What is MABD for Walmart?
In the era of same-day-delivery and big box retailer renovations, arrival date is more important than ever. “MABD” is the hot new buzzword spearheaded by retailers like Walmart, but what is it exactly?
What is Must Arrive By Date (MABD)?
Simply put, must arrive by date (MABD) is the day merchandise is due to the distribution center or other facility, plus the three previous days. It’s also sometimes called the “MABD Window.” If products aren’t received in that timeframe, suppliers face a fee of 3% of the cost of goods. Walmart is famous for using MABD, but many other retailers including Target use this system as well.
The purpose of this system is to allow big box stores to reduce clutter and cost. Stores like Walmart are moving away from a warehousing model of keeping excess inventory in back stock. Instead, they want items to arrive as soon as they are needed so they can be restocked immediately.
How Do I Stay Compliant with MABD?
To be fully compliant with MABD, manufacturers and shippers must ensure their items arrive to the distribution facility in the MABD Window, and that at least 90 percent of merchandises are received. For example, if the goods are due November 15, then they must arrive to the warehouse on November 12, November 13, November 14 or November 15. Your goods must also be secured and undamaged to fit within that 90% requirement.
However, there are some allowances within MABD. Some items are except from this requirement. That includes goods arriving by air freight, fresh grocery items, small packages and products for Sam’s Club (source).
Staying compliant with MABD poses a challenge for many suppliers, and is even trickier when shipping by LTL Truckload since LTL shipping includes more frequent stops that can delay a delivery. The best way to stay MABD compliant is to use a supply chain management company that is experienced in MABD compliance. MVP Logistics provides traditional and e-Commerce order fulfillment with integration capabilities for Amazon, Walmart, Target, Overstock, Wayfair and other major retailers.
What option is best for you depends on your shipment, budget and timeline. Contact us today to request a quote and find the option that’s right for you.
MVP Logistics is your logistics partner for supply chain project management, logistics, warehousing and fulfillment, LTL and other supply chain needs. Both our Minneapolis and Houston warehouses provides local, national and international shipping services. Find your solution today.