Walmart Toughens Delivery Demands for Suppliers
Walmart Inc. is raising its delivery goal posts for suppliers, asking them to deliver more goods on time as it competes with Amazon.com Inc. for shoppers online and in stores.
The retailer wants suppliers that ship full trucks of products to deliver orders within a specified two-day window 87% of the time, up from an 85% rate it targeted previously. Suppliers that fill part of a truck with their goods must hit a 70% on-time threshold, a significant jump from the previous target of 50%.
Walmart also is changing how it penalizes suppliers when they make partial deliveries, an effort to make sure products are on shelves when needed, a particular focus for Walmart as it ramps up online grocery pickup and delivery services that pull from store inventory to fulfill orders.
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