SUPPLY CHAIN
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Supporting dreams through US manufacturing – who knew?
T o support its Everyday Low Prices commitment, Walmart US has launched a new supply chain strategy called Prepaid Consolidation. Designed to simplify inbound logistics for prepaid suppliers, the initiative aims to build a faster, more scalable, tech-enabled supply chain that improves service levels while lowering overall costs.
The programme expands Walmart’ s first-mile capabilities by utilising its national network to merge shipments, creating significant transportation efficiency. Instead of navigating multiple drop-offs, suppliers send products under a single national purchase order to one Automated Consolidation Center. From there, Walmart combines the inventory and distributes it across its 42 regional distribution centres.
Crucially, the program offers operational flexibility without requiring
changes to existing prepaid freight terms. Suppliers pay a transparent, price-percase rate covering handling and outbound transit, managing shipments either directly through Walmart or via approved third-party providers like C. H. Robinson, Hub Group and RJW Logistics.
By consolidating inbound freight, Walmart reduces network variability and improves flow consistency. This enhanced replenishment precision ultimately drives stronger in-stock performance across stores.
“ We’ re focused on making our supply chain simpler, faster and more efficient for suppliers, while also keeping products in stock for our customers,” says Mike Gray, Senior Vice President of Supply Chain at Walmart US.
“ By strengthening our first-mile capabilities, we’ re reducing complexity and keeping goods moving, so we can deliver even more value every day.”
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