Automation Eligibility & Entitlement FAQs
At Walmart, we want to be America’s favorite place to shop. To do that, our customers must be able to find the products they want at the low price they expect and deliver at the speed they need. However, packaging defects slow down deliveries and reduce product availability.
Why This Matters
Supply Chain Automation strengthens Walmart’s ability to meet customer expectations with greater speed, accuracy, and reliability. By boosting operational efficiency and expanding supply chain capacity, we enable faster speed to shelf, improved on-shelf availability, and more accurate flow of product to our stores. Together, these initiatives accelerate speed to customers, lower costs, and support sustainable business growth.
The Challenge
Automation Entitlement is the percentage of cases eligible to successfully flow through automation. When cases flow through automation, our distribution centers can ship them on store-friendly pallets, and your product makes it to the customer faster.
Unfortunately, we frequently see packages that do not let items flow through automation due to quality defects (e.g., crushed packaging, insufficient glue/tape), requiring manual handling and slowing deliveries. By addressing the top 6 packaging defects, we can significantly improve Automation Entitlement, bringing your items to our customers faster.
Top 6 defects impacting automation:
- Crushed Packaging
- Insufficient Glue or Tape
- Missing Bottom Tray
- Loose Wrap
- Non-Compliant Tier Sheets
- Overpacked/Bulging Case
FAQs
1. What items are eligible for automation?
Items across all networks are eligible to flow through automation if they are within the case dimension and weight thresholds.
- Ambient Automation
- Minimum Case Dimensions: 6.4" L x 5.0" W x 2.0" H (minimum 1 lb.)
- Maximum Case Dimensions: 36" L x 24" W x 16" H (maximum 50 lbs.)
- Perishable Automation
- Minimum Case Dimensions: 6" L x 4.0" W x 2.0" H (minimum 1 lb.)
- Maximum Case Dimensions: 26" L x 20" W x 19" H (maximum 50 lbs.)
2. What prevents cases flowing through automation if they are eligible?
Cases that meet eligibility requirements but are non-compliant with Secondary Supply Chain Standards must be processed manually. Automation success is significantly reduced by the following factors:
- Packaging Quality: Cases that do not remain fully intact during normal handling cannot be processed by automation, resulting in potential product damage and product delays.
- Pallet Quality: Unitized product that is non-compliant with published dimensions or pallet building requirements cannot be processed via automation, resulting in increased handling and product delays.
- Barcode Quality: Cases that do not display scannable barcodes compliant with quantity, format, and GTIN accuracy requirements cannot be received via automated scanning, resulting in potential receiving errors and product delays.
3. What defects should be prioritized?
By focusing on the following top 6 defects, the volume of items and cases successfully flowing through automation increases substantially:
- Insufficient Glue/Tape
- Loose Wrap
- Non-Compliant Tier Sheet
- Crushed Packaging
- Missing Bottom Tray
- Overpacking/Bulging
4. How are defective items identified & communicated?
Identify items currently failing or at risk of failing automation by reviewing the Automation Entitlement Item List and available SQEP data. Suppliers can identify additional at-risk items by proactively reviewing other items in their assortment that share the same packaging types or production processes as those with known defects.
- Automation Entitlement Item List: Items currently failing automation for a top 6 defect will be emailed to key replenishment contacts identified through collaboration with the supporting Replenishment Inventory Solutions Manager by 01/12/2026.
- SQEP: Packaging defects captured through SQEP inspections provide early visibility into potential automation failures.
- Assortment Review: Suppliers should internally identify additional at-risk items by reviewing those with similar packaging or production processes that are likely to have the same risk.
- Packaging: Items with similar structure, corrugate, and design.
- Production Processes: Items with shared production lines, plants, equipment, and operational exposure.
5. Are all defective items on the Automation Entitlement Item List or in SQEP?
No. The Automation Entitlement Item List includes items that are currently failing in facilities where automation is deployed and/or high-priority items that require remediation to drive large-scale automation success, whether in current or future facilities. Additionally, SQEP data is based on random sampling of both inbound loads and items within those loads.
Because automation is not yet active at all sites and SQEP relies on randomized, multi-level sample inspections, an exhaustive list of all defective items is not currently available. This is why an Assortment Review is essential to identify and address at-risk items across the entire portfolio.
6. How often will defective item lists be updated?
The Automation Entitlement Item List is a one-time report. However, new items will be added to the SQEP Dashboard whenever a defect is identified during a random inspection.
Dynamic automation defect data is planned for integration into the SQEP Dashboard beginning Q3 2026. Details regarding the timing of this update will be shared as they become available.
In the interim, if a new, high-impacting packaging defect is identified, you may be contacted for review and response.
7. What is an Automation Entitlement (AE) Score?
The AE Score is a 6‑digit supplier‑level metric that represents the percentage of a supplier’s volume that can successfully flow through Walmart’s automated supply chain.
8. How is the Automation Entitlement (AE) Score calculated?
The AE Score measures the percentage of case volume that can successfully flow through automation without being slowed down by defects.
AE Score = Defect Free Item Volume/Total Item Volume
9. Why is the Automation Entitlement (AE) Score important?
A higher AE Score means more of the supplier’s volume can move through automation safely and efficiently, enabling faster speed to shelf, improved on‑shelf availability and a more accurate flow of product to our stores.
10. What are next steps?
Review identified defective items to determine the root cause, develop a targeted plan of action, and establish implementation timelines.
To provide visibility into progress toward resolution, a status update for each item must be emailed to Logpkg@wal-mart.com by the 15th of every month, beginning 02/15/2026.
At a minimum, one update per month is required; however, interim updates are expected, and additional updates may be sent at any time to communicate progress and advise when corrections have been implemented.
Detailed instructions regarding the item list updates, including status definitions, will be emailed following the Automation Entitlement Webinar.
11. How can an item be tested to ensure automation success?
The International Safe Transit Association (ISTA) provides a variety of packaging integrity tests that simulate the movement of items through the supply chain. Successfully passing ISTA testing serves as a leading indicator that a case will flow reliably through automated systems.
12. Who is the contact for questions?
For any questions regarding packaging design changes, requirements or the Automation Entitlement Item List, please contact the Logistics Packaging Team at Logpkg@wal-mart.com.
Resources
Supply Chain Standards
Automation Eligibility
- Automation Entitlement Training Webinar (Coming Soon)
SQEP Tools
Learn More