Walmart's Strict Delivery Deadlines

Walmart suppliers will now face stiffer penalties if they repeatedly miss the retailer's newly designated four-day delivery window.

As of February 1, Walmart suppliers will face stiff penalties if their merchandise does not reach Walmart warehouses - its U.S. distribution centers - within the newly designated four-day delivery window, Reuters reports.

"Those suppliers which have an ongoing record of missing this designated four-day delivery window, they'll have 3 percent of the cost of goods deducted from the invoices for each delivery that doesn't arrive on time - whether it's too early or late," says Walmart's Dan Fogelman. "This helps ensure the steady flow of freight through the system so that stores are stocked appropriately. At the same time you're not warehousing a lot of things and handling them at multiple times."

Walmart calls its newly enforced deadline MABD, or "must arrive by date." Fogelman adds that the penalties associated with missed delivery dates are comparable to late charges imposed by its competitors.

For more on Walmart's delivery deadlines, click here.