Walmart Open Call: Your Deduction Risk Playbook
- The HRG Team
- Oct 8
- 4 min read
Open Call is buzzing—a two-day sprint (Oct. 7–8) with nearly 600 entrepreneurs, ~750 pitch meetings, and a lot of hopeful “golden ticket” selfies around Walmart’s new home office campus in Bentonville. It’s a serious platform to reach Walmart, Sam’s Club, and Walmart.com.
Why does that matter for a deduction-recovery firm like HRG? Because the real test starts after the handshake. The moment you set up items, ship first POs, run first promos, or flip on Marketplace, you’re inside the retailer’s compliance machinery. That’s where avoidable errors become very real dollars.
What buyers want (and what it means for deductions)
Buyers here are signaling three things: (1) differentiated value, (2) supply-chain readiness, and (3) multi-channel paths (stores, clubs, Walmart.com/Marketplace). Translation: if you can’t ship on time, in full, with retail-ready packaging and clean data, you’re creating your own chargebacks.
Also, context matters: Walmart’s long-running U.S. manufacturing push is active policy—an added $350B in U.S.-supporting purchases by 2030 (BCG estimates ~750,000 jobs). If your “made/grown/assembled in the U.S.” story is real, tell it precisely.
The first 120 days: where most new-supplier deductions happen
Here’s the short list we see trip up newcomers (and some veterans):
OTIF misses (On-Time, In-Full) → Walmart fines of 3% of COGS per non-compliant case; current targets commonly referenced: 90% On-Time (prepaid), 95% In-Full, and 98% collect-ready. Small misses add up fast.
SQEP defects (Supplier Quality Excellence Program) → barcode placement, label format, pallet/case integrity, PO accuracy. Published examples cite $200 per PO + $1 per impacted case, and fees for ASN attachments.
ASN/EDI mismatches → quantities, UOM, and timing out of sync with receiving; deductions often arrive before you can blink.
Price/promo math → list cost, allowances, or deal dates don’t match the invoice or agreement; expect disputes and, later, post-audit claims.
Marketplace/eComm packaging → e-commerce FC rules differ from DC rules; non-compliance triggers SQEP-style charges.
“But it’s just a pilot…” — Not to your P&L
A fictional—but painfully realistic—snapshot:A Texas sauce startup lands a 200-store pilot and Walmart.com go-live. Week 1, their outer case barcode is ⅜″ off spec. Week 3, ASNs are late by a few hours as the 3PL learns new cutoffs. Week 5, a collect order misses routing, nudging MABD. Result: SQEP defects on two POs, an OTIF shortfall, and a handful of shortage claims tied to receiving variances. Net: $27,400 in deductions in the first quarter—most of it preventable. (Fictional example for illustration.)
The part nobody warns you about: post-audit
Even if your first checks look clean, retailer post-audits review historical transactions and agreements months (sometimes years) later. Claims often reference pricing deltas, allowances, freight, and logistics. Many retailers look back ~24 months; we routinely see suppliers surprised long after a fiscal year closes.
The stakes, in numbers
Industry sources estimate that shortage-related leakage accounts for 0.5%–2% of gross sales, while broader deduction/chargeback exposure can reach 5%–15% of revenue in specific categories if left unmanaged. And a single OTIF cycle can compound with SQEP and shortage claims in the same month.
Also: last year’s Open Call saw 92 “golden tickets.” Wins happen—just make sure you keep the margin you win.
Your 20-minute pitch is great. Here’s the 90-day play.
1) Item + data integrity (pre-PO). Validate GTIN/GS1, UOM, TI/HI, case dims/weight, inner/outer pack, imagery, and cost/allowance tables. Lock a single source of truth your team (and 3PL) will actually use.
2) OTIF + routing discipline. Map prepaid vs. collect workflows; set internal MABD buffers; automate routing requests; track ASN timeliness like a KPI. (Remember the 3% math.)
3) SQEP proofing. Run a packaging/label “red team” check: barcode quiet zones, label placement, pallet overhang, corner protection, and case strength relative to stack height.
4) Shortage defense kit. Capture BOLs, PROs, seal logs, in/out weights, case-count photos at load, and scan logs at delivery. You’ll need them for disputes.
5) Price/promo governance. Centralize deal sheets with effective dates, caps, and accrual logic; reconcile them with the invoice before it is sent out. This is where many post-audit claims originate.
6) Marketplace path (if “not yet” today). Marketplace and Walmart.com remain legit on-ramps. Standards still apply—especially those related to packaging and data accuracy—but the learning curve can be staged.
If you didn’t get a golden ticket (today)
Open Call is a platform, not a moment. Follow up with clean notes, new proof points inside 30–60 days, and a pragmatic pilot plan. (Walmart’s own materials encourage pathways that include Marketplace and Walmart.com while you build retail proof.)
Key takeaways
Open Call is real opportunity—on a tight clock. 600+ founders, 750 meetings, and national visibility, right now in Bentonville.
Compliance is part of the sale. OTIF (3%), SQEP, price/promo alignment, and clean ASNs determine whether you keep the dollars you win.
The audit tail is long. Post-audit claims can surface ~24 months later; document everything and create a playbook now.
The U.S.-jobs story matters—so get it right. Walmart’s $350B initiative and >⅔ U.S. product spend frame the conversation this week.
Where HRG fits (no pressure): If you’re pitching—or you just left a pitch—we can run a Deduction Risk Analysis – no risk! It’s practical, human, and built to help your team keep more of every PO.
P.S. If you’re reading this in Bentonville—welcome to NWA. Soak it in. Then protect your margin.
