Walmart is rolling out changes to its supply chain based on a new strategy call “Prepaid Consolidation,” which the retailer said will help get products to shelves faster by simplifying inbound supplier logistics and building a more connected, scalable, tech-enabled process delivering improved service and lower costs.
Under the new program, suppliers pay a transparent, price-per-case rate. It will cover handling at the automated consolidation center and outbound transportation to Walmart RDCs, the company noted. Suppliers working with participating providers will access region-specific pricing through Walmart’s published rate card. Supplires aren’t subject to additional markups applied by participating providers to Walmart-supported services.
As part of the strategy, Walmart is expanding the company’s first mile capabilities for prepaid suppliers by using its national supply chain network to create a scalable way to merge shipments, creating greater transportation efficiency. Suppliers send products under a single national purchase order to one location. Walmart then combines the inventory and distributes it across the company’s 42 regional distribution centers.
In practice, the “Prepaid Consolidation Program” will make operations easier for suppliers while still giving them flexibility, according to Walmart. Because Walmart manages the process, suppliers don’t need to change their prepaid freight terms, the company added. Instead, they can move their shipments directly through Walmart or work with company-approved third-party logistics providers, including C.H. Robinson, Hub Group and RJW Logistics.
Suppliers benefit from simplified shipping, with one National PO and one destination, along with transparent pricing and access to Walmart’s national distribution network, Walmart indicated. The process is designed to improve efficiency without requiring changes to prepaid freight terms, Walmart asserted, and it can reduce total supply chain cost while improving speed to shelf.
By consolidating inbound shipments and allocating inventory across its RDCs, Walmart maintained it can improve flow consistency and reduces variability, enhancing replenishment precision and supporting stronger in-stock performance across stores.
Walmart said the “Prepaid Consolidation Program” will scale in phases with participation priority set based on volume alignment and capacity expansion.
“We’re focused on making our supply chain simpler, faster and more efficient for suppliers, while also keeping products in stock for our customers,” said Mike Gray, Walmart U.S. senior vice president of supply chain. “By strengthening our first-mile capabilities, we’re reducing complexity and keeping goods moving, so we can deliver even more value every day.”
