Shipping packaging, also called tertiary packaging, is the outer layer that protects products as they travel from supplier facilities to retailer DCs. While primary packaging is designed for shoppers and secondary packaging helps with stocking, shipping packaging is all about durability and efficiency in transit.
At this stage of the supply chain, packaging is more than just protecting the product. It has to hold up under stacking, shifting, and long-haul transport while meeting every requirement that is outlined in a retailer's routing guide.
Related Reading: Walmart's Shipping and Routing Transportation Guide Cheat Sheet
General Shipping Requirements
Standard Pallet Dimensions
Most retailers across the U.S. use the 48” x 40” GMA four way pallet as the foundation for their shipping operations. These dimensions have become the industry standard because they’re compatible with forklifts, conveyors, and automated warehouse systems, making handling consistent and efficient across the supply chain.
Retailers often enforce strict limits on how pallets are built in order to reinforce warehouse safety and product integrity. Loads generally cannot exceed 96 inches in height and 5000lbs in weight but may vary according to carrier or retailer requirements. The standard weight for a 48”x40” wood pallet, however, is roughly 2500lbs. Loads that exceed 2500lbs or stretch beyond the acceptable height limit can become unstable, increasing the risk of collapse during transportation or during storage.
The way pallets are stacked is another key factor in determining compliance. Retailers expect pallets to have no overhang, even layers, and secure tie patterns that prevent shifting during transportation. Walmart, for example, lists both “Pallet Overhanging” and “Exceeds Max Pallet Height” as common SQEP defects. One unstable pallet, or pallets with broken boards, exposed nails, or incorrect dimensions, can lead to deductions across an entire shipment, even if the products inside are not damaged, which is why it is important for suppliers to build a pallet inspection step into their loading process.
Stretch Wrap, Corner Boards, and Banding Rules
Once the pallet is assembled, the next step is to secure the pallet for transport. Stretch wrap, corner boards, and banding are all essential in maintaining shipment stability and security while traveling through carriers and DCs. In general, all serve as a collection to maintain stability and prevent shifting or tipping, so that loads can be received timely, damage free, and compliant with retailer expectations.
Stretch wrap is the most common, and often most critical, form of pallet containment. This is why retail giants like Walmart have strict guidelines when it comes to containment materials and techniques. For instance, for Walmart suppliers, loads are to be wrapped from the bottom up in an overlapping state, with the bottom wrapped at least two times to reinforce the bottom boxes. Properly employing this tactic provides the security needed to prevent the cartons from shifting in transit while maintaining clear fork entry points. Additionally, stretch wrap must be clear, 80 gauge, and 15 inches wide (if applying it manually). Walmart does not allow stretch wrap that is either colored, black, or tinted, unless a special event allows it, and prior written approval from Walmart is received.
In addition, suppliers must avoid common non-compliant practices such as wrapping between pallet layers, using twine or netting for containment, or applying more than 10 layers of stretch wrap. Even small oversights (like leaving a tail loose or securing labels improperly) can cause deductions.
Corner boards are more essential to protect heavier or fragile shipments. They provide pallets stability to maintain pallet construction, to avoid edge crushing and to minimize compression damage when pallets are strapped or stacked in a warehouse or truck.
In cases where additional reinforcement is necessary, banding or strapping may be used to secure heavy or irregular loads. However, excessive pressure can deform cartons or weaken packaging integrity. Retailers such as Dollar General explicitly prohibit over-strapping, gluing cartons, or combining loads in ways that interfere with automated handling systems.
Labeling and Barcode Placement
Labeling and barcode placement may seem like small details in the larger scheme of the packaging process, but in retail logistics, they carry a lot of weight. A single misplaced or unreadable barcode can delay an entire shipment, trigger a deduction, or even disrupt store-level inventory. For example, it is not uncommon for a barcode to accidentally be placed on the wrong product. When the retailer scans the barcode for one product but opens it up and receives another, this not only triggers a shortage deduction on the product that wasn’t received, but the supplier also faces a loss on the incorrect product sent, as the retailer won't pay for it and instead will charge the supplier another fee for returning it or getting rid of it.
At the end of the day, labeling is about communication and traceability. Every carton that leaves the supplier's dock must tell the retailer what is in the carton, where it is going, and how it should be handled.
Related Reading: The Future is 2D Barcodes: The Roadmap to Meeting Retailer Demands
Importance of Proper Labeling
Ensures accurate identification: Labels make it easy to locate, sort, and stock products correctly throughout the supply chain.
Helps retailers comply with legal and regulatory requirements: Proper labeling ensures adherence to industry standards and avoids fines or recalls.
Improves customer experience: Clear, informative labels help customers make confident, informed purchasing decisions.
What a Label Should Include
A proper label communicates key details for both operational efficiency and legal compliance. These typically include:
Product identification: Name, brand, and a description.
Compliance information: Any required certifications, hazard warnings, and/or regulatory symbols (e.g., FDA, USDA, EPA).
Barcodes and QR codes: Scannable GS1-compliant identifiers used to match shipments with ASNs and POs. This is required for inventory management.
Expiration or lot codes: Needed for perishable goods and product recalls.
Logistics data: Carton quantity, dimensions, or handling instructions.
Placement and Process
Labels should be positioned so they are visible during a scan on two adjacent sides of each carton. They are typically placed in the lower right quadrant of the carton. This allows quick scanning at every touchpoint, from the supplier dock to the retailer’s DC. Pallet labels should also include the PO number, destination DC, and GTIN, matching the information transmitted electronically through EDI.
The labeling process often follows these steps:
Data generation: Label data is pulled directly from the supplier’s ERP or EDI system.
Printing: Automated print-and-apply systems ensure consistency in format and placement.
Verification: Before pallets are wrapped, each barcode should be scanned to confirm readability and data accuracy.
Walmart’s SQEP program regularly identifies “Missing Barcode,” “Wrong Format," and “Incorrect Barcode” as common compliance defects. These can occur when barcode data doesn’t align with item setup in Retail Link or when labels are misplaced during packaging.
Supplier Tip: Build a verification step into your packaging line. A quick scan test at the dock can catch issues before they become deductions.
Shipping Documentation
While labels keep products organized, documentation keeps the shipment accountable. Each document—whether digital or printed—serves as a record that connects what was ordered, what was shipped, and what was received. In other words, documentation is the bridge between physical movement and financial reconciliation.
Without proper paperwork, even a perfectly packaged and labeled shipment can stall in transit or fail to process in a retailer’s system. Retailers rely on standardized EDI (Electronic Data Interchange) documents to confirm quantities, verify compliance, and process payments.
The Documentation Process
Shipping documentation begins the moment a purchase order (PO) is issued and continues through delivery confirmation. The process typically looks like this:
Purchase Order (EDI 850): A buyer-generated form authorizing purchase of goods from a supplier.
Bill of Lading (EDI 211): Document between supplier and carrier detailing the goods being shipping.
Advance Shipping Notice (EDI 856): provides retailers with detailed information about a shipment before it arrives.
Invoice (EDI 810): A document sent from the supplier to the retailer requesting payment of the delivered goods.
Proof of Delivery (EDI 861): Confirms the shipment was received by intended party.
Retailers use these documents to measure supplier performance and accuracy. A late or mismatched ASN, for example, can appear as a compliance violation even if the shipment arrives on time. Similarly, unsigned Proof of Delivery documents can make it impossible to dispute deductions for supposed shortages or damages.
Related Resource: ASN Accuracy at Walmart and Amazon
Importance of Proper Documentation
Proper documentation ensures:
Clear communication between trading partners: Keeps suppliers, carriers, and retailers aligned on shipment details and expectations.
Seamless transportation: Provides carriers with the necessary information for accurate and timely deliveries.
Regulatory compliance: Ensures shipments meet legal and industry requirements to avoid fines or delays.
Efficient receiving: Helps retailers quickly verify and process incoming shipments.
Reducing/disputing chargebacks: Minimizes errors and provides proof to contest inaccurate deductions.
The ability to do root cause analysis: Allows retailers to track shipment details to identify and resolve recurring supply chain issues.
Best Practices When Shipping
To strengthen compliance and minimize deductions:
Cross check all documents for consistent PO numbers, SKU details, and shipment counts.
Note any visible issues on the Bill of Lading or POD before signing.
Maintain a centralized, accessible record of all shipping documents—Purchase Orders, Bills of Lading, ASNs, Invoices, and Proofs of Delivery. Many companies struggle to locate complete records when disputes arise, with files spread across email inboxes, hard drives, and paper archives.
Store all shipping documents for at least one fiscal year for post audit verification.
Use EDI or integrated supply chain software to minimize manual entry errors.
Submit supporting documents promptly to protect against expired deduction windows.
