Your mOTIFation for Shoring Up Compliance Scores

Hey Vendorville, 👋

October has so far been one for the record books when it comes to potential supply chain disruptions. Between the brief strike by the International Longshoremen's Association and the devastation of multiple Category 3+ hurricanes in the Atlantic Ocean, supply chain professionals have been watching the news anxiously for signs of change.

Beyond the devastation these hurricanes have caused countless communities, their ripple effects are about to be felt throughout the global supply chain. Some quartz mines impacted by Hurricane Helene are likely to cause supply chain disruptions in the tech industry, and the general devastation will likely disrupt bananas, beer, and coffee supply chains.

Luckily, life after COVID means supply chain experts are more prepared than ever for these disruptions.

nOTIFications 🤳

When Walmart launched its OTIF program in 2018, it had no idea that a global pandemic a few years later would result in supply chain disruptions like the modern retail industry had never seen before.

On the other side of the epidemic, compliance programs (like Walmart’s OTIF and SQEP) have helped retailers and suppliers identify inefficiencies in the supply chain, acting as a signpost to bigger problems.

Not Getting SQEPt Away 🌬️💨

Getting back on track from COVID meant that retailers wanted to get their (and suppliers’) supply chains back on track and (hopefully) more efficient than ever before.

At Walmart, this took the form of a new, more sophisticated compliance initiative called SQEP (pronounced SK-wĕp), or—if you prefer a more inefficient pronunciation—the Supplier Quality Excellence Program.

The intricacies of this program made Walmart’s OTIF look like a walk in the park on a Sunday afternoon. Now, suppliers have to align their shipping practices with a 200+ page document called the Secondary Packaging Guide, which has a new, updated version every year.

🌞 Looking on the Bright Side 🌞

For some suppliers, the SQEP program is a major hurdle, while others have used it as a way of learning about their own supply chain efficiencies. While it’s important to remember that Walmart’s idea of supply chain efficiency may have somewhat different priorities from supply chain teams at massive CPG organizations, it is helpful for retailer teams to get a better sense of the retailer’s priorities.

Some helpful tips for thinking about compliance proactively:

Internal Processes:

Create systems for storing proof documentation
Communication plans for internal teams
Process for ongoing training

External Sourcing:

Software and automation
3rd party education/guidance (like SupplierWiki 😉)
Additional hiring/contract work (if no automation)

In Other Retailer News 📰

CNN

The port strike is over. Here’s what happens next

“It took only three days for one side to blink and the potentially crippling strike at the United States’ East and Gulf Coast ports to come to an end, with likely only limited damage to America’s economy.”

Walmart.com

Walmart Data Ventures Signals Growth at Inspire, Announces New Name for Insights Ecosystem

“‘Scintilla’, a Latin term meaning ‘spark,’ signifies the power of a single insight to ignite a new idea, much like how even the smallest, most granular piece of data can drive business decisions that make a significant impact.”

Go Local Prov Business

CVS’s Board Considering Splitting Up Company - 2,900 Layoffs Announced

“The Wall Street Journal is reporting that one of America’s largest corporations, CVS, is considering dramatic changes.”

Rick’s Tips 💘

"While Walmart was busy rebranding their new reporting app, Luminate, to Scintilla (no, it’s not a crepuscular rodent), suppliers have been wondering what effect (if any) this will have on their actual reporting.

Walmart’s answer in the short term is “nothing.” The change from “Luminate” to “Scintilla” seems to be only cosmetic as of now. Rick advises cautious optimism in this regard: keep your ear to the ground for future changes in the app by going to walmartluminate.com/releaseNotes."

Let's Circle Back 🌀

Vendorville. Let’s level set. Let’s circle back and get aligned on our KPIs.

Staying on top of your work is tough, and studies show [citation needed 😉] that productivity can be improved with timely “brain breaks.”

Lately, we have been doing “continued education in macro-economics” 😂 by playing Tradle. In this daily game, a particular nation’s major exports and GDP are shown, and you have six guesses to name the country!

Enjoy!

Sincerely,

Your Friends in Vendorville ❤️