Walmart launches new supply chain strategy: prepaid consolidation

 Walmart is launching a new initiative designed to help get products to shelves and customers faster by simplifying inbound supplier logistics.

The retail giant said its new “prepaid consolidation” program  is built to make things easier for suppliers while still giving them flexibility. The program expands Walmart’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. 

Instead of shipping products to multiple destinations with multiple purchase orders, prepaid suppliers can send goods under one national purchase order to one location. From there, Walmart combines the inventory and distributes it across its 42 regional distribution centers (RDCs).

“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, senior VP of supply chain at Walmart U.S. “By strengthening our first-mile capabilities, we’re reducing complexity and keeping goods moving, so we can deliver even more value every day.” 

Through the process, suppliers pay a transparent, price-per-case rate, covering case handling at the automated consolidation center (ACC) and outbound transportation to Walmart RDCs. Suppliers working with participating providers will access region-specific pricing through Walmart’s published rate card, with no additional markups applied by participating providers to services performed by Walmart.

 Suppliers benefit from simplified shipping — one national PO, one destination — along with transparent pricing and access to Walmart’s national distribution network, the retailer explained. The model improves efficiency without requiring changes to prepaid freight terms, and it can reduce total cost while improving speed to shelf. 

By consolidating inbound shipments and allocating inventory across Walmart’s RDCs, the program improves flow consistency and reduces variability. This enhances replenishment precision and supports stronger in-stock performance across stores, noted Walmart.

The new program will scale in phases. Participation will be prioritized based on volume alignment and capacity expansion.

https://chainstoreage.com/walmart-launches-new-supply-chain-strategy-prepaid-consolidation