Walmart Stores USA General Merchandise Quality Manual Table of Contents 1
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Walmart Stores USA General Merchandise Quality Manual Table of Contents 1. Introduction 2. Walmart Responsibilities 3. Supplier Responsibilities 4. Compliance 5. FCCA 6. Supplier Assessment 7. Approved Testing Laboratories a. Consumer Testing Laboratories: 479-286-2300 b. Intertek Laboratories: 479-845-7175 c. Bureau Veritas Laboratories: 479-845-7451 d. SGS Laboratories: 479-273-3786 e. Specialized Technology Resources (STR) f. ACT g. TÜV h. MTS 8. Production Sample Sealing Process 9. Testing Manuals a. Softlines Testing Manual b. Hardlines Testing Manual i. D19 Fabric Testing c. Toys and Seasonal Testing Manual d. Entertainment Testing Manual 10. Color Standards 11. Packaging Requirements 12. Inspections 13. Glossary 14. Appendix a. Product Removal b. Return Center Process 15. Revision History 1 | P a g e Introduction (Return TOC) Through the foresight of our founder, Sam Walton, a philosophy of “doing the right thing” for the customer has become a hallmark of what Walmart is all about. We have as our guidelines for doing business three basic beliefs: Service to our Customers Striving for Excellence Respect for the individual means giving the customer what they deserve, the best quality at a valued price. Service to our Customer means we provide what they want when they want it. And lastly, we strive for excellence by exceeding their expectations. This means we do not just want good quality; we want consistent, excellent quality that is as good as or better than our competition. You as a supplier are the key to Walmart living up to these beliefs. Quality cannot be inspected into a product after it is manufactured. Quality must be designed into the item. The earlier a product is assessed for compliance to specifications, safety requirements, performance requirements and manufacturability, the more cost-effective the process. Once the design is validated, the manufacturing process should have defect prevention solutions embedded throughout the process in order to be the most cost effective. Suppliers must focus on the prevention of quality issues, not just their correction. This purpose of this guide is to provide a convenient source of Walmart quality requirements and expectations. 2 | P a g e Walmart Responsibility (Return TOC) Communicate clearly to our suppliers Walmart quality expectations and processes. Provide a single source to guide suppliers through the Walmart quality process. Testing requirements will vary based by brand and supplier designation. Designations are listed below: Private Label: Brands that are exclusive to Walmart, including un-branded product exclusive to Walmart. Non-Private Label: Brands that are supplier brands or national brands Suppliers who produce Private Label products may classified as Direct or Indirect Suppliers. Direct Suppliers control and manage their business with Global Sourcing oversight. The factory manages and executes quality and Walmart validates quality. Indirect Suppliers control and manage their business domestically with buyer oversight. The Supplier manages quality, factory executes quality and Walmart validates quality. National Brand Suppliers own the product and label, which is well-recognized within the product category and manage their business domestically with buyer. The supplier manages, supplier/factory executes quality and Walmart validates quality. Walmart utilizes the three teams to handle product performance and quality: Quality Control, Quality Assurance and Technical. The mission of the Quality Control team is to monitor Walmart products to ensure conformance to Walmart standards and identify ways to eliminate causes of unsatisfactory performance. Quality Control is responsible for product once it is in the stores and includes the management of the Walmart In-store testing program, monitoring of Defective Return Rates and to inform the merchant, sourcing, quality assurance, technical and supplier when performance does not meet customer requirements. The Quality Assurance team is responsible for working with overseas factories and suppliers to resolve quality issues, ensure implementation of corrective actions and perform quality inspections as necessary. The Technical team is responsible for the creation and maintenance of performance standards, product specifications and the pre-production/production testing process with 3rd party testing labs. 3 | P a g e Our goal is to ensure our suppliers understand and conform to our quality requirements and provide quality products that exceed our customer’s expectations and allow them to save money and live better. 4 | P a g e Supplier Responsibility (Return TOC) You have been chosen as a Walmart supplier because you are the leader in your industry in consistently providing defect-free products, on time and at competitive prices. Suppliers are required to have an effective quality system that ensure conforming product is delivered to Walmart and you are continually improving all processes in an effort to support Walmart quality goals and our customer’s needs. Walmart requirements and expectations should not be your only quality process. We expect your own quality initiatives to provide best in class, quality, reliability, consistency and performance. Even when Walmart provides suppliers product requirements, specifications, or other forms of expectations (e.g. form, fit, or function), the supplier is responsible for complying with all applicable laws and regulations, as well as, Walmart quality and corporate standards. As a Walmart supplier, you are responsible for the following: 1. Work with Walmart Compliance and Technical Resources to ensure all applicable federal and state regulations and/or industry standards are built into the product. 2. Know the Walmart Quality Manual. 3. Ensure performance requirements are met. 4. Ensure all purchased materials meet the required standards and specifications. 5. Review the product specifications with factory’s production and quality personnel to ensure they understand Walmart’s expectations in product performance and quality. 6. Have effective and timely processes in place to implement corrective and preventive actions and quality improvements. 7. Complete product testing early enough so as not to delay orders from shipping on time. 8. Correct unsatisfactory test results, submit improved sample to the designated laboratory for retesting and approval prior to shipment. 9. Communicate with Walmart if any expectations of product performance and quality cannot be met. 10. Communicate in writing any changes to product specifications and obtain approval prior to making any product changes. 11. Keep records of all revised or updated product specifications and drawings and make them available on request. 12. Monitor product quality throughout the entire production process and on all manufacturing lots. 13. Monitor quality performance on an on-going basis and have an acceptable plan to improve quality. 14. Notify Walmart about any trends on product performance and monitor Walmart quality performance measures such as Defective Return Rate (DRR) and In-store testing performance. 5 | P a g e We ask you to help our customers save money and live better by understanding and conforming to our quality requirements and by ensuring our products are produced right the first time. 6 | P a g e Compliance Documentation on Retail Link (Return TOC) You can access all the documentation concerning product safety and regulation using the following path of Retail Link Site Map>Product Safety and Compliance Library The Compliance library contains documents published by the Corporate Compliance team for your use. Factory Capability& Capacity Audit (FCCA) Guidelines (Return TOC) FCCA is applicable to all Direct Import Factories (non-food and non-packaging) A Factory Capability and Capacity Audit (FCCA) is required prior to order commitment for new factories of all supplies classification and retails markets. All FCCA audits will be conducted by Walmart designated third parties audit companies at the supplier’s cost. Below are the designated third party audit companies: Bureau Veritas Intertek SGS Direct Sourcing Group (DSG) assigns a third party audit company for FCCA audit if the supplier is managed by DSG. The FCCA audit cost is dependent on factory location, e.g. in China, the audit cost is typically USD 450 (for factories located within 100km from the audit company’s nearest office). All Walmart Direct Import Suppliers (non-food and non-packaging) are responsible to book the audit early as possible, and promptly pay the audit fee in advance. All arrangements must be directly with the designated audit company, and not through Walmart. Delays due to late scheduling of the request for the FCCA audit will mean that orders cannot be placed. FCCA – Why To ensure factories are:- Capable of producing the proposed product Can produce safe and legal product Able to produce the proposed order quantities on time Aware of any improvements required to meet Walmart requirements 7 | P a g e FCCA – When NEW Factory Pre-Qualification Factory has not previously made any product for Walmart Inactive factory to be re-activated Change of Importer of Record - Domestic to Direct Import Factory FCCA report has expired Change of factory status, e.g. Factory’s physical location Assessment Guideline: Result Rating > 80% A – Pass 60% - 79% B – Meets minimum requirements < 60% C – Unacceptable Note: Factory will not be activated until all pre- qualification requirements are met. A follow up audit may be required. IMPORTANT All