On May 26, 2026, a new supply chain strategy by Walmart called Prepaid Consolidation has been announced, staying true to its promise to customers of Everyday Low Prices EDLP. This program simplifies incoming supplier logistics and creates a more interconnected, flexible, and technology-enabled supply chain that enhances service and reduces cost, delivering goods to shelves and consumers faster.
The new supply chain strategy by Walmart has made way for the program which is an extension of the first-mile capabilities of Walmart for prepaid suppliers utilising the retailer’s national supply chain system to develop a scalable approach to integrate shipments to provide higher efficiency in transportation. Suppliers ship product under the umbrella of a single national purchase order to a single location, and from there Walmart consolidates the stock and sends it out to the 42 regional distribution centers – RDCs.
According to senior vice president of supply chain at Walmart U.S., Mike Grey, “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.”
Supplier Experience Streamlining
The Prepaid Consolidation Program is intended to reduce the burden on suppliers while maintaining adaptability. Suppliers don’t have to alter their prepaid freight conditions because Walmart does it for them. Rather, they have the option to manage their own shipments via Walmart or partner with third-party logistics providers 3PLs that are approved by the company, such as C.H. Robinson and Hub Group as well as RJW Logistics.
Suppliers pay an open price-per-case rate which includes case management at the automated consolidation center – ACC and outbound transportation to Walmart RDCs via the process. Walmart will offer participating vendors region-specific rates for suppliers that are compatible with them through a published rate card from Walmart, and participating providers will not add any extra markup to services carried out by Walmart.
Enhancing efficiency and cutting cost
Vendors get streamlined shipping one national PO and one destination in addition to clear pricing as well as access to the national distribution network of Walmart. It allows a model to be more efficient without changing pre-paid freight terms and can drive down the total expense while boosting speed to shelf.
Walmart reduces variation and enhances flow uniformity through inbound shipment consolidation and allocation of inventory throughout its RDCs. This leads to better replenishment accuracy and enables stores to better serve their in-stock position.
The Prepaid Consolidation Program will be implemented in phases, with participation prioritised depending on volume synchronisation as well as capacity growth.
