Continuing its commitment of Everyday Low Prices (EDLP) for customers, Walmart recently announced a new supply chain strategy, “Prepaid Consolidation.” This program will move products to shelves faster — improving efficiency and cutting costs without requiring changes to prepaid freight terms — by simplifying inbound supplier logistics and building a more connected, scalable, tech-enabled supply chain that improves service and lowers costs.
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. Suppliers send products under a single national purchase order to one location, and from there Walmart combines the inventory and distributes it across its 42 regional distribution centers (RDCs).
The Prepaid Consolidation Program is built to make things easier for suppliers while still giving them flexibility. Since it’s managed by Walmart, there’s no need for suppliers to change their prepaid freight terms. Instead, they can choose to manage their shipments directly through Walmart or work with company-approved third-party logistics providers (3PLs), including C.H. Robinson, Hub Group, and RJW Logistics.
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 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 its RDCs, Walmart improves flow consistency and reduces variability. This enhances replenishment precision and supports stronger in-stock performance across stores.
The Prepaid Consolidation Program will scale in phases, and participation will be prioritized based on volume alignment and capacity expansion.
This program is one of several supply chain-related upgrades Walmart has rolled out in recent years, ranging from inventory-tracking sensors to robotic installations at distribution centers. More improvements are in the pipeline as the company ramps up supply chain spending and invests in increased automation within its operations.
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