) Updated Contact List 6) Updated escr guide location on RetailLink V2.4 1/25/2017 Updated 1) Updated type 20 On Time definition to include Ship On Date 2) Updated type 20 PO routing expectations 3) Updated GMT TSP Link 4) Updated PO Revision request process 5) Removed LTR chargeback 6) Updated Performance Charge Calculation for RO1 7) Included Type 20 Weight Audit Chargeback 8) Updated Performance Charge Calculations for Item Setup Chargebacks 9) Updated Performance Charge Calculations for Shipment Error Chargebacks 10) Updated escr Guide Location path in RetailLink Pgs. 5-7, 9,10,15-26 Pgs. 7-9,15,20,22 Pgs. 6-9,11,12,17-18,26 Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 2 of 33
11) Updated all PO Ship Date verbiage to Do Not Ship Before (DNSB) Date Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 3 of 33
Table of Contents 1. Overview... 5 1.1 General Expectations... 5 1.2 Key Performance Indicator... 6 1.3 ASN Requirements... 6 2. Performance Measurements and Chargebacks... 6 2.1 On Time Fulfillment Chargeback... 7 2.2 Overage Chargeback... 7 No Chargeback Notation Requests... 8-9 Type 20 PO Revision Requests... 10 2.3 Transportation & Routing Chargeback... 12 2.4 Packaging & Labeling Requirement Chargebacks... 14 2.5 Item Set Up Dimension Chargebacks... 15 2.6 Shipment Errors (Inbound Inventory Exception) Chargebacks... 16 2.7 Bill of Lading Requirement Chargebacks... 17-16 3. Chargeback Dispute Process... 18 4. Vendor Improvement Program (VIP)... 19 5. Vendor Correction of Error Process... 20 Appendix... 21 A. Contact List... 21 B. Resources... 22 C. Frequently Asked Questions (FAQ s)... 23-23 D. Definitions & Acronyms... 25 E. Violations & Chargeback Tables... 26-27 F. Vendor Correction of Error Form... 29 Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 4 of 33
This manual supersedes all prior versions and will be effective for Walmart.com Purchase Orders inbounded to Walmart distribution and fulfillment centers with a Must Arrive By Date (MABD) on or after May 1, 2015. 1. Overview At Walmart ecommerce, we help people save money so they can live better. We are continuously investing in our value chain in order to improve our total value proposition to our customers through: 1) Everyday low price 2) Broad assortment 3) Access to product when and where our customers want it 4) Simple and fun shopping experience Our supply chain plays a key role in supporting our value proposition. The ecommerce Supply Chain Reliability Manual highlights the critical factors which contribute to an effective and efficient supply chain for the inbounding of purchase orders to Walmart ecommerce fulfillment centers. ecommerce Supply Chain is different from the Store s supply chain in many aspects. Understanding the differences and adjusting to meet unique ecommerce needs is critical to our collective success. Noncompliance to these critical factors is detrimental to our value proposition and results in unmet consumer demand or unnecessary higher cost to serve customers. To encourage the highest levels of compliance and performance, Walmart ecommerce utilizes performance chargeback, VIP Program (Vendor improvement program), and Vendor Correction of Error (VCOE) programs. To avoid performance countermeasures, 100% compliance with the requirements set forth in this manual is required. 1.1 General Expectations Walmart.com expects its suppliers to collaborate in improving the overall value chain. To improve our supply chain, Walmart is establishing new fulfillment points across the US, investing in the latest technologies, and improving core business processes. We expect our suppliers to also make continuous improvements to the value chain in order to meet consumer demand and reduce the overall cost to serve our customers. General Tips: Address Concerns Early address PO concerns immediately upon receipt of PO so solutions can be created. Provide Transparency - In order for our supply chain to be most effective, we must have full product visibility throughout the supply chain at all times. Our ability to accurately plan necessitates timely information flow. o Acknowledge PO receipt via EDI within 24 hours of receipt. o Request PO adjustments as soon as possible. o Provide PO shipment status updates via EDI within 24 hours of shipment. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 5 of 33
Use Proper Tools and Follow Process Using prescribed tools and adhering to process ensures that all parties are aware of PO changes/status updates. Noncompliance may result in performance chargebacks, regardless of whether product shipped in full and on time. 1.2 Key Performance Indicator The most important Key Performance Indicator (KPI) for Walmart ecommerce that drives our business is the On Time Fulfillment (OTF) Rate. On Time Fulfillment: Purchase orders (PO) must be fulfilled 100% complete, accurate, and on time per the freight term requirements. The On Time Fulfillment (OTF) Rate represents the rate in which a supplier is able to provide on time fulfillment. To calculate the OTF Rate, divide the units fulfilled on time by the total number of units ordered. Score OTF Rate 5 95-100% 4 90-94% 3 85-89% 2 80-84% 1 Below 80% Suppliers should strive to maintain an OTF Rate Score of 5 (95-100%). 1.3 ASN Requirements ASN (EDI 856): Walmart.com requires suppliers to be ASN (EDI 856) compliant on all shipments into the Walmart network. Suppliers must send correct ASNs within 24 hours of shipping inbound POs going to DCs and RDCs for all PO types both collect and prepaid shipments. Please contact the Walmart EDI team support at EDI@wal-mart.com for assistance in ASN set up. 2. Performance Measurements and Chargebacks In the event that a supplier fails to perform to the expectations set forth by this Manual, the Online Supplier Agreement (OSA) allows Walmart ecommerce to exercise upon remedies in the event of a breach of contract. One such remedy is the issuance of chargebacks related to vendor performance. Multiple performance chargebacks can be issued on a single PO. There is no maximum limit set on a performance chargeback. Note: Only the ecommerce Supply Chain Reliability Team can authorize any exceptions to the requirements set forth in this Manual. Approvals must be provided in writing. No other party can authorize exemptions. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 6 of 33
2.1 On Time Fulfillment Chargeback Failure to deliver purchase orders in full and on time results in missed sales opportunities by creating out of stock situations and increases costs to serve by leading to inefficient inventory coverage. All purchase orders (PO) must be shipped 100% complete, accurate, and on time per the freight terms in order to meet our On Time Fulfillment (OTF) requirements. Rule Code Description Performance Charge OTF On time Fulfillment: PO must be fulfilled 100% complete, accurate, and on time per the freight term requirements. Number of Noncompliant Units (NCU) * NCU Cost * 3% If a PO line has an OTF rate of >=90%, no OTF chargeback will be assessed for that PO Line. 2.2 Overage Chargeback Shipping units over what was originally ordered on the purchase order will result in an overage chargeback. All POs must be shipped and delivered with the correct quantities. Rule Code Description Performance Charge OV Overage Chargeback: Any non-compliant units received over what was ordered There are two main freight terms: Collect and Prepaid. Number of overage noncompliant units (NCU) * NCU Cost * 3% Freight Term On Time Definition Notes Collect (Type 7) Ship Date <= Actual Ship Date <= Cancel Date Applies to Type 7 collect POs. Collect (Type 20) Prepaid (Type 7 & Type 20) Actual Ship Date = Ship On Date (MABD - 3) <= Delivery Date <= MABD Applies to Type 20 collect POs. For Type 7 & 20 POs with ONLINEASAP event code without a transmitted a MABD, vendors should calculate MABD as 7 calendar days from Cancel date All suppliers have the responsibility of managing the carriers assigned/selected so that the vendor will meet its on time fulfillment obligations. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 7 of 33
Illustration of OTF Noncompliance and Overage Chargeback Calculation PO# 1234567890 Line Units Ordered Unit Cost On Time Early Late Short Overage NCU Total Chargeback 1 100 $1.00 100 0 $- 2 200 $2.00 100 100 100 $6.00 3 300 $4.00 100 100 100 200 $24.00 4 400 $5.00 100 100 100 100 300 $45.00 5 500 $6.00 450 50 50 $ - 6 600 $7.00 600 100 100 $21.00 Notes Line 1: 100% On Time Fulfillment Line 2: 100 NCU, (100 unit * $2 * 3%) Line 3: 200 NCU, (200 unit * $4 * 3%) Line 4: 300 NCU, (300 unit * $5 * 3%) Line 5: OTF Rate of >=90% Line 6: 100 NCU, (100 unit*$7*3%) Total 1600 750 $96.00 Helpful Tips: Type 7 Collect POs: Route within the 5-day Routing Window prior to the Ship Date. The Routing Window includes the five days prior to the Ship Date through 24 hours prior to the start of shipping window (DNSB date). Type 20 Collect POs: It is recommended that routing occur within 24 hours of receiving the PO. Best practice is to route by 4PM CST the following business day after receiving the PO. Vendors should use actual PO weight when routing. For POs that have MABD date of 30 days or more, please make sure to route at least 10 days before the start of the Do Not Ship Before Date (DNSB). However, it is recommended that International POs are NOT routed until the PO (product) has arrived in the US. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 8 of 33
No Chargeback Notation Requests All suppliers have the responsibility of notifying the appropriate party as soon as possible of any issues that prohibit them from fulfilling their On Time Fulfillment obligations. Vendors should request for a no chargeback notation (NCB) review by the stated deadline provided in the following table: Issue Type Freight Term Who to Notify NCB Notation Deadline Insufficient Processing Time 1 All Contact your Replenishment Manager Carrier Issue Type 7 Collect transcoordinator@walmart.com One (1) business day after Ship Date One (1) business day after the Cancel Date Within one (1) business day of the missed pickup Note: Carrier Issue Type 20 Collect Must do both steps or chargebacks will be assessed: 1) Report late load notification on WTMS at the close of business day. The load should be reported every day until the load is picked up. 2) Submit GEC TSP ticket for no chargeback notification Carrier no show **For Carrier No Show, Late Pick Up, Carrier rescheduled pickup - proof of communication or copy of submitted WTMS late load notification should be attached with your NCBOT GEC TSP ticket. https://portal.teamsupport.com/login.aspx?orgn ame=gectransportation **Carrier scheduling TL pickup post Ship On Date - proof of carrier pickup schedule request received from carrier should be attached with your NCBOT GEC TSP ticket. 1 Insufficient processing time is defined as having less than one (1) business day to perform PO Revision from PO EDI Acknowledgement (receipt). Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 9 of 33
Delivery Prepaid Open GEC TSP ticket (IB Transportation) https://portal.teamsupport.com/login.aspx?orgn ame=gectransportation First day of the MABD Window (MABD - 3 calendar days) In your request, provide the following information: PO# Load # Carrier Original Pick-up / Delivery Appt Next Pick-up / Delivery Appt Cancel Date MABD Issue Description Type 7 Collect suppliers must request routing within the Routing Window to qualify for a No Chargeback Notation. The Routing Window includes the five days prior to the Ship Date through the day prior to the Ship Date. Routing completed outside the Routing Window will not be evaluated for a No Chargeback Notation Request. Type 20 Collect suppliers are recommended to request routing within 24 hours of receiving the PO or by 4PM CST the next day after receiving the PO. Vendors should use actual PO weight when routing. For POs that have MABD date of 30 days or more, please make sure to route at least 10 days before the start of the Do Not Ship Before Date (DNSB). However, it is recommended that International POs are NOT routed until the PO (product) has arrived in the US. Routing for type 20 POs must be done in RetailLink. If a load is not picked up on the Ship On date, please notify Walmart using the Late Pickup Notification in WTMS/Call Walmart Traffic at 479-277-9560 by the close of your business day as on the Late Load Notification. The loads should be reported every day until the load is picked up. If the load is not picked up after 3 days, please contact Inbound Transportation at 479-277-9560. Type 20 PO Revision requests Beginning February 6, 2017, all Type 20 PO revision to a purchase order by a supplier must be submitted by entering a ticket to the GEC TSP system. The PO will be updated 2 business days after the ticket was opened. Only 1 PO and Revision Request type can be submitted for change per ticket. (https://portal.teamsupport.com/login.aspx?orgname=gectransportation). Types of PO revisions that can be requested: - Cancellation requests (Entire PO or Line Level) - Date Change Request (+/- 4 days from Original) - Cost Change Request Types of PO revisions that will NOT be accepted: - Date Change Request (> 4 days from original) - Quantity Change Request Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 10 of 33
**For additional information on PO revision request, please refer to documentation located in the Knowledge base section of the GEC TSP Portal. ** - If the request is rejected, the ticket will be closed the following morning with a message that the request has been rejected. If there is no reason provided within the ticket itself, someone from the Inventory Management team will reach out separately with reason for rejection. - If the request is approved, the ticket will be closed the following morning with a message that the PO has been updated. - Once the ticket has been closed (either due to rejection or update), please do not respond back to the ticket. If you have a new question or concern, please open a new ticket instead. - If routing has already been requested on your PO, you will need to request routing revision prior to requesting your PO revision. Routing Revision requests should be submitted through the GMT TSP Portal at the following link: https://wal-marttransportation.na1.teamsupport.com (this is a separate TSP portal and will require that you register for a separate account). Once you have submitted your routing revision request ticket, please make note of the ticket number as you will need to reference that number on your PO Revision ticket. - If your order is scheduled for carrier pickup within 24 hours, please call the carrier directly to cancel routing in addition to opening a routing revision request. Failure to cancel with the carrier will result in a TONU chargeback if you are unable to ship when the carrier arrives. - If you are asked to provide additional information once you have already opened your PO Revision ticket, you will have 3 business days to respond back to the ticket. Failure to provide additional information within this time frame will result in the ticket being rejected and closed. - PO Revision tickets are not for general PO inquiries. Opening a general inquiry ticket under a PO Revision ticket type may result in your PO being incorrectly actioned or cancelled. - For more Frequently Asked Questions, please reference the PO Revisions Frequently Asked Questions article in the TSP Knowledge Base (for instructions on using the Knowledge Base, see page 5). All domestic collect PO revision must be requested prior to routing and 1 day prior to Do Not Ship Before (DNSB) Date. All domestic prepaid PO revision must be requested prior to Do Not Ship Before (DNSB) Date. Rule Code Description Performance Charge LT Lead Time Violation: Collect: PO revision is done after routing request is submitted. Prepaid: PO revision is done on/after the Do Not Ship Before (DNSB) Date $200 per PO + OTF Chargebacks may apply for unapproved changes Notes: Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 11 of 33
OTF Chargebacks will be generated when the received order quantity varies from the approved, adjusted order quantity. Chargebacks will also occur when fulfillment is not on time per freight terms unless modification requests were approved. All domestic collect POs that are not routed prior to Cancel Date will be subject to cancellation and OTF chargebacks. 2.3 Transportation & Routing Chargeback Failure to follow our transportation and routing requirements leads to increased and excess freight charges and can slow product flow, leading to additional cost associated with inefficient inventory coverage. Rule Code Description Performance Charge RO1 Wrong Destination: Failure to send shipments to the correct Walmart facility (Mis-shipments) $200 Admin Fee + Incremental Transportation Expense RO2 RO3 RO4 RO5 RO6 R07 R08 Routing Instruction Failure: Walmart carrier selection instructions not followed 2 Type 7 PO: Weight Audit Failure: Correct total shipment weight not entered into TMS Type 20 PO: Weight Audit Failure: Correct total shipment weight not entered into RetailLink/WTMS Type 7 PO: Shipment Routed Outside TMS: Units not routed through TMS system and process Type 20 PO: Shipment Routed Outside RetailLink/WTMS: Units not routed through TMS system and process TONU (Truck Ordered Not Used)/Accessorial: Supplier not ready for pick-up Load Violation: Shipping against a load number more than once Incorrect Routing: Routed PO/PO Line incorrectly, routing partial line (e.g., total ordered units on PO line 1 = 100, Actual routed units: 50) Incorrect Routing: Incorrect item revision submitted $200 Admin Fee + Incremental Transportation Expense $50 Admin Fee + Inbound Weight Chargeback (See RO3 Table) + Incremental Transportation Expense $200 Admin Fee + 2% PO Total Cost + Incremental Transportation Expense $250 Admin Fee per attempt + Incremental Transportation Expense $200 Admin Fee $200 Admin Fee per PO per infraction $200 Admin Fee per PO per infraction 2 Applies to PO with Collect freight term only. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 12 of 33
Helpful Tips: Submit routing only when the shipment is physically available to ship. Type 7 Collect POs should always be routed in TMS and Type 20 Collect POs should always be routed in RetailLink. To avoid TONU (RO5), if a shipment is not ready for the pick-up appointment, notify the assigned carrier as early as possible so that the appointment can be rescheduled. Incorrect Weight Chargeback Table (RO3) Chargebacks are calculated based on 2 factors: 1) Variance from supplier provided weight from actual carrier invoiced weight 2) Shipment Mileage Chargeback amount = $50 Admin fee + Incremental fee per the chart. RO3 Table: Incremental Fee Tier 1 Variance Tier 2 Variance Tier 3 Variance Tier 4 Variance Shipment Mileage (Miles) 10-20% 21-30% 31-40% Greater than 40% 100 or less $ 10.00 $ 15.00 $ 19.00 $ 24.00 101 250 $ 15.00 $ 22.00 $ 29.00 $ 37.00 251 500 $ 21.00 $ 31.00 $ 41.00 $ 52.00 501 1000 $ 29.00 $ 44.00 $ 59.00 $ 73.00 1001 1500 $ 38.00 $ 57.00 $ 76.00 $ 95.00 1501 2000 $ 45.00 $ 68.00 $ 90.00 $ 113.00 2001 2500 $ 51.00 $ 76.00 $ 101.00 $ 127.00 2501 3000 $ 54.00 $ 80.00 $ 107.00 $ 134.00 Greater than 3000 $ 57.00 $ 86.00 $ 115.00 $ 143.00 Helpful Tips: For Type 7 POs, include pallet weight for orders shipping on pallets. For Type 20 POs, please use actual weight when routing. Use the guidelines below to decide whether the shipment is going to go LTL vs. Small Parcel. o Small package shipments are defined as 150 pounds or less and 20 cases or less. For multiple shipments on one load, each PO still must be under 150 pounds but can be up to 300 pounds total and still 20 cases or less. o Our vendors receive routing instructions to ship LTL if they are outside the limit. o Always mark the "ground service" column on the FedEx pick up log sheet. For more detailed requirements on Type 7 shipping instructions, refer to the Walmart.com Transportation Management System Route Request Guide. For more detailed requirements on Type 20 Shipping instructions, submit a ticket to GMT TSP portal (https://wal-marttransportation.na1.teamsupport.com). Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 13 of 33
2.4 Packaging & Labeling Requirement Chargebacks Vendors must follow the Walmart.com Supplier Packaging and Labeling Manual. Walmart.com requires that all merchandise be able to withstand the rigors of transportation in excellent condition through the Walmart.com supply chain and to our customers. Rule Code Description Performance Charge PL1 PL2 PL3 PL4 Helpful Tips: Labeling Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring labeling work. Boxing Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring boxing work. Packing and Handling Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring packing and handling work. General Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring work not covered by PL1, PL2, or PL3. $200 Admin Fee + $1 per unit of work $200 Admin Fee + $1 per unit of work $200 Admin Fee + $1 per unit of work $200 Admin Fee + $1 per unit of work UPC requirements Our facilities require master carton to have the SCC-14 Bar Code label and the selling units need the UPC-A 12 digit bar code Please refer to the Walmart.com Packaging and Labeling Manual for information on creating the UPC-A barcode. Ship-as-is Packaging - A selling unit that exceeds 30 x26 x30 on any dimension must have packaging that is capable of serving as the outbound shipping carton. It must be able to ship-asis in its packaging. (It will not be overboxed by WM.com prior to shipment). Failure to adhere to this policy will result in a chargeback to the supplier. For more details on specific packaging and labeling guidelines to assist you in successfully packaging for direct-to-consumer, small parcel, Truck Load and LTL shipments, refer to the Walmart.com Supplier Packaging and Labeling Manual. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 14 of 33
2.5 Item Set Up Dimension Chargebacks Incorrect item set up leads to preventable, additional costs resulting from allocation based on incorrectly supplied information. Accuracy of shipping dimensions and weight is vital for the Walmart team to make appropriate decisions regarding allocation, carrier selection, distributor selection and estimated outbound shipping cost. Rule Code Description Performance Charge IT1 IT2 IT3 IT4 Incorrect Shipping Dimensions: Failure to provide accurate Shipping Dimensions (variance greater than 5%) Incorrect Package Weight: Failure to provide accurate package weight (variance greater than 5%) Hazardous Materials Not Identified: Failure to provide information on Items that contain Hazardous Materials Invalid Parent/Child Set Up: parent/child items not set up or are incorrect/invalid $200 Admin Fee + Incremental Transportation Expense + (Noncompliant units *COGS * 3%) $200 Admin Fee + Incremental Transportation Expense + (Noncompliant units *COGS * 3%) $200 Admin Fee + Incremental Transportation Expense + (Noncompliant units *COGS * 3%) $200 per Parent PO + $1 per noncompliant units (NCU) Helpful Tips: Ensure accurate shipping dimensions are given in addition to product dimensions. The product dimensions would be the dimensions of the fully assembled item (e.g. a cabinet's dimensions after the customer sets it up) while the shipping dimensions would be the dimensions of the carton in which the product is packaged (e.g. the dimensions of the box with all of the cabinet pieces that the customer received from the carrier). Hazardous materials take many forms and vary by state. Lithium ion batteries and items noncompliant with California Proposition 65 are common examples of noncompliance. To ensure full compliance to both Federal and Local Regulations, items that contain a chemical and/or a battery (see attached WERCS FAQ's for full requirements) will need to complete a WERCS assessment prior to item setup to clearly define any special shipping instructions in regards to hazmat or hazwaste. Also, if your item requires Transit Testing, please ensure that you work with your buyer to complete testing documentation prior to initiating item setup. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 15 of 33
2.6 Shipment Errors (Inbound Inventory Exception) Chargebacks When unexpected shipments are received at a fulfillment center, facilities must incur additional handling and shipping costs to reconcile the unauthorized items. Rule Code Description Performance Charge FC1 FC2 Wrong Item Shipped: Item or quantity not on PO Shipping on Cancelled PO $200 Admin Fee + Incremental Transportation Expense + (Number of Noncompliant Units (NCU) * COGS * 3%) $200 Admin Fee + Incremental Transportation Expense + (Number of Noncompliant Units (NCU) * COGS * 3%) Helpful Tips: Regularly review the Item Master List for any discrepancies so that POs are placed for correct and active items. Update/correct SKU and UPC numbers prior to item shipment with the merchandising team. Type 7 Collect POs should always be routed in TMS. Type 20 Collect POs should always be routed in RetailLink If you are concerned whether or not a PO is cancelled, contact dotcominboundpo@walmart.com. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 16 of 33
2.7 Bill of Lading Requirement Chargebacks A Bill of Lading must be filled out for each load for identification to prevent receipt delays. Rule Code Description Performance Charge BL1 BL2 BL3 BL4 BL5 BL6 BL7 Helpful Tips: Incorrect Origin: BOL contains incorrect origin information (facility name and address) Incorrect Consignee: BOL contains incorrect consignee (incorrect facility number, facility name, or address) Incorrect Freight Terms: BOL contains incorrect Freight Terms (Prepaid or Collect) Incorrect Load: Failure to include Load ID or providing incorrect Load ID Incorrect or Missing PO Number: BOL contains incorrect PO number(s) on Load; All PO numbers associated with the load ID must be on the BOL Missing Total Carton Count Per PO Missing MABD on BOL $200 Admin Fee + Incremental Transportation Expense $200 Admin Fee+ Incremental Transportation Expense $200 Admin Fee+ Incremental Transportation Expense $200 Admin Fee+ Incremental Transportation Expense $200 Admin Fee+ Incremental Transportation Expense $200 Admin Fee+ Incremental Transportation Expense $200 Admin Fee+ Incremental Transportation Expense All purchase order numbers must be listed on the Bill of Lading with the appropriate Walmart.com DC number, location address, freight terms and handling units. Use supplemental pages for additional purchase orders if needed. A complete list of requirements for the BOL can be found in the Walmart.com Supplier Packaging and Labeling Manual. Additionally, vendors should reference the information provided in the Walmart.com Transportation Management System Route Request Guide when filling out Load ID, consignee, and freight terms. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 17 of 33
3. Chargeback Dispute Process To dispute any chargebacks, please submit a TSP ticket in the TSP Portal. Chargebacks issued by escr team may be disputed within 120 days from the date of chargeback issuance by submitting a dispute ticket in TSP. Disputes submitted incompletely, incorrectly, or past the 120 day deadline will be rejected and not be reviewed. Submitting a dispute does not guarantee a reversal of the chargeback. Suppliers are responsible for updating escr team of any contact changes no dispute extensions will be granted for outdated contact information. Vendor Noncompliance Dispute Process: Step One: Review Chargeback Notification and complete the Enter "Y" to Dispute and Reason for Dispute section. Submit a dispute ticket in TSP with all the information associated with the dispute case. Step Two: TSP Link: https://portal.teamsupport.com/login.aspx?orgname=gectransportation Select ecommerce Supply Chain Reliability as Ticket Type. Select Dotcom Disputes as Issue type. Select which type of chargeback is being disputed. Attach all supporting documentation and highlight relevant information. Step Three: Attach all supporting documentation and highlight relevant information. Separate each dispute case based on PO # Label each file with PO # Based on the justification used to challenge a chargeback, various supporting documentation will be required. While each case will be unique, refer to the chart below for the supporting documentation typically provided. Chargeback Category Typical Support Documentation On Time Fulfilment Dated and Signed Bill of Lading - consignor, carrier, consignee Packing List Walmart Email Communication Transportation & Routing Routing Instructions Dated and Signed Bill of Lading - consignor, carrier, consignee Walmart Email Communication Packaging and Labeling Description of labeling Walmart Email Communication approving label used Item Set-Up Item Set-Up Form Photo of Item with measuring tape Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 18 of 33
Bill of Lading Dated and Signed Bill of Lading - consignor, carrier, consignee Inbound Inventory Exception Dated and Signed Bill of Lading - consignor, carrier, consignee Routing Instructions Walmart Email Communication Weight Audit Re-weight certificate or email provided by carrier 4. Vendor Improvement Program (VIP) The Vendor Improvement Program (12 weeks) is a performance improvement program to help selected vendor partners in key operational areas that the escr team has identified. The targeted areas may include (but not limited to) on time fulfillment, on time, fill rate, on time routing, and on time shipping. We will address the opportunities through the Vendor Improvement Program and work closely with the vendor partners within a 12 week program to improve performance. The escr team initiates communication by sending out a performance scorecard highlighting key areas of improvement. Following the initial communication, the escr team will provide a bi-weekly scorecard to the team. The team will decide what best action plans are needed in order to improve operationally and track progress made via weekly emails and/or conference calls. It is the vendor s responsibility to research internally and provide findings to the escr team. The vendor is also responsible for developing action plans and provide weekly progress updates. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 19 of 33
5. Vendor Correction of Error Process Root cause identification of errors is critical to process improvement. A Vendor Correction of Error (VCOE) will be issued to suppliers when, it has been determined that an unacceptable level of risk is present and must be corrected. VCOEs will be issued for individual occurrences or performance over a period of time. Once a VCOE has been issued, there are specific timelines that must be met in order to be in compliance with our requirements. Those requirements can be found on the example VCOE form found in the Appendix of this Manual. There are three stages of the VCOE process. A particular stage is determined by the number of VCOEs issued for a particular type of incident or the number of incidents issued over a period of time. It is important to invest the appropriate resources and time necessary to truly mitigate the root causes identified in the VCOEs. If done right, repeat instances should not reoccur. Stage I VCOE issued for a specific incident or generally poor performance over time Vendor leads process improvement No long-term business impediments Stage II A 2 nd VCOE issued for the same reason within a one year period or two VCOEs issued within 90-Days or three VCOEs issued within 1-year Vendor leads process improvement with increased and additional requirements from the escr team Cross functional vendor leadership participation and commitments required Minimal long-term business impediments, potentially dual source product Stage III Three VCOEs issued for the same reason over any period of time or three VCOEs issued within 90-Days or four VCOEs issued within 1-year escr lead process improvements with an increase in regular performance reporting, onsite business process audits Cross functional vendor executive leadership involvement and commitment Long-term business impediments likely if performance is not improved; dual sourced, cancellation of POs, exit strategy developed Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 20 of 33
Appendix A. Contact List I need help with: Who to Contact: Tel # Type 7 PO: Carrier transcoordinator@walmart.com issues - Pick-up (including no - chargeback notations) Type 20 PO: Carrier Pick up issues Contact Info Update 1) Report late load notification on WTMS at the close of business day. The load should be reported every day until the load is picked up. 2) Submit GEC Transportation TSP ticket for no chargeback notification After 3 days, call 479-277- 9560. Submit a GEC TSP Ticket ecommerce Supply Chain Reliability > Update Contact Info - DC Issues - Delivery Submit a GEC TSP Ticket FC Delivery Appointment Issue appointments/po Refusal (including no - chargeback notations) EDI - Set-up and EDI Support EDI@wal-mart.com Transmission - Fulfillment Center Contact your Replenishment Manager Address/GLN - Invoice - Back-Up Walmart.microfilm@wal-mart.com Documentation - Request Invoice - General WMGSSContactCenter@wal-mart.com Questions (including 888-499-6377 payment confirmation) Item Set Up ItemTeam@walmart.com - Type 7 PO: Load transcoordinator@walmart.com Adjustments - Type 20 PO: Load Submit a GMT TSP Ticket Adjustments Mis-ships Submit a GEC TSP Ticket - Packaging and Labeling labeling@walmart.com - - general questions Performance Chargeback Submit a GEC TSP Ticket ecommerce Supply Chain Reliability > Request Debit Memo - PO - Incorrect PO Information (e.g. cost, Your merchandising team - Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 21 of 33
quantity increase, earlier ship day) PO Re-transmission dotcominboundpo@walmart.com - Retail Link Hotline rlinkhelp@wal-mart.com 479.273.8888 Supply Chain Reliability SCReliability@wal-mart.com (Stores) - TMS for Unrouted Submit a GEC TSP Ticket see Inbound Transportation ticket Type 7 POs section for list of ticket options - TSP - GEC https://portal.teamsupport.com/login.aspx?orgname=gectrans portation TSP - GMT https://wal-marttransportation.na1.teamsupport.com Updating Tracking wmc-tracking@walmart.com Information for non PO - Type 7 Collect Type 20C PO: Add or Walmart GMT - gmtshpnt@wal-mart.com Update ship point Vendor Compliance - performance_management@walmart.com DSV (Direct Ship - Vendors) only Vendor Performance Submit a GEC TSP Ticket ecommerce Supply Chain Reliability Compliance > see dropdown list for escr ticket types - Type 20C Carrier issue Submit a GMT TSP Ticket>Supplier > Pick up Related Type 20C routing questions Needs Submit a GMT TSP Ticket B. Resources The Supplier Toolkit in Retail Link contains resources for Walmart.com suppliers, including the following documents: Walmart.com Supplier Packaging and Labeling Manual Walmart.com Transportation Management System Route Request Guide How to Access the Supplier Toolkit: 1. Log in to Retail Link (https://retaillink.wal-mart.com) 2. Click Docs in the toolbar. 3. Click on S. 4. Click on Supplier Guide. 5. Click on Supplier Guide in the center of the screen. 6. Click on Managing Walmar.com Items --this will open a new window 7. Click on Fulfilling Orders Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 22 of 33
8. Click on Supply Chain Reliability Manual ink: http://rl.homeoffice.walmart.com/rl_docs/adp/eng/5bf1f2d4097c4b018551a246b4f9af7d.html C. Frequently Asked Questions (FAQs) 1. Scope of Program What is the scope of this manual? This manual governs Walmart.com Purchase Orders inbounded to Walmart distribution and fulfillment centers with a Must Arrive By Date (MABD) on or after May 1, 2015. This manual does not govern Walmart entities in countries outside the United States. This manual also does not govern purchase orders for Sam s Club or Walmart retail stores. 2. Unknown Deduction How can I find more info? The escr team only issues performance chargebacks as described in this manual. All other deductions are issued by other Walmart teams. Disputes can only be reversed through the authorized party. To research the party which issued the deduction, please refer to the instructions provided on the invoice. Alternatively, for further assistance contact: Walmart Global Shared Services at 888.499.6377 (Hours: M-F 8:00 a.m. 5:00 p.m. CST) or WMGSSContactCenter@wal-mart.com. You can also visit walmartskip.com for FAQ. 3. Performance Chargeback Back-up Documentation How can I get? The escr team will issue a Chargeback Notification by email to suppliers in the event that a situation of noncompliance occurred. The notification will provide details of the infraction. Suppliers are responsible for updating the escr team of any contact changes so that the notifications are received on a timely basis no dispute extensions will be granted on the basis of outdated contact information. 4. Contact Info How can I update? Submit a TSP ticket > Select ecommerce Supply Chain Reliability as ticket type > Select Update Contact Info as issue type with your 6-digit Walmart.com vendor number with updates. Allow this change to take effect within 2-4 weeks. Please note that you may need to place a request to other relevant Walmart teams to update their contact lists as they may maintain a separate distribution list. 5. Dispute How long do I have to file the dispute? Chargeback disputes must be submitted within 120 days from the date the chargeback was issued through TSP. Make sure to dispute using the correct TSP Dotcom Dispute ticket type. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 23 of 33
6. Dispute How long before I expect to hear a decision? Once a dispute is received with all required supporting documentation, it will be reviewed in the order received (allow 4-6 weeks). The dispute filer will be notified whether the chargeback has been authorized a repayment or if the chargeback stands. 7. Dispute Why was it rejected? Disputes are typically rejected for two reasons: 1. The dispute submission was past the 120 day deadline. Disputes submitted after the deadline will be automatically rejected and not reviewed. 2. The dispute submission did not have sufficient supporting information. Based on the justification used to challenge the chargeback, various supporting documentation will be required. While each case will be unique, many vendors often provide the following types of supporting documentation: Bill of Lading (signed) Packing List (copy) Email Communication with Merchandising Team (copy) Routing Instructions (copy) Packaging and Shipping Label (copy/photo) Item Set-up Form (copy) 8. Chargeback Repayment When will I receive it? Authorized performance chargeback repayments (or reversals) are processed monthly at the close of the month. Repayment should occur by the end of the following month. To confirm repayment details for the performance chargeback, reference the invoice and reference number and contact Walmart Global Shared Services at 888.499.6377 (Hours: M-F 8:00 a.m. 5:00 p.m. CST) or WMGSSContactCenter@wal-mart.com. 9. Scorecard Do you have more information? When possible, Walmart.com will provide a scorecard for review. The scorecard is provided as feedback on consumer selling units (eaches) that were actually received and became Available to Sell at Walmart.com. Thus, scorecard performance will not be updated. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 24 of 33
D. Definitions & Acronyms Term Acronym Definition DNSA/Cancel Date - Date on PO also known as Do Not Ship After Date; marks the end of the Ship Window. Less Than Truckload LTL Less than truck load mode of transportation MABD Window - Time frame of four (4) calendar days including the Must Arrive By Date and the three preceding days. Must Arrive By Date MABD Date on PO which indicates when items should arrive to the Fulfillment Center and be available to sell. Noncompliant Unit NCU Represents the smallest consumer selling unit (eaches) which resulted in a type of noncompliance. Routing Window - Type 7: Time frame beginning with five days prior to the Ship Date through the day prior to the DNSB Date. Type 20: POs can be routed 60 days in advance of the MABD. Best practice is to route within 24 hours of receiving the PO. However, it is recommended that International POs are not routed until the PO (product) has arrived in the US. DNSB/Ship Date - Date on PO also known as Do Not Ship Before Date; marks the beginning of the Ship Window. Ship Window SW Time frame beginning with the PO Ship Date (also known as the Do Not Ship Before Date) and ends with the PO Cancel Date (also known as the Do Not Ship After Date). Utilized by Freight term: Collect WTMS Walmart TMS System (Accessed through RetailLink) Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 25 of 33
E. Violations & Chargeback Tables Rule Code Description Performance Charge OTF OV LT On time Fulfillment: PO must be fulfilled 100% complete, accurate, and on time per the freight term requirements. Overage Chargeback: Any non-compliant units received over what was ordered Lead Time Violation: PO revision done outside of permitted timeframe Number of Noncompliant Units (NCU) * NCU Cost * 3% If a PO line has an OTF rate of >=90%, no OTF chargeback will be assessed for that PO Line. Number of overage noncompliant units (NCU) * NCU Cost * 3% OTF Chargebacks may apply for unapproved changes + Incremental Penalty RO1 RO2 RO3 RO4 RO5 RO6 R07 Wrong Destination: Failure to send shipments to the correct Walmart facility (Misshipments) Routing Instruction Failure: Walmart carrier selection instructions not followed 3 Weight Audit Failure: Correct total shipment weight not entered into TMS 4 Shipment Routed Outside TMS: Units not routed through TMS system and process 4 TONU (Truck Ordered Not Used)/Accessorial: Supplier not ready for pick-up 4 Load Violation: Shipping against a load number more than once 4 Incorrect Routing: Routed PO/PO Line incorrectly, routing partial line (e.g., total ordered units on PO line 1 = 100, Actual routed units: 50) $200 Admin Fee + 2% PO Total Cost + Incremental Transportation Expense $200 Admin Fee + Incremental Transportation Expense $50 Admin Fee + Inbound Weight Chargeback (See RO3 Table) + Incremental Transportation Expense $200 Admin Fee + 2% PO Total Cost + Incremental Transportation Expense $250 Admin Fee per attempt + Incremental Transportation Expense $200 Admin Fee $200 Admin Fee per PO per infraction 4 Applies to PO with Collect freight term only. Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 26 of 33
R08 PL1 PL2 PL3 PL4 IT1 IT2 IT3 IT4 FC1 FC2 Incorrect Routing: Incorrect item revision submitted Labeling Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring labeling work. Boxing Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring boxing work. Packing and Handling Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring packing and handling work. General Rework: Violation of Walmart.com Supplier Packaging and Labeling Manual requiring work not covered by PL1, PL2, or PL3. Incorrect Shipping Dimensions: Failure to provide accurate Shipping Dimensions (variance greater than 5%) Incorrect Item Weight: Failure to provide accurate package weight (variance greater than 5%) Hazardous Materials Not Identified: Failure to provide information on Items that contain Hazardous Materials Invalid Parent/Child Set Up: parent/child items not set up or are incorrect/invalid Wrong Item Shipped: Item or quantity not on PO Shipping on Cancelled PO $200 Admin Fee per PO per infraction $200 Admin Fee + $1 per unit of work $200 Admin Fee + $1 per unit of work $200 Admin Fee + $1 per unit of work $200 Admin Fee + $1 per unit of work $200 Admin Fee + Incremental Transportation Expense + (Noncompliant units *COGS * 3%) $200 Admin Fee + Incremental Transportation Expense + (Noncompliant units *COGS * 3%) $200 Admin Fee + Incremental Transportation Expense + (Noncompliant units *COGS * 3%) $200 per Parent PO + $1 per noncompliant units (NCU) $200 Admin Fee + (Number of Noncompliant Units (NCU) * COGS * 3%) + Incremental Transportation expense/disposal Fee $200 Admin Fee + (Number of Noncompliant Units (NCU) * COGS * 3%) + Incremental Transportation expense/disposal Fee Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 27 of 33
BL1 BL2 BL3 BL4 BL5 BL6 BL7 Incorrect Origin: BOL contains incorrect origin information (facility name and address) Incorrect Consignee: BOL contains incorrect consignee (incorrect facility number, facility name, or address) Incorrect Freight Terms: BOL contains incorrect Freight Terms (Prepaid or Collect) Incorrect Load: Failure to include Load ID or providing incorrect Load ID Incorrect or Missing PO Number: BOL contains incorrect PO number(s) on Load; All PO numbers associated with the load ID must be on the BOL Missing Total Carton Count Per PO Missing MABD on BOL $200 Admin Fee+ Incremental Transportation expense $200 Admin Fee + Incremental Transportation expense $200 Admin Fee + Incremental Transportation expense $200 Admin Fee + Incremental Transportation expense $200 Admin Fee + Incremental Transportation expense $200 Admin Fee + Incremental Transportation expense $200 Admin Fee + Incremental Transportation expense Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 28 of 33
F. Vendor Correction of Error Form Date: Addressee Name: Company Name: Address: City: State: ZIP: This letter is to inform you that VCOE- -VEN has been assigned to you for supply noncompliance. Noncompliance to product, delivery, packaging communication leads to inefficiencies in the supply chain. We have determined CARs to be a crucial step in correcting the root causes of nonconformance inefficiencies. The Corrective Action Response Form is contained on pages 2 and 3 of this document. Complete and return Steps 1 and 2 of the VCOE form to Walmart.com Supply Chain Reliability team via return e-mail within three business days (72 hours) of receipt of this notification. Complete and return Steps 3 through 6 via return e-mail within 14 days of receipt of this notification. Forms that do not fully and completely address the nonconformance will be returned to the supplier for resubmission. Ensure that your investigation accurately identifies the errors and that your corrective actions will sufficiently mitigate further nonconformance. Once the VCOE has been returned to Walmart.com, it will be reviewed for sufficiency and you will be notified if the response has been accepted or rejected. If accepted, the VCOE will be tracked to final completion. If rejected, you will be notified of areas that need further information and/or improvement. Please note, if this request for corrective action is not completed by the dates requested, it can have a negative impact on your Vendor Performance rating. An example corrective action form is attached for your reference. For further explanation, consult our escr Program Manual. Thank you in advance for your partnership, collaboration and commitment to continually improved performance. Please contact me if you have any questions or need more information. Thank you, (650) 837- @walmart.com Walmart.com Vendor Performance Manager (VPM) San Bruno, CA Version 2.4 Walmart Confidential and Proprietary Information. All rights reserved. Page 29 of 33