"Label Compliance: Incorrect Quantity" Defect

3 min read

What is "Label Compliance" at Walmart? 

Label compliance is one portion of SQEP's Phase 2 program. Walmart measures its suppliers' label compliance against their ability to receive cases based on the shipping label.

In the updated Secondary Packaging Supply Chain Standards (SPSCS '23), Walmart defines label compliance as "incorrect quantity, missing/incorrect description, item #, or supplier stock #, or other labeling defects" (187). For more specific direction on how to stay compliant, see pages 204-211 of the SPSCS '23.

Note: these page numbers are the ones at the top of each page in the SPSCS '23, not necessarily the PDFs page numbers. 

What is the "Label Compliance: Incorrect Quantity" Defect? 

Within SQEP's label compliance standards exist a few common defects, one of the most common of which is "Incorrect Quantity." The SPSCS '23 defines this defect as "Carton markings are present but not on the correct number of sides" (188). Information about the barcode packaging standards for specific categories can be found on the following pages:

  • General Merchandise Packaging Standards: 206-210

  • Produce Packaging Standards: 298-299

  • Meat/Seafood/Poultry Packaging Standards: 295-297

  • Eggs Packaging Standards: 293-294

  • DSDC Packaging Standards: 260-267

  • Direct Import Packaging Standards: 276-283

The "Label Compliance: Incorrect Quantity" defect is often the result of not having perfect compliance with the small details of the SPSCS '23.

How to Prevent Valid "Label Compliance: Incorrect Quantity" Defects

Walmart requires two properly formatted labels on each carton with at least one placed on the longest side. Another important factor is matching item setup in Item 360 with the correct GTIN barcode, Walmart Item Number, and Supplier Stock Number. 

Can the "Label Compliance: Incorrect Quantity" Defect be Disputed? 

Yes, in HighRadius, just like all other compliance fine disputes at Walmart. 

How to Dispute "Label Compliance: Incorrect Quantity" Defects 

If the fine is invalid, assign the FIXit ticket back to Walmart with the dispute reason. Sometimes FIXit tickets will disappear after this if the dispute reason is valid and Walmart accepts it. Even still, it's a good idea to follow up in HighRadius with the ticket number to make sure that the charge disappears as well.

As always, attach any proof documentation to further validate the dispute reason. When filing a dispute, fill in the information for "Dispute Reason," "Amount to be Disputed," "Comments" (if applicable), and "Attachment" (for relevant documents). Sometimes the photos attached to tickets in FIXit will be helpful for making a case.

Disputes can also be monitored and updated in HighRadius under the "Disputes" tab. 

More SQEP: Continued Learning and Our Solution

For an exhaustive resource on all things related to SQEP compliance, download our SQEP Handbook.

If you would like more insight into your SQEP performance and a way to quickly and painlessly dispute invalid SQEP fines, schedule a meeting with a member of the SupplyPike team today!

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Written by The SupplyPike Team

About The SupplyPike Team

SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.

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