Wal-Mart joins retailers imposing penalties for late deliveries

Effective February 1, 2010, Wal-Mart suppliers are assessed a penalty if they fail to deliver to the company’s regional distribution centers within a four-day window. Wal-Mart spokesman Dan Fogleman told the Arkansas Democrat-Gazette that the company previously requested delivery within a four-day window but had no incentives for suppliers to meet the schedule. He also said that competitors Target, Best Buy and Kohl’s already assess penalties for early or late deliveries. Fogleman explained that if products arrive at distribution centers earlier than expected, that drives up storage costs. If they arrive late, the products aren’t available for customers. Truckers contacted by the newspaper are concerned about the trend toward late delivery penalties which may trickle down to the carrier in the event of unexpected delays.