"Pallet Quality: Fair Quality" Defect

What is "Pallet Quality" at Walmart? 

Pallet compliance is one part of SQEP's Phase 3 program, the others being Packaging and Load compliance.

In the updated Secondary Packaging Supply Chain Standards (SPSCS '23), Walmart defines "Pallet Quality" as "Non-complian[ce] with Grade A standards, non-compliant size, or other pallet quality defects." For more specific direction on how to stay compliant with pallet standards, see pages 230-233 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 "Pallet Quality: Fair Quality" Defect? 

Walmart's Pallet Quality compliance is subdivided into three defects: Poor Quality, Fair Quality, and Non-Compliant Pallet Size. Of these three the most common is "Poor Quality," followed closely by "Fair Quality." Both represent roughly the same amount of dollars lost for suppliers.

"Pallet Quality: Fair Quality" is defined as "Did not meet Walmart pallet standards but can be utilized in the DC," meaning that it is usable but doesn't meet the standards on page 231 of SPSCS '23:

• No raised nails

• No leading edge boards missing more than 1.5" of wood

• No broken boards

• No unsecured boards

• No leading edge board missing more than 1" width x 10" length

• No blocks/ companion boards

• No metal plates or corrugate repairs/ patched boards

• No broken stringers across the height or doubling up on stringers

• No Cracking on the top or bottom boards greater than 1/8" width x 15" length

• No Stapling or Glue

• No pallet restraining devices that touch trailer flooring

Other parts of the SPSCS '23 with relevance to correct pallet compliance are:

• Pallet Labeling - Perishable Labeling Requirements: 303

• Pallet Labeling - General Merchandise: 206-210

• Pallet Labeling - Direct Import: 276-283

• Pallet Securement - Stretch Wrap: 229

• Pallet Securement - Unitized Shipments: 239

• Pallet Build - Unitized Shipments: 225

• Pallet Build - Double Stacking - Inbound to Walmart: 222

• Pallet Build - Direct Import: 276-283

• Pallet Quality - Pallet Standards: 216-219

How to Prevent Valid "Pallet Quality: Fair Quality" Defects

On page 230 of the SPSCS 23, Walmart enumerates their "Minimum Grade A Stringer Pallet Standards" in detail:

• Full pallet 48" +/- .25 x 40" +/- .25"; partial four-way entry.

• The width of these pallets (the 40" side) can be expanded to fit the product in question; all other requirements are to be maintained.

• Half pallet 48" +/- .25 x 20" +/- .25", for approved programs only.

• Quarter pallet 24" +/- .25 x 20" +/- .25", for approved programs only.

Note: the maximum loaded weight for a standard, Grade A pallet is 2100 lbs.

The most important aspect for avoiding pallet quality fines is the pallet condition. Page 231 of the SPSCS 23 gives an exhaustive account of characteristics of pallets that have fallen out of compliance with Walmart's standards. 

Can the "Pallet Quality: Fair Quality" Defect be Disputed? 

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

How to Dispute "Pallet Quality: Fair Quality" 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). In the case of pallet compliance, the photos attached to tickets in FIXit will likely be essential to (1) knowing if the fine is valid in the first place (2) and for making a convincing case when the fine actually is invalid.

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!