Here are three things to know.
- Wal-Mart first created its delivery compliance standards in 2010 when it set a “must arrive by date” for all products and gave suppliers six months to comply. The company’s current guidelines create a four day delivery window, allowing products to arrive two days before or after the expected date.
- If suppliers fail to deliver the product in this delivery window 10 percent or more of the time, they are charged 3 percent of the cost of goods of all non-compliant deliveries,, according to the report.
- Starting in February, Wal-Mart will tighten the delivery window to just two days — a product must arrive on the scheduled date or the day before — and boost the delivery compliance requirement from 90 percent to 95 percent.
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