{"id":9202,"date":"2026-08-20T00:37:54","date_gmt":"2026-08-20T05:37:54","guid":{"rendered":"https:\/\/www.emagia.com\/blog\/?p=9202"},"modified":"2026-08-20T06:17:48","modified_gmt":"2026-08-20T11:17:48","slug":"walmart-sqep-compliance-guide","status":"publish","type":"post","link":"https:\/\/www.emagia.com\/blog\/walmart-sqep-compliance-guide\/","title":{"rendered":"Walmart SQEP Compliance: What CPG Suppliers Need to Know About the Four Rights"},"content":{"rendered":"

Walmart’s Supplier Quality Excellence Program (SQEP) evaluates every inbound shipment at the point of receipt against four categories \u2014 Right Item, Right Condition, Right Invoice, and Right Time \u2014 and charges a flat administrative fee per purchase order plus a per-case charge for every defect found.<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n
SQEP category<\/strong><\/th>\nWhat it measures<\/strong><\/th>\nLargest driver<\/strong><\/th>\n<\/tr>\n<\/thead>\n
Right Item<\/td>\nShipment matches PO and item setup<\/td>\nQuantity errors, wrong pack sizes<\/td>\n<\/tr>\n
Right Condition<\/td>\nFreight moves without rework or damage<\/td>\nPackaging and pallet configuration \u2014 the single largest fine category<\/td>\n<\/tr>\n
Right Invoice<\/td>\nElectronic and physical documents match<\/td>\nASN issues \u2014 missing, late, or mismatched data<\/td>\n<\/tr>\n
Right Time<\/td>\nShipment meets scheduling requirements<\/td>\nSmallest by volume, most expensive per incident<\/td>\n<\/tr>\n
Dispute window<\/td>\n\u2014<\/td>\nRoughly one year from the fine date<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Every case shipped into a Walmart distribution center is evaluated the instant it’s received \u2014 not just for what’s inside the box, but for how it’s packaged, labeled, and documented. SQEP is one of the most common, and most preventable, sources of deductions for CPG suppliers, and it runs alongside two related programs worth knowing: OTIF, which governs delivery timing and completeness, and the broader claims and chargeback dispute process SQEP fines flow through once they’re issued.<\/p>\n

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What Is SQEP?<\/h2>\n

SQEP is Walmart’s inbound quality enforcement framework, applied automatically across the full U.S. distribution network \u2014 regional DCs, import facilities, grocery DCs, e-commerce fulfillment centers, and direct-store-delivery consolidation points \u2014 with no exemption based on supplier size or shipping channel.<\/strong><\/p>\n<\/div>\n

Every shipment is evaluated against SQEP standards the moment it’s received, and defects are recorded at the case, pallet, or load level.<\/p>\n

Non-compliance carries a real cost: a flat administrative fee per purchase order<\/a> plus a per-case charge for every non-compliant case. At meaningful shipping volume, even a low single-digit defect rate can translate into tens of thousands of dollars a year \u2014 before OTIF or ASN penalties from the same shipment stack on top.<\/p>\n

Curious how much of that is currently recoverable? Book a discovery call to see how a SQEP dispute review works before your next fine cycle closes.<\/p>\n

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The SQEP Four Rights Framework, Explained<\/h2>\n

SQEP sorts every possible shipment defect into four categories, and knowing which one a fine falls under is the starting point for both prevention and dispute<\/a> \u2014 the documentation that clears a Right Item dispute won’t clear a Right Invoice one.<\/strong><\/p>\n