Wal-Mart gets stricter with suppliers

Tightens delivery deadlines, adds new fines

Bentonville, Ark. – Wal-Mart Stores is zeroing in on inventory with a new program that keeps suppliers’ deliveries punctual.

Or else.

The new program, succinctly dubbed “On-Time, In-Full”, imposes new fines on suppliers if their product deliveries arrive one or more days late, one or more days early or not packaged properly.

In other words, suppliers must deliver their goods to Walmart stores as planned, and on time to avoid paying a penalty, according to a report today by Bloomberg.

Wal-Mart’s goal is to add $1 billion to revenue by offering its customers better availability of products, Bloomberg said based on a recent Wal-Mart presentation it obtained.

Also motivating this strategy is increasing pressure Wal-Mart is feeling from major competitors, namely Amazon.com, which recently announced its acquisition of Whole Foods.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

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