In this article, you will learn:
What a supplier number is
Why a supplier number is important
How to manage issues
_____________________________________________________________________________________________
What is a Supplier Number?
The supplier number is the supplier's key to everything when it comes to working with retailers. A supplier number is not only the unique identifying number the retailer assigns to the supplier, it also provides access to everything the supplier needs across multiple systems and processes.
Walmart Supplier Numbers
Each retailer has their own process for designating supplier numbers. For Walmart, any given supplier might have multiple supplier numbers with different functions. Some supplier numbers might indicate where the supplier is in their agreement with the retailer.
As soon as the supplier/retailer relationship is established with Walmart, the supplier is issued the 4 supplier numbers listed below:
Walmart 6-digit Number
This is Walmart's basic identifying number for each supplier. Once a supplier enters into an agreement with Walmart, this number is assigned and unique to that supplier. This number is also called the Partner Number or Vendor Number.
Walmart 8-digit Number
Also called a Supplier ID, this number is used on the market level to identify suppliers both domestically and internationally. A supplier will have one Supplier ID for domestic and one for import.
Walmart 9-digit Number
The 9-digit Supplier Number is also called the Agreement Number. The first 6 digits of this number are equal to the supplier's base 6-digit number, followed by the department number, and then a sequence number that indicates a contract. A supplier might have multiple Agreement Numbers, even within the same department, but each one will start with the same 6-digit number.
Walmart 10-digit Number
Also called the SAP Supplier ID number, this is the number assigned to a supplier for all financial systems at Walmart. Typically, a supplier will only need this number for accounts payable. Keep in mind that Vendor Number and Supplier Number are generally used interchangeably.
Target Vendor Numbers
Target calls the identifying number given to each supplier a Vendor Number, which is designated at the start of the supplier's relationship with Target. This Vendor Number will be tied to various processes, items, contracts, return policies, and payment terms. As with Walmart, Target suppliers may also have multiple codes associated with different parts of the supplier puzzle.
For example, Target suppliers will have a different Vendor Number for their import business, also called Direct Vendor Ship (DVS). They may also have various Vendor IDs for different domestic processes.
Amazon Vendor Codes and Seller Numbers
Amazon calls their supplier numbers Vendor Codes. They also utilize Seller Numbers.
The function of Vendor Codes and Seller Numbers is essentially the same. They are both unique identifiers denoting the source or manufacturer of products that Amazon buys. However, a Vendor Code is unique to the Vendor Central platform, which is an invite-only channel for larger, 1P suppliers, and a Seller Number is unique to the Seller Central platform, which is an open platform where anyone can register to sell their products.
Amazon's Vendor Code is the identifying number applied upon contract with each vendor. Each vendor may have multiple codes if they have multiple accounts with Amazon. Each vendor may have an "ordering code" associated with a particular brand or manufacturer, or a vendor code that aligns with a unique line of business or a channel on Amazon. The larger the brand, the more vendor codes it will have.
Suppliers can access their Vendor Code in Vendor Central via the portal's Catalog or Remittance sections.
The Importance of the Supplier Number
The Supplier Number is important to the retailer because it allows large companies, like Walmart, to keep track of their many vendors/suppliers and the many capacities and services those vendors/suppliers provide. The supplier number is important to the supplier because it is essential for submitting invoices, processing payments, and tracking deductions. It is also used in compliance documentation, EDI transactions, and disputes.
Supplier numbers ensure organization, efficiency, and compliance. For the supplier, the supplier number is more than just an identifier.
Purchase Orders from retailers are associated with a specific supplier number, and that supplier number has contractual requirements that both the retailer and supplier must meet.
Because the number is tied to the supplier-retailer contract, this helps both the supplier and retailer manage procurement and reporting, among the various pieces and products of the specific contract.
In summary, the supplier number is important because it is tied to the supplier agreement, which drives everything from shipping methods to discounts, payment terms, and return policies, all of which can impact deductions and compliance. The supplier number ensures smooth operations, accurate payments, and performance monitoring—critical elements for a supplier's success in maintaining a strong and efficient partnership with retailers.
Potential Issues and How to Solve Them
Difficulties can arise, for suppliers, when having to manage multiple supplier numbers across multiple retailers. These difficulties can become particularly difficult when a supplier absorbs another supplier’s contract, inheriting the supplier number associated with that contract. This would happen when a larger enterprise supplier buys a business that was already working with the same retailer. In that scenario, the larger supplier simply gains the supplier number associated with the existing contract, and those products are still ordered under the original supplier number.
As the supplier manages multiple numbers both across multiple retailers and within a single retailer, it is imperative that vendor agreements list the number accurately. Should the number be inaccurate, or should an agreement list an incorrect number, this would be a compliance concern with the retailer. Then, if a dispute becomes necessary, it may be rejected or unresolved if any of the documentation is incorrect, such as listing an incorrect Supplier Number.
As with much of the supply chain process, keeping track of your Supplier or Vendor Number can be just one more process. However, it is important to ensure that all documentation is always accurate. Check your supplier number today to prevent compliance issues!
More Information From SupplierWiki
For more free educational content like this (eBooks, Cheat Sheets, Webinars, and Articles), sign up for our newsletter. We cover material essential for retail suppliers, especially related to revenue loss at Walmart, Amazon, CVS, Target, Kroger, Lowe's, and Home Depot.