Supply Chain and Logistics Flashcards

A supplier shipping to a Walmart distribution center has a Purchase Order with a "Must Arrive By Date" (MABD) of April 10th. The delivery arrives at the DC on April 9th. Under Walmart's current On-Time In-Full (OTIF) program, how would this delivery be classified?

Answer: On-Time, as some departments allow for a one-day early arrival.

Walmart's OTIF policy specifies delivery windows, and for certain departments, arriving one day before the MABD is considered on-time. Deliveries that arrive outside the specified MABD window, whether early or late, are typically considered non-compliant and negatively impact the OTIF score, which can lead to a 3% COGS penalty, not 5%.

Which of the following technologies is Walmart mandating for an expanding range of product categories to improve inventory accuracy, reduce out-of-stocks, and enhance supply chain visibility?

Answer: Radio Frequency Identification (RFID)

Walmart has been progressively expanding its mandate for suppliers to use Radio Frequency Identification (RFID) tags on products. This initiative aims to provide real-time, item-level tracking throughout the supply chain, which significantly improves inventory accuracy and visibility, and helps prevent out-of-stock situations.

A supplier is reviewing their performance in Retail Link and notes a deduction related to the Supplier Quality Excellence Program (SQEP). Which of the following is most likely the cause of this deduction?

Answer: The GS1-128 barcode labels were placed incorrectly on the cases.

The Supplier Quality Excellence Program (SQEP) focuses on the operational compliance of how products are packed, labeled, and prepared for shipment. Common SQEP infractions include incorrect barcode formats (like GS1-128), improper label placement, and non-compliant pallet usage. On-Time and In-Full issues are tracked by the OTIF program, not SQEP.

Walmart's logistics strategy heavily utilizes a technique where inbound goods from suppliers are sorted and loaded directly onto outbound trucks for store delivery, minimizing storage time in the distribution center. What is this practice called?

Answer: Cross-Docking

Cross-docking is a core component of Walmart's efficient logistics network. This process involves receiving products at a distribution center and immediately transferring them to outbound transportation without storing them in the warehouse. This significantly reduces inventory holding costs and speeds up the delivery of goods to stores.

A new supplier for Walmart is setting up their first shipment. They are responsible for arranging and paying for the transportation to Walmart's distribution center. What type of freight arrangement is this?

Answer: Prepaid

In a 'Prepaid' freight arrangement, the supplier is responsible for organizing and paying for the carrier to deliver the goods to Walmart's specified location. This is in contrast to a 'Collect' arrangement, where Walmart manages and pays for the transportation from the supplier's facility.

Walmart's Project Gigaton is a major supply chain initiative focused on which of the following goals?

Answer: Reducing one billion metric tons (a gigaton) of greenhouse gas emissions from the value chain.

Project Gigaton is Walmart's ambitious sustainability initiative aimed at working with its suppliers to reduce or avoid one billion metric tons (a gigaton) of greenhouse gas emissions from the global value chain. The company announced it reached this goal six years ahead of its 2030 target.