New Sam's Club Compliance Fines
The new compliance program for suppliers can result in fees per item, per location, and per unit affected.
Sam's Club has announced a new compliance program for suppliers. The new initiative, known as Supplier Item Data Excellence (SIDE) was launched with the intent of ensuring accuracy in item weights and dimensions. The program will go into effect on March 1, 2024.
As with most new Walmart and Sam's Club initiatives, there are fines associated with non-compliance. The fines are per item, per location, and per unit affected.
SIDE Details
- Incorrect item setups will incur a fee of $637.97 per item, plus $122.21 for each location affected.
- Suppliers will be allowed one warning for the first non-compliance instance. Communication of any non-compliance will be sent via email.
- SIDE impacts all items in Sam's Club supply chain, including Clubs, Dry Goods Distribution Centers, Import Distribution Centers, and Fulfillment Centers.
- Fines will be handled by Sam's Co-Op application. Supplier disputes must be resolved within Co-Op, not through the standard dispute portal.
- A 10% tolerance is allowed for all item dimensions and weights. Suppliers can avoid fines by ensuring accurate item dimensions and weights are entered correctly during item setup.
- Less-than-truckload (LTL) shipments will incur an additional $50 per unit cost.
This new initiative further highlights the need for suppliers to ensure that they are providing accurate item weights and dimensions during item setup.
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