Table of contents
Suppliers shipping merchandise to Walmart may need to demonstrate how they secure manufacturing, packing, storage and cargo loading. Not every facility must undergo a separate Walmart SCS audit. Walmart recognises several ways of meeting its supply chain security requirements, depending on the facility's circumstances and the accepted programme.
This guide explains the scope of Walmart Supply Chain Security (SCS), five accepted options, audit steps, security records, Walmart's color ratings and practical preparation. TTS Cert helps suppliers identify the right route and get ready for an independent assessment.
1. What Is Walmart SCS? Is It a Certification?
Walmart Supply Chain Security (SCS) is Walmart's programme for managing cargo security risks in relevant supplier operations. It forms part of the security expectations under Walmart's Standards for Suppliers, particularly for goods for which Walmart is the importer of record.
Walmart sets the programme expectations and reviews the evidence submitted by suppliers. Eligible independent audit firms or accepted third-party programmes perform assessments under the applicable option. Walmart reviews valid audit reports and assigns facility ratings.
Walmart SCS is not a stand-alone certification scheme that issues a universal “Walmart SCS certificate” to every factory. A supplier may instead rely on an eligible certification or membership status under a separate accepted scheme, such as WRAP or CTPAT, where the specific conditions are met.
The primary reference is Walmart's official Supply Chain Security page. Suppliers should verify requirements for their disclosed facilities rather than assume the same route applies to all factories.
2. Which Suppliers and Facilities Are Subject to Walmart SCS?
The first step is to establish the actual facility scope. For direct-import goods where Walmart is the importer of record, Walmart's disclosure rules may cover not only production facilities but also carton-packing locations, intermediary warehouses and container-loading sites.
| Facility type | What to confirm |
|---|---|
| Manufacturing facility | Whether it produces merchandise within the Walmart import scope |
| Carton-packing location | Whether goods are packed into cartons at the site |
| Warehouse or intermediate location | Whether it lies between carton packing and container loading |
| Container-loading point | Who controls access, loading, seals and cargo handover |
| Subcontractor or new site | Whether it has been properly disclosed and assigned responsibility |
Facility disclosure may take place through Retail Link or another route specified by Walmart. Do not assume that all Walmart suppliers have identical audit obligations. The import arrangement, disclosed site, risk category and Walmart's instructions determine what is required.
Before booking an audit, confirm the disclosed facility identifier, which sites must submit evidence and the applicable due date. See Walmart's facility disclosure guidance.
3. Five Accepted Ways to Meet Walmart SCS Requirements
Walmart publicly describes five options for demonstrating compliance with its supply chain security expectations. Selecting the correct one can prevent unnecessary duplicate audits.
| Option | How it works | Key eligibility consideration |
|---|---|---|
| 1. Walmart SCS audit | An eligible audit firm conducts the Walmart-defined SCS assessment | Appropriate when an alternative accepted route is unavailable or unsuitable |
| 2. Approved third-party programme | An audit or certification under an accepted programme, including SCAN or WRAP where applicable | SCAN has membership requirements; WRAP applies to sewn products and related eligible scope |
| 3. Small supplier programme | A modified programme for eligible smaller suppliers | Revenue thresholds and high-risk country restrictions apply |
| 4. CTPAT Tier 1/2/3 | Qualifying CTPAT-certified suppliers or facilities demonstrate their status | Not every factory outside the US can obtain CTPAT membership directly |
| 5. Accepted AEO or waiver | Walmart-accepted AEO arrangements or other approved waivers | An arbitrary AEO certificate does not automatically qualify |
For the small supplier option operated by Intertek, Walmart states an eligibility threshold of less than USD 3 million in annual global supplier revenue, or less than USD 350,000 in annual worldwide sales to Walmart Inc. Facilities in a high-risk country category are excluded from the approved small supplier programme. These are screening criteria; final eligibility must still be established under Walmart's rules.
Sewn-product suppliers already holding WRAP certification should check whether it meets their specific Walmart SCS obligations before arranging an additional assessment. Factories receiving CTPAT-related requests can also consult our CTPAT security audit guide.
Use Walmart's five audit options and list of approved audit programmes as the authoritative starting points.
4. Key Security Controls Reviewed in SCS Assessments
The underlying purpose is to reduce the risk of cargo tampering, theft and undeclared goods entering shipments. Walmart's approach draws on relevant supply chain security measures, including the US CTPAT Minimum Security Criteria.
| Control area | Operational evidence to review |
|---|---|
| Physical security and restricted areas | Fences, gates, locks, lighting, CCTV and access restrictions around cargo operations |
| Access control | Records for employees, visitors, contractors and drivers; badges and challenge procedures |
| Container and conveyance security | Actual pre-loading inspections and responses to suspicious conditions |
| Seal management | Secure storage, issuance, application, verification and reconciliation to shipping records |
| Cargo and document integrity | Orders, carton counts, staging, loading checks, transfer records and discrepancy handling |
| Personnel, partners and incident response | Training, assigned responsibilities, carrier oversight and incident investigations |
| Information controls | Protection of relevant shipping records, accounts and operational systems |
CCTV installation alone is not enough: the facility needs to demonstrate that surveillance works, covers relevant areas and supports incident handling. Likewise, container inspection forms should record real inspections, not be completed retrospectively for an audit.
Existing CTPAT-style controls can help with SCS readiness, but facilities must check the applicable Walmart or accepted-programme audit protocol rather than automatically treating every CTPAT criterion as an identical SCS audit item.
5. Walmart SCS Audit Process: From Disclosure to Submission
For a facility required to submit an audit, the process typically follows six stages. Details vary by the selected option.
Confirm disclosed facilities. Verify facility identifiers, responsible contacts and due dates.
Select an eligible route. Check the five options and applicable programme requirements.
Arrange the assessment. Confirm the eligible firm, scope, schedule, fees and reporting arrangements.
Prepare and undergo the audit. Provide records, demonstrate operating controls and address auditor questions.
Submit the report to Walmart. The supplier is responsible for submitting a valid report through the required channel and within the specified deadline.
Review the result and remediate. Walmart reviews the submission, communicates the facility's rating or status and sets further expectations as applicable.
An audit firm does not independently assign Walmart's final facility color rating. Walmart reviews eligible submissions and informs suppliers of the result. Maintain evidence of corrective actions and any further report submissions.
6. Walmart SCS Color Ratings: Green, Yellow, Orange and Red
Walmart uses four color ratings to reflect findings and its review of facility compliance. They are facility assessment outcomes, not four certificate grades.
| Rating | General meaning | Practical implication |
|---|---|---|
| Green | High level of compliance | Generally meets prequalification criteria when the facility is active |
| Yellow | General compliance | Findings may still need remediation and monitoring |
| Orange | More serious security violations | Priority remediation; insufficient for initial prequalification of new facilities in high-risk Category 3 countries |
| Red | Serious violations that may lead to facility inactivation | Often prevents production for Walmart until applicable reactivation requirements are met |
An Orange rating is not a universal approval to start production, and a Red outcome should never be treated as a mere paperwork issue. Facility status, country risk category and Walmart's instructions govern the permitted next steps. Multiple consecutive Orange ratings may lead to Red.
7. When Is a Walmart SCS Re-audit Required?
There is no single annual re-audit rule for all facilities. Walmart's audit and assessment guidance links the next audit date to the facility's color rating, country risk category and whether prequalification is required.
For illustration, its guidance indicates that Green facilities in Category 2 may have a three-year follow-up cycle, compared with two years in Category 3. Yellow facilities may face two years in Category 2 and one year in Category 3. Orange facilities in Category 3 may need a follow-up after six months. Category 1 uses annual sample selection rather than a recurring audit for every facility.
These examples do not establish Vietnam's current risk category. Suppliers must check Walmart's latest risk-category list and the actual due date communicated for their facility. Walmart may inspect or audit when necessary outside the routine schedule.
Consult the official SCS Audit and Assessment Guidance and SCS resources.
8. Walmart SCS Audit Checklist: Documents and Site Readiness
Useful audit evidence demonstrates that security controls operate consistently, rather than merely that written procedures exist. Allocate preparation tasks across functions.
| Function | Priority evidence |
|---|---|
| Management / security | Security policy, risk assessment, responsibilities, incident procedures and internal reviews |
| Guards / administration | Visitor and vehicle logs, badge and key controls, restricted-area rules and site plan |
| Warehouse / shipping | Container inspections, seal registers, loading records, cargo reconciliation and dispatch evidence |
| Engineering / IT | CCTV coverage diagram, maintenance records, system testing and relevant access management |
| HR / training | Assigned duties, awareness training and lawful controls for sensitive positions |
| Purchasing / logistics | Carrier and third-party registers, supplier screening and relevant response arrangements |
| Compliance | Previous audit findings, corrective action plans and evidence of closure |
Three practical checks are particularly useful: reconcile seal logs to shipment records; trace one consignment from storage to container loading; and test the response to an irregular event, such as an unauthorised person entering the loading zone or a suspicious seal.
Where gaps exist, improve the actual operation. Do not backdate documents or manipulate records to make the facility appear compliant.
9. Who Can Conduct an SCS Audit and How Are Results Verified?
Walmart owns the SCS programme and reviews facility compliance. Eligible independent audit firms conduct Walmart SCS audits under Walmart's rules; other accepted programmes follow their own approval and eligibility arrangements. A company that performs general CTPAT consulting or warehouse audits is not automatically authorised to carry out an official Walmart SCS assessment.
Check the programme and result in three steps:
Confirm the acceptable route using Walmart's auditing guidance, approved programmes and supplier-specific instructions.
Verify the programme or audit provider by checking its eligibility, product scope, audit approach and reporting procedure. WRAP and SCAN may require separate checks within their own systems.
Confirm Walmart's outcome against the facility identifier, report submission, acceptance and final color rating communicated by Walmart through the applicable supplier channel.
There is no general public “Walmart SCS certificate register” for all factories comparable to the database of a stand-alone certification scheme. An audit report PDF or badge does not by itself establish that Walmart accepted a facility.
10. Audit Timing, Costs and Common Findings
Preparation time depends on the facility scope, number of sites, record maturity, security infrastructure and audit-firm availability. No single timetable accurately describes every Walmart SCS case.
Separate the budget into programme/audit fees, consulting and training (if used), and security upgrades. Fees vary by the accepted route. TTS Cert does not publish a universal Walmart SCS certification fee because SCS is not a single conventional certificate product.
Common security and preparation gaps include:
Inconsistent access restrictions around loading and cargo areas.
Seal logs that cannot be reconciled with shipment paperwork.
Container inspections that are not actually performed or evidenced.
CCTV blind spots or failures without documented response and maintenance.
Inadequate controls over carriers, rented warehouses or subcontractors.
Missed audit deadlines and incomplete follow-up of corrective actions.
A targeted gap review should precede significant equipment expenditure, especially where an accepted alternative route may already be available.
11. Walmart SCS vs CTPAT, SCAN, WRAP and TAPA FSR
These programmes address overlapping security concerns, but their owners, scope and acceptance mechanisms are not interchangeable.
| Programme | Main focus | Relationship to Walmart SCS |
|---|---|---|
| Walmart SCS | Walmart's supply chain security requirements for in-scope suppliers and facilities | Walmart reviews acceptable audit evidence and assigns ratings |
| CTPAT | U.S. Customs and Border Protection supply chain security partnership | Qualifying CTPAT Tier 1/2/3 status is one accepted option |
| SCAN | Shared supply chain security audit programme with membership requirements | Listed by Walmart as an approved third-party audit programme |
| WRAP | Sewn-products social compliance certification, including customs and security principles | Accepted by Walmart within its applicable scope |
| TAPA FSR | Warehouse/facility security certification at Levels A/B/C | Not automatically a Walmart SCS substitute without Walmart acceptance |
Vietnamese factories may undergo customer-requested CTPAT-based security audits without becoming direct CBP CTPAT members. Facilities focused on high-value warehousing can consider TAPA FSR 2026, which serves a different certification purpose.
Decision rule: Verify the buyer's accepted programme, the required evidence, the facility identifiers and who will validate the result before paying for multiple similar assessments.
12. Walmart SCS Audit Consulting by TTS Cert
TTS Cert helps suppliers, warehouses and factories prepare for Walmart's supply chain security requirements using the appropriate accepted route, rather than assuming that every case needs a separate Walmart SCS audit.
| Phase | Consulting support |
|---|---|
| 1. Requirements and gap review | Confirm customer instructions, facility scope and accepted routes; assess existing security controls and priorities |
| 2. Implementation and training | Support procedures and operating evidence for access, container inspections, seals, cargo security, transport and staff awareness |
| 3. Audit preparation and follow-up | Review evidence, coordinate readiness with the eligible audit firm and support corrective-action follow-up |
TTS Cert is a consultancy, not Walmart and not automatically a Walmart-appointed audit firm. TTS Cert does not issue a Walmart SCS certificate, decide facility color ratings or guarantee Walmart acceptance without the official process.
Frequently asked questions
Is Walmart SCS required by Vietnamese law? It is not a general statutory operating licence. Requirements arise where a supplier and facility fall within Walmart's programme and purchasing conditions.
Can WRAP replace a separate Walmart security audit? Potentially, if the existing certification and facility meet Walmart's precise programme and product-scope acceptance rules.
Can a Vietnamese factory simply obtain CTPAT certification to avoid SCS? Not automatically. CTPAT membership eligibility is restricted by category and legal location; Vietnamese factories commonly face customer-requested CTPAT-based audits instead.
Can the facility start producing immediately after an audit? Not automatically. The report must satisfy Walmart's requirements, and the facility's final rating and active/prequalification status matter.
For suppliers newly receiving Walmart SCS requirements, the most cost-effective starting point is to confirm the accepted route before planning the audit.
