Walmart announced a new supply chain initiative called Prepaid Consolidation, designed to move products to shelves faster, improve operational efficiency, and reduce costs across its logistics network.
The new program expands Walmart’s first-mile supply chain capabilities for prepaid suppliers by leveraging the company’s national logistics infrastructure to consolidate shipments before distributing them across its 42 regional distribution centers (RDCs). Under the model, suppliers ship products to a single national location on a single national purchase order, where Walmart consolidates inventory and allocates it throughout its distribution network.
According to Walmart, the initiative is intended to simplify inbound supplier logistics and create a more scalable, technology-enabled supply chain that improves service levels and supports the company’s Everyday Low Prices (EDLP) strategy.
Mike Gray, senior vice president of Supply Chain at Walmart U.S., said the company is focused on making its logistics operations “simpler, faster and more efficient” for suppliers while ensuring products remain in stock for customers.
The Prepaid Consolidation Program allows suppliers to maintain their existing prepaid freight terms rather than requiring operational changes. Suppliers can either manage shipments directly through Walmart or work with approved third-party logistics providers, including C.H. Robinson, Hub Group, and RJW Logistics.
Under the program structure, suppliers pay a transparent per-case fee that covers handling at Walmart’s automated consolidation centers (ACCs) and outbound transportation to regional distribution centers. Walmart said participating providers will use region-specific pricing published through Walmart’s rate card system without adding additional markups for Walmart-performed services.
The retailer said the new model simplifies shipping by allowing suppliers to manage a single national purchase order and a single destination point while gaining access to Walmart’s national distribution infrastructure. Walmart also noted the program may reduce total shipping costs while improving speed-to-shelf performance.
By consolidating inbound shipments and allocating inventory more efficiently across regional distribution centers, Walmart expects to improve the consistency of inventory flow, reduce operational variability, enhance replenishment precision, and strengthen in-stock availability at stores.
The rollout of the Prepaid Consolidation Program will occur in phases, with supplier participation prioritized based on alignment with shipment volume and distribution capacity expansion.
Walmart reported fiscal year 2026 revenue of $713 billion and operates more than 10,900 stores across 19 countries, serving approximately 280 million customers and members weekly through its retail stores, eCommerce platforms, and mobile applications.
KEY QUOTE:
“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.”
Mike Gray, Senior Vice President Of Supply Chain, Walmart U.S.
