* Suppliers prodded to deliver within 4-day period
* Those that miss delivery window could face penalty
SAN FRANCISCO Feb 9 Wal-Mart Stores Inc
(WMT.N) is imposing new delivery requirements on its suppliers
aimed at making sure merchandise does not arrive in its U.S.
distribution centers either too early or too late.
As of Feb. 1, companies delivering goods to Wal-Mart
warehouses need to have their merchandise arrive within a
four-day window leading up to a "must arrive by date," or a
Suppliers that are consistently early or late in delivering
goods and now miss the window could face a penalty.
"Those suppliers which have an ongoing record of missing
this designated 4-day delivery window, they'll have 3 percent
of the cost of goods deducted from the invoices for each
delivery that doesn't arrive on time," said company spokesman
Fogleman said there was no incentive in place prior to
implementing the new rules to encourage suppliers to get their
merchandise to its distributions centers on time.
"This helps ensure the steady flow of freight through the
system so that the stores are stocked appropriately, but at the
same time you're not warehousing a lot of things and handling
them multiple times," he said.
MABD are used by other retailers, and Fogleman said
Wal-Mart's new policy is in line with late charges imposed by
competitors. Fogleman said there is an appeals process if there
are extenuating circumstances that hamper a delivery.
(Reporting by Nicole Maestri; Editing by Gary Hill)