WAL-MART FINES TRUCKERS FOR LATE DELIVERIES

[VaPatentman]

Saw this in Super Market News. Could really hit you in the pocketbook.

Walmart is asking its suppliers to improve their on-time delivery performance for both full and partial truckloads or face a fine as part of its effort to reduce out-of-stocks on its shelves and improve the customer shopping experience in the process.

As of April 1, full-truckload suppliers will have to ensure 85% of their orders are received on-time, up from the 75% requirement that was implemented in August; half-truckload shipments will have to meet a 50% on-time threshold on that date, up from 33% currently.

Those not meeting the deadline will face fines implemented in August of 3% of the value of the products that did not hit the target deadline.

[41chevy]

Grocery chain Kroger has  policy that fines suppliers $500 for deliveries that are two or more days late to any of the company’s 42 warehouses. They started that in October of 2017.

Out of stock items cost retailers big time. According to the Harvard Business Review, when a customer finds that a desired item is out of stock, 21% — 43% of shoppers will leave the store to buy the item elsewhere. These shoppers cost retailers losses of as much as 10% of sales. The new fine is intended to help Kroger recover some of these lost sales costs.

Out of stock items cost retailers big time. According to the Harvard Business Review, when a customer finds that a desired item is out of stock, 21% — 43% of shoppers will leave the store to buy the item elsewhere  Data shows that grocers lose $75 billion a year in sales when products aren’t in stock or otherwise can’t be sold.

Edited February 3, 2018 by 41chevy

[RowdyRebel]

Ok, then when a truck shows up on time and has to wait for a door, is Walmart going to compensate the company for the late unload?
Either it works both ways or it doesn't work either way.  You want me there at a specific time, I'll be there.  If you're going to "fine" me if I'm late, then you'd better be prepared to open your check book when I show up on time and you're not ready for me.  No "2 hour window" anymore.  Whatever your specified time frame is before a shipment is deemed "late", that's the length of time you have to assign a door for unloading and get to work.  30 minutes after bumping the dock, the truck needs to be empty and ready to roll.  If you're going to have employees' breaks scheduled, you need to take that into consideration when scheduling trucks so that trucks that show up at their scheduled time don't have to sit and wait...because if they do, it'll cost you.

 

[RowdyRebel]

Grocery is a different animal, too.  Those 2 days that load is "late" means the food on board is 2 days closer to expiration, meaning the store has 2 days less to sell it before it needs to be tossed.

 

[Maxidyne]

A lot of this is Walmart's own doing- They won't hire enough staff so merchandise sometimes takes days to get from the dock to the shelves. The suppliers don't make much selling to Walmart, so Walmart gets their deliveries last, and the carriers hauls to Walmart aren't that profitable either. Thus Walmart becomes a logistics loser and gets the slow service they pay for.

[1965]

I know I’m bad about going somewhere to get something & if there out & I go somewhere else I usually don’t go back to other place

[other dog]

On 2/3/2018 at 8:01 AM, Maxidyne said:

A lot of this is Walmart's own doing- They won't hire enough staff so merchandise sometimes takes days to get from the dock to the shelves. The suppliers don't make much selling to Walmart, so Walmart gets their deliveries last, and the carriers hauls to Walmart aren't that profitable either. Thus Walmart becomes a logistics loser and gets the slow service they pay for.

that could be why they have 25 registers and only 4 are open when I go to the Walmart store on Saturday.

[carlotpilot]

WALMART        BAH

[gxbxc]

They don't want to pay people to work there,they depend on computer inventory so the few people who are employed there have no clue as to where or what is out of stock . I have seen it take a month to restock simple items and another month to find where they put them.When they are out of stock I leave and shop someplace else, they are just passing on the blame for poor managment.

[other dog]

I know people who have worked for Walmart, in fact my two sons both worked at different Walmarts at different times, and I don't think i've ever heard anybody that worked there have anything good to say about it.

[Lmackattack]

Another reason why I will never be seen shopping in that place. its been almost 10 years and the only reason why I did stop in once was because I was out of town and in the middle of nowhere.