Supplier Item Data Excellence (SIDE) Initiative
In this article you will find the following information regarding the Sam's Club Supplier Item Data Excellence Initiative and underlying programs.
Overview
Incorrect UPC Program
Incorrect Weights and Dimensions
Expectation for Suppliers
Key Takeaways
Frequent Asked Questions – Incorrect UPC Program
Frequently Asked Questions – Incorrect Weights and Measurements
Overview
At Sam’s Club, delivering a friction-free shopping experience and consistent value for our members is central to our member-obsessed strategy. To uphold these promises, it is essential that goods flow seamlessly through our supply chain and that every item is transactable once it reaches our clubs. Achieving this depends on correct, complete, and consistent item data within our Item Catalog.
The Supplier Item Data Excellence (SIDE) initiative consists of a series of compliance programs designed to ensure high-quality item data, while holding Suppliers accountable for providing complete and correct data at item setup. By promoting and maintaining data accuracy, SIDE seeks to minimize inefficiencies across the supply chain, reduces costly rework, and protects the member shopping experience.
Incorrect UPC Program
The Incorrect UPC Program addresses issues caused by items shipped with inaccurate UPCs. These errors disrupt scanning for members, create supply chain inefficiencies, and drive significant rework for both Home Office and field associates.
Within this program, Sam’s Club will bill suppliers for costs incurred due to shipping product with a UPC that does not match item data records in our Item File.
- First Instance: Supplier receives a warning.
- Subsequent Instances:
- $950.36 billed for Home Office costs per affected item.
- $69.25 billed per club in actively replenished status (A, S, or O).
Example:
- Supplier A creates item #980001 with UPC ending in 0123
- Item #980001 is active (A, S, or O status) in 400 clubs
- Supplier A ships product with UPC ending in 0124
- Supplier will receive a COOP in the amount of $28,650.36
- $950.36 + $27,700 ($69.25 x 400) = $28,650.36
Our sincere hope is that we do not have to bill any suppliers for costs incurred as a result of incorrect UPCs. We simply ask that you provide Sam’s Club with accurate UPCs and ship only items with UPCs that have been recorded within our Item Catalog.
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Incorrect Dimensions & Weights Program
Incorrect data disrupts operations across Fulfillment Centers (FCs), Import Distribution Centers (IDCs), and Dry Goods Distribution Centers (DCs), resulting in inefficiencies, added labor, and unnecessary costs.
Within this program, Sam’s Club will bill Suppliers for costs incurred due to shipping products with dimensions and weights that do not match item data records in our Item Catalog. This applies to inaccurate information throughout the packaging hierarchy, including each item, case, and pallet.
Additionally, Sam’s Club will bill suppliers for costs incurred when shipping products on pallets to any Sam’s Club facility if pallet dimensions are not included in the Item Catalog.
- First Instance: Supplier receives a written warning.
- Subsequent Instances:
- $637.97 billed for Home Office costs per affected item.
- $122.21 billed per impacted location (Sam’s Clubs, FCs, IDCs, and SDCs).
Additional Accountability: For ecommerce shipments that require modified carrier arrangements due to incorrect weights or dimensions, suppliers will be billed as noted above, plus incremental shipping cost defined below (see example 5):
- Incremental Shipping Cost: The difference in cost between the originally planned carrier method and the actual method required.
Example #1 (Domestic Supplier):
- Domestic Supplier A creates item #980001 with the following dimensions and weights.
- Case – (L =12”, W=16”, H=12” | Weight = 10lbs.)
- Item #980001 is received in 300 clubs with the following actual dimensions:
- Case – (L =18”, W=16”, H=12” | Weight = 10lbs.)
- Supplier will receive a COOP in the amount of $37,300.97.
- $637.97 + $36,663 ($122.21 x 300) = $37,300.97
Example #2 (Import Supplier):
- Import Supplier B creates item #980002 with the following estimated dimensions and weights prior to shipment.
- Case – (L =22”, W=16”, H=40” | Weight = 55lbs.)
- Supplier fails to correct estimated values to actual dimensions and/or weight prior to shipment arrival to United States.Item #980001 is received in 4 IDCs and 33 DCs.
- Case – (L=22”, W=16”, H=56” | Weight = 55lbs.)
- Supplier will receive a COOP in the amount of $5,159.75.
- $637.97 + $4,521.77 ($122.21 x 37) = $5,159.75
Example #3:
- Supplier ships ecommerce item to FCs with the following information noted in Sam’s Club item file.
- Each – (L =12”, W=16”, H=12” | Weight = 20lbs.)
- Received in 10 Sam’s Club FC locations with following dimensions:
- Each – (L =12”, W=16”, H=12” | Weight = 30lbs.)
- Sam’s Club ships 20 units via an improper small parcel rate due to the understated weight provided by the supplier.
- Cost incurred for incorrect shipping is $5.00 greater per unit than an accurate small parcel rate would have cost. Supplier will receive
- COOP of o $637.97+$1,222.10 ($122.21 x 10) +$100.00 ($5.00 x 20 - shipping cost difference) = $1,960.07.
Example #4:
- Supplier ships ecommerce item to FCs with the following information noted in Sam’s Club item file.
- Each – (L =12”, W=16”, H=12” | Weight = 250lbs.)
- Received in 10 Sam’s Club FC locations with following dimensions:
- Each – (L =12”, W=16”, H=12” | Weight = 25lbs.)
- Sam’s Club ships 20 units via LTL instead of small parcel due to overstated dimensions and weight provided by supplier.
- Cost incurred for LTL shipping is $50.00 greater per unit than a small parcel. Supplier will receive a COOP in the amount of $2,860.07.
- $637.97 + $1,222.10 ($122.21 x 10) + $1,000.00 ($50.00 x 20 - shipping cost difference for LTL shipping) = $2,860.07
Example #5:
- Supplier ships item to Sam’s Club with the following information noted in Sam’s Club item file.
- Each – (L =12”, W=16”, H=12” | Weight = 250lbs.)
- Received in 2 Sam’s Clubs (club location) with following dimensions:
- Each – (L =12”, W=16”, H=12” | Weight = 25lbs.)
- Sam’s Club ships 20 units via ship from club. Incorrect data generates a faulty shipping recommendation, creating a need for manual intervention and data correction.
- Supplier will receive a COOP in the amount of $882.39.
- $637.97 + $244.42 ($122.21 x 2) = $882.39
As noted above, our sincere hope is that we do not have to bill any supplier for costs incurred as a result of incorrect dimensions and weight data. We simply ask that you provide Sam’s Club with accurate weights and dimensions data within our Item Catalog.
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Expectations for Suppliers
Sam’s Club’s sincere hope is that no supplier will incur billing through SIDE programs. The objective is prevention. To avoid a co-op being issued, suppliers must:
- Carefully review and provide complete and accurate item data during the item setup process.
- Ensure updates remain consistent during item maintenance and/or enrichment.
- Ensure that product packaging reflects the same data submitted into the item catalog.
- Consult provided FAQs and guidance to understand potential error scenarios.
Key Takeaway
The SIDE initiative underscores Sam’s Club’s commitment to data integrity, supply chain efficiency, and member satisfaction. By working together to maintain correct, complete, and consistent item data, suppliers and Sam’s Club can deliver on the shared promise of seamless shopping and exceptional value for members.
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Frequently Asked Questions – Incorrect UPC Program
Q: How can a Supplier avoid these fees?
A: Provide Sam’s Club with accurate UPCs and ship only items with UPCs that have been recorded within our Item File. If you must ship an item with a UPC that is not currently on file, you will need Merchant consent. Merchants will then be responsible for gaining leadership approval and notifying the Sam's Item Lifecycle and Replenishment teams so appropriate steps can be taken to eliminate disruption.
Q: Does this program apply to all items in the Sam’s Club Assortment?
A: Yes. Any item that is shipped through the Sam’s Club supply chain and/or is received in our DCs/Clubs that has a different UPC than what is associated with the item in our item file system will result in a billing in accordance with this new program.
Q: Does this program apply to all Sam’s Club locations, including Clubs, DCs, IDCs and FCs?
A: Yes, this program requirement applies to all Sam’s Club locations.
Q: Is this specific to consumer UPC only?
A: Yes, it is specific to the UPC that is on the selling unit.
Q: Does this program apply to a product that is shipped with a UPC that is included in the Sam’s Club item file but is shipped to an incorrect location (not the location on the PO)?
A: No. The first iteration of the Incorrect UPC program only applies to instances where a product is shipped to a Sam’s Club location with a UPC that is not in the Sam’s Club item file. However, shipping to an incorrect location also causes a burden to Sam’s Club and can similarly create a negative member impact, so we ask that suppliers please ship only the correct UPCs to the locations on the PO.
Q: Does this program apply to under shipment and/or over shipment?
A: No. Shipping more or less than what was requested on the PO will continue to be tracked in accordance with OTIF.
Q: Can a supplier confirm the UPC in the Sam’s Club Item File for items in their assortment?
A: Yes, Suppliers can verify the UPC and correct locations for that UPC by accessing their item in MADRID, Sam’s Club Item Link or Item Data Management (IDM).
Q: How will a supplier be notified of charges?
A: Suppliers will receive one warning notification after the first instance per six- digit vendor number via email. Notification of subsequent violations will come directly from our CO-OP application as a Supplier Penalty Error-Other Allowance.
Q: What method will be used for billing a supplier that is not compliant with this program?
A: As noted in our communication to suppliers on 01/11/23, suppliers will be billed via Sam’s Club CO-OP application. The fee will be denoted as a Supplier Penalty Error Other allowance within the CO-OP application.
Q: Can I dispute the charges via the Disputes portal?
A: No. The disputes portal is specifically for auto deduction claims only. Any concerns regarding UPC Program: Incorrect UPCs charges should not be submitted through this portal. UPC Program: Incorrect UPCs charges will be filed via CO-OP and require a supplier's signature prior to the deduction being processed. Each CO-OP will include documentation regarding the findings for the instance.
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Frequently Asked Questions – Incorrect Weights and Dimension Program
Q: What is the Sam’s Club Incorrect Dimensions and Weights Program and why has it been implemented?
A: Effective March 1, 2024, Sam’s Club began billing suppliers for costs incurred by Sam’s Club due to suppliers shipping products when Dimensions and Weights do not match item data records in our Item file.
Inaccurate dimensions and weights contribute to labor and facility inefficiencies within our supply chain networks, specifically affecting our Fulfillment Centers (FCs), Import Distribution Centers (IDCs), and Dry Goods Distribution Centers (DCs). Furthermore, such inaccuracies adversely influence the Member experience, as improper shipping methods are employed, leading to the delivery of damaged items to our Members.
Incorrect weight and dimension information necessitates considerable research and rework by associates at the Home Office and in the field. This issue may also lead to potential loss of current and future revenue due to unsatisfactory Member experiences and increased shipping costs caused by incorrect shipping modalities.
Q: How are Incorrect Dimensions and Weights defined?
A: Incorrect dimensions and weights refer to the discrepancies between the actual measurements and weights of items moving through the Sam's Club Supply Chain and the data provided by the supplier in the Sam’s Club item file system.
Q: Does Sam’s Club require shipping dimensions or assembly dimensions?
A: Sam's Club requires shipping dimensions for all item levels (pallet, case, sellable unit) across the supply chain network, rather than dimensions based on assembly.
Q: Which weight dimension attributes are considered in the application of this program?
A: While incorrect gross weight attribution information creates the most significant issues in our supply chain, we ask that suppliers provide correct information in both gross and net weight attributes within our item file.
Q: Does this program apply to all Sam’s Club locations, including Clubs, DCs, IDCs and FCs?
A: Yes, this program requirement applies to all Sam’s Club locations.
Q: Does this program apply to all direct to member deliveries?
A: Yes, as these items flow through our Supply Chain.
Q: Does this program apply to Import Items?
A: Yes. It is the responsibility of our international suppliers to rectify any inaccuracies in the estimated dimensions of items before they arrive in the United States. If items with incorrect dimensions are received at an import distribution center, they are subject to the cost recovery adjustments specified in this program.
Q: Can a supplier confirm the dimensions and weights in the Sam’s Club Item File for items in their assortment?
A: Yes, before shipping, suppliers can confirm and proactively adjust their items by accessing them through Madrid 2.0 (verification without updating), Sam's Club Item Link, or Item Data Management (IDM).
Q: Is there a tolerance threshold for dimension or weight
A: Sam's Club permits a 10% tolerance for dimensions or weights; exceeding this limit is considered incorrect and may incur fees.
Q: How will a supplier be notified of charges?
A: Suppliers will receive one warning notification after the first instance per six- digit vendor number via email. Notification of subsequent violations will come directly from our CO-OP application.
Q: What method will be used for billing a supplier that is not compliant with this program?
A: As noted in our communication to suppliers on January 11, 2024, suppliers will be billed via Sam’s Club CO-OP application.
Q: How can a Supplier avoid these fees?
A: Provide Sam’s Club with correct Dimensions and Weights for all ways a product can be configured during item set up and maintenance activities.
Q: Can I dispute the charges via the Disputes portal?
A: No, the disputes portal is exclusively for auto deduction claims. Concerns related to Incorrect Dimensions & Weight charges should not be submitted through this portal. Instead, these charges will be addressed through the CO-OP process, which necessitates a supplier's signature before processing the deduction. Each CO-OP will be accompanied by documentation detailing the findings for that particular case.
Q: I ship to Sam’s Club on a Pallet, but Sam’s Club sales my product at the “each” level, do I need to build a pallet in my hierarchy?
A: Yes. Any item shipped to Sam’s Club on a Pallet must have a Pallet Hierarchy in our item data file (providing this information only for the each selling unit is not sufficient).