Walmart has unveiled a new programme designed to make it easier for suppliers to move goods through its network, as the retailer continues to lean on supply chain technology and distribution investment to improve availability on shelves.
According to a company announcement, the Prepaid Consolidation Program will allow suppliers to ship under a single national purchase order to one location, where products are combined before being sent on to Walmart’s 42 regional distribution...
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centres. The aim is to reduce the number of separate inbound shipments, cut complexity for vendors and speed up the flow of inventory into stores.
Mike Gray, senior vice-president of supply chain at Walmart US, said the company was focused on simplifying the process for suppliers while keeping products in stock for customers. He said strengthening first-mile capabilities would help reduce complexity and keep goods moving.
The programme is intended for suppliers that already operate on prepaid freight terms. They will be able to work through Walmart or approved third-party logistics providers, including C.H. Robinson, Hub Group and RJW Logistics, while paying a set per-case rate that covers handling at consolidation centres and outbound transport to Walmart distribution facilities.
Walmart said the model is designed to improve efficiency, lower costs and increase speed to shelf, while providing region-specific pricing and avoiding extra mark-ups on services performed by participating providers.
The rollout will be phased, with participation prioritised according to supplier volume and available capacity. Suppliers interested in taking part have been directed to contact Walmart or one of the participating logistics providers.
The move fits into a broader effort by Walmart to modernise its network. In July 2024, the company said it was investing in five high-tech perishable distribution centres and expanding four existing sites with additional automation, as it sought a more connected and scalable grocery supply chain. Earlier that year, Walmart Commerce Technologies launched an AI-powered logistics product aimed at improving middle-mile efficiency, reducing emissions and helping businesses keep products available where customers want them.
Together, the initiatives point to a retailer increasingly using infrastructure, automation and software to tighten control over the path goods take from supplier to shelf.
Source: Noah Wire Services
