SQEP Overview

What Is SQEP?

The Supplier Quality Excellence Program (SQEP) is Walmart's supplier compliance initiative designed to improve product quality, shipping accuracy, and supply chain efficiency. The program helps identify operational issues, reduce handling costs, and improve overall fulfillment performance. Walmart currently monitors dozens of compliance defects, with additional defect categories expected as the program continues to evolve.

SQEP provides suppliers with greater visibility into compliance issues, helping them identify recurring defects, reduce unnecessary charges, and improve operational performance.

SQEP Dashboard

The SQEP Dashboard provides a high-level overview of supplier compliance performance. By default, dashboard data is filtered to the current month, although users can adjust the calendar filter to analyze different reporting periods.

Charts such as Charges Over Time and Defect Trends display historical data across the year, allowing suppliers to identify recurring compliance issues, seasonal patterns, and the largest sources of revenue loss. A monthly summary further breaks down performance across the six primary defect categories.

SQEP Defects

The Defects page displays transaction-level information for every compliance defect identified by Walmart. Each purchase order includes detailed information from Retail Link, making it easier to investigate issues and understand why charges occurred.

Because a single purchase order may contain multiple defects, reviewing all related issues in one location helps suppliers identify root causes and implement corrective actions.

Defect Images

For applicable inspections, Walmart provides images documenting compliance issues. The system includes the inspection photos along with the defect category, defect subtype, ticket number, and item number.

Images can be filtered, downloaded, and rotated, making them useful for dispute documentation, internal reporting, and root cause analysis.

Defect Categories with Images

• Case Compliance
• Pallet Compliance
• Packaging Compliance
• Load Compliance

ASN Compliance and PO Line Accuracy do not include inspection images because they are based on system data rather than physical product inspections.

What Is FixIt?

FixIt is Walmart's inspection platform used for managing labeling, packaging, pallet, and other compliance issues identified during supplier inspections. Defects discovered during random inspections are recorded within the FixIt dashboard, where suppliers can review findings, submit corrective actions, and communicate directly with Walmart regarding inspection details.

Can SQEP Charges Be Disputed?

Yes. SQEP charges can generally be disputed through Walmart's designated dispute platform. Supporting documentation requirements vary depending on the defect type. Inspection photos are often valuable when disputing packaging, pallet, or labeling defects, while overage-related charges may require shipment and receiving documentation similar to an OTIF In Full dispute.

Key SQEP Metrics

Conclusion

The Supplier Quality Excellence Program gives suppliers greater visibility into compliance performance by combining defect reporting, inspection images, historical trends, and operational metrics. By monitoring recurring issues, analyzing defect data, and addressing root causes, suppliers can reduce compliance charges, strengthen operational processes, and improve overall supply chain performance.