Globally, Walmart employs over 2.2 million individuals. The United States is responsible for roughly 1.5 million of them. The company that Sam Walton founded in 1962 has grown into an empire with over $559.2 billion in annual revenue.
Walmart runs what it calls the Direct Store Delivery Consolidation (DSDC) system. DSDC refers to uniquely packed cartons delivered to specific stores using Regional Distribution Centers (RDCs).
DSDC is a Walmart program that involves picking and packing cartons for individual stores before shipping them through its distribution centers. That’s a different process from the traditional option.
Typically, suppliers prefer sending the cartons directly to the stores. However, this option has proved immensely popular because of the multiple benefits it offers. For example, it’s an efficient and cost-effective way of replenishing store inventory.
This option also works wonders for suppliers by reducing the shipping costs substantially. It also ensures that stores receive their shipment faster while allowing them to place small orders, which are more affordable.
The actual process Walmart DSDC multiple Purchase Order (PO) program is as follows:
A vendor or supplier creates POs via the automated replenishment system (GRS) or manually. Manual generation requires partnering with the Walmart Replenishing team. Store-specific orders can help here, too. The PO reaches suppliers via electronic data interchange (EDI) transmission.
Next, the Walmart store will send a DSDC type 73 purchase order to the supplier. This document carries vital details such as the quantity of each item and each item’s specific store distribution. The supplier then picks and packs the order appropriately.
The next task is to prepare Distribution Center (DC) orders. Here, the supplier has to palletize each store-specific case based on location. Shrinkwrapping is also essential at this stage to prepare each case for eventual delivery to the appropriate DCs.
After that, the supply chain would stop if the Walmart DCs don’t receive the items. At this stage, a Collect supplier must request routing information and confirm the shipment by 4 PM CST the following day. Such information is obtainable from the Walmart routing application.
Moreover, Prepaid suppliers have the option of establishing their own transportation arrangements. Nevertheless, all suppliers (whether Prepaid or Collect) must prepare single destination pallets for the next stage of the supply chain.
Nothing can happen without the supplier entering Advance Ship Notice (ASN) data for each PO shipment through RDCs. The suppliers must also monitor whether EDI acknowledgments of the ASN transmissions have been successful or not.
It’s the responsibility of RDCs to receive and invoice merchandise to all the relevant stores upon arrival. Any delays at this stage of delivery could spell disaster to the entire supply chain.
Next, the Walmart store receives the entire package. Staff at each store unloads the items from the DC trailer. An automatic update of store inventory would then follow from information on the supplier’s ASN.
At this point, the goods should be on the sales floor of the Walmart store that received them. Ideally, there should be no further delays. If anything, the staff should unload then load the items onto the sales floor immediately.
A supplier interested in the Walmart DSDC multiple PO PDQ program must meet a set of requirements first. These requirements are to ensure that the entire process works smoothly for everybody. They are:
The supplier must send an EDI 856 (ASN) first. ASN refers to an EDI document that contains shipping details as captured on the Purchase Order (PO). Suppliers have to send this document before the merchandise arrives.
Next, suppliers have to support the following transactions:
It’s worth noting that suppliers must have access to Retail Link before proceeding with any of the above. Suppliers must get in touch with their buyers to obtain access.
Suppliers also need ASN validation. Here, the EDI 824 Application Advice document is the most important. It’s necessary whenever the following types of errors occur while transmitting ASN:
Custom packed cartons are also necessary. These larger cartons will have smaller inner packs on the inside. A scannable UPC barcode must be clearly visible on the inner packs. No kind of labeling should be on the inner packs.
When packing, suppliers must fill each shipping container with one order from one store. Each shipping container, which must be conveyable, requires the right kind of labeling, which in this case is SSCC-18/128.
Suppliers can pack multiple POs in a single container if they have merchandise to ship from more than one department. However, such suppliers must first obtain approval from the following:
Suppliers have to know the correct Walmart DSDC multiple PO program steps to follow. Those who wish to convert to the program must do so after contacting the following people:
Walmart needs the identity of the person (point of contact) within the organization who will collaborate with the DSDC manager. The supplier must identify such a person to ensure smooth management of the entire operation.
Suppliers must send the Supplier Evaluation Form to the DSDC manager. This form is mandatory for each vendor number. The completion of a supply chain analysis follows to determine how DSDC would impact the business.
Suppliers must then share DSDC standards with the most important personnel in their organizations. A thorough understanding of these standards and their impact on the organization is necessary.
Next, suppliers should send any of their questions and concerns to the DSDC manager. The manager would then set up a conference call to address all concerns that the retailers raised.
Lastly, the DSDC manager works with the team responsible for supply chain optimization to determine if the organization qualifies for DSDC conversion. He or she will base the decision on the information the organization submitted.
Walmart’s Direct Store Delivery Consolidation program is a boon to some of its suppliers. With this program, suppliers who ship to different departments can take advantage of the multiple PO system. Ask your buyer if this program is right for you.
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