If you are a Walmart supplier, you likely already know what the term Must Arrive by Date (MABD) means. If you aren't familiar with MABD or want to learn more, you're in the right place. Our team has outlined the five things you need to know about Walmart MABD to help you deliver upon your promises to the nation's largest retailer.
- First of all, what is MABD?
The MABD initiative was established in 2010 under the Supply Chain Reliability (SCR) Program. This was a program created to hold suppliers accountable to Walmart's new criteria for delivering product to its distribution centers (DC's).
The overall goal of MABD and the SCR Program is to help Walmart streamline its supply chain and ensure products are on the shelves when consumers are ready to buy. It also reduces the amount of inventory on hand, therefore, reducing Walmart's inventory carrying costs.
The MABD window is a date range that is listed on the Walmart order write. The product has to deliver within the MABD window, or else the supplier will face penalties. Currently, the MABD window is set at 90% on-time with a four-day window (MABD and the three days prior).
- MABD non-compliance can cost you.
MABD non-compliance can cost suppliers in a monetary sense as well as in respect to their relationship with Walmart. If Walmart suppliers fail to comply with the 90% on-time requirement, the supplier is assessed a reimbursement charge of 3% of the cost of the goods sold (COGS). If consistent non-compliance occurs, the supplier's relationship with the Walmart buyer and replenishment manager could be impacted, and future sales could be lost.
- How do suppliers monitor their MABD performance?
Each Walmart supplier is given Retail Link login details. Retail Link is a web-based portal where Walmart shares information with the supplier and updates key performance metrics. MABD compliance is communicated via a weekly scorecard and monthly report which is accessible through the Retail Link portal. Some metrics included on these reports are supplier MABD performance, PO (purchase order) details and possible assessment of reimbursement charges.
- The MABD window is soon changing.
On January 1, 2017, the MABD threshold will increase to 95% on-time with a one-day window (MABD only) for Grocery and Consumables and a two-day window (MABD +1 day) for General Merchandise and Softlines. If suppliers are currently struggling with MABD compliance or simply unsure of how to logistically comply, the road only looks to be growing more difficult. Click here to learn more about the changes.
- Prime Distribution Services can help suppliers achieve MABD compliance.
Prime Distribution Services, a third-party consolidation company, can help you achieve compliance with MABD. Our team has been specializing in Walmart consolidation for over 20 years and therefore, has the knowledge and experience to help guide you to Walmart success. With proven processes and a state-of-the-art Warehouse Management System (WMS), we relieve the stress of complying with MABD requirements. We also optimize each truckload destined for Walmart DCs so that suppliers are only paying for the space needed. Partnering with Prime Distribution Services also decreases touch points throughout the supply chain, minimizing damages. Overall, Prime Distribution Services can help suppliers reduce supply chain miles, transit times and consequently transportation spend while enhancing MABD compliance.
Contact us today to learn more about our retail consolidation solutions.