The retailer stated that this introduction is part of its ongoing focus on maintaining Everyday Low Prices (EDLP) for customers.
Prepaid Consolidation allows suppliers to send products under a single national purchase order to one designated location. From there, Walmart merges the inventory before distributing it across its network of 42 regional distribution centres in the US.
This consolidated approach is designed to enhance transportation efficiency by combining shipments from multiple suppliers, Walmart said.
Walmart US supply chain senior vice president Mike Gray said: “We’re focused on making our supply chain simpler, faster and more efficient for suppliers, while also keeping products in stock for our customers. By strengthening our first-mile capabilities, we’re reducing complexity and keeping goods moving, so we can deliver even more value every day.”
The strategy expands Walmart’s first mile services for prepaid suppliers without requiring changes to freight terms. Suppliers can choose to work directly with Walmart or use approved third-party logistics providers, such as C.H. Robinson, Hub Group, and RJW Logistics.
The company manages the programme, and suppliers are charged a transparent, price-per-case rate covering the handling at automated consolidation centres and outbound transportation to distribution locations.
Participating suppliers will access consistent, region-specific pricing via Walmart’s published rate card. According to the company, there are no additional mark-ups by third-party logistics providers for services carried out by Walmart itself.
Walmart stated that the Prepaid Consolidation programme offers suppliers a single national purchase order and a single destination, simplifying the shipping process. The model is expected to reduce costs while improving how quickly goods reach store shelves.
By consolidating inbound shipments and allocating inventory across its regional centres, the retailer aims to create greater consistency in the supply chain and boost in-stock performance in its stores.
The company also plans to increase the scale of the programme in phases, with participation prioritised based on supplier volumes and available capacity.
