Shipping & Logistics
Walmart SQEP Compliance
(Supplier Quality Excellence Program)
SQEP, Walmart’s Supplier Quality Excellence Program measures end-to-end supply-chain accuracy, from PO and labeling to packaging and transportation. It’s rolled out in phases (barcode/label compliance is a core phase), and defects accrue charges, so getting it right protects both flow and margin.
Updated: June 2026
What Is Walmart SQEP?
SQEP is Walmart’s program for supply-chain precision. Its key areas are PO accuracy, barcode and labeling compliance, packaging/pallet/load standards, and scheduling and transportation compliance.
How Is SQEP Scored? (Phases & Defects)
SQEP evaluates shipments against defect categories tied to its phases; barcode/label compliance, for example, is measured by whether cases scan correctly at receiving. Defects accrue charges, and suppliers monitor performance through Walmart’s SQEP dashboard.
What Are SQEP Penalties and Defects?
• Fines for missing or incorrect SQEP criteria
• Charges for shipment discrepancies or ASN inaccuracies
• Fees tied to labeling or packaging errors
(Always confirm current charge amounts in Walmart’s Supply Chain Standards.)
How Do I Avoid SQEP Charges?
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Meet all SQEP requirements before shipment
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Follow Walmart’s packaging, labeling, and shipping guidelines (including GS1-128)
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Maintain accurate ASNs and shipment documentation
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Build internal processes for consistent compliance and monitor the SQEP dashboard
How OCM Helps with SQEP Compliance
OCM identifies compliance gaps, improves processes, and supports accurate execution, including ASN accuracy and barcode compliance to reduce defects and avoid penalties.