New Walmart Program Improves Supply Chain

On May 26, Walmart announced a new supply chain strategy called Prepaid Consolidation, which simplifies inbound supplier logistics.

The goal is to get products to shelves and customers faster. And to do that, the company said it's building a more connected, scalable, tech-enabled supply chain.

"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, in a statement. “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 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).

Streamlining the Supplier Experience 

Suppliers can 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.

Improving Efficiency While Lowering Cost

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.