Walmart launches prepaid consolidation program to streamline supplier logistics

Walmart says it is rolling out a new supply chain strategy aimed at simplifying inbound freight and improving product availability on store shelves.

The retailer announced its Prepaid Consolidation Program, which expands its first-mile capabilities by allowing suppliers to ship products under a single national purchase order to one location, where inventory is then combined and distributed across its 42 regional distribution centres.

“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 vice-president 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.”

The program is designed to streamline the supplier experience by allowing companies to maintain their prepaid freight terms while choosing to manage shipments through Walmart or approved third-party logistics providers, including C.H. Robinson, Hub Group and RJW Logistics.

Suppliers will pay a set, per-case rate covering handling at automated consolidation centres and outbound transportation to distribution facilities, with Walmart providing region-specific pricing and no additional markups from participating providers on services it performs.

Walmart says the model is intended to simplify shipping by reducing multiple shipments to a single destination, while improving efficiency, lowering costs and increasing speed to shelf.

By consolidating inbound shipments and distributing inventory across its network, the company says it can improve flow consistency, reduce variability and strengthen in-stock performance.

The program will be introduced in phases, with participation prioritized based on supplier volume and available capacity.