What Is Walmart's National PO Program? 

In this article, learn about:

• How suppliers managed POs before the program

• What is Walmart's National PO Program?

• Benefits of the National PO Program

• Walmart's shift towards regional receiving

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Walmart is always looking for ways to make their supply chain smoother and more efficient for themselves and their suppliers. Their latest innovation? The National PO Program. 

It is important to note that not all suppliers have access to the National PO Program yet. This new initiative is being selectively rolled out to suppliers who meet specific requirements. 

How Were Suppliers Managing Purchase Orders Before the Program?

Suppliers sending products to Walmart locations across the country are required to work with various Regional Distribution Centers (RDCs). To get products to these RDCs, separate purchase orders had to be created for each location, which often meant managing dozens of POs, prepping multiple pallets, and handling a lot of repetitive administrative work.

This process was not only time consuming but also often costly, especially for suppliers with Less than Truckload (LTL) shipments.

Related Reading: What Is LTL Shipping?

What Is the National Purchase Order Program? 

The National PO Program was introduced to address these inefficiencies. Rather than generating multiple POs for each Regional Distribution Center (RDC), suppliers in the program now have the option to create a single national PO. This consolidated approach allows a single pallet with the national PO to be prepared and shipped to one of Walmart's consolidation centers---either an Automated Consolidation Center (ACC) or a Manual Consolidation Center (MCC). Once the shipment arrives, Walmart handles the breakdown and forwarding of the products to the relevant RDCs.

How Does a Purchase Order Work?

A purchase order is typically the starting point of your supply chain. It is a legally binding agreement between a trading partner and a buyer, detailing items that the buyer would like to order from the trading partner. It contains prices that both parties have agreed to, including discounts, as well as delivery terms. Once a purchase order has been sent to the trading partner, then the whole life cycle of the order begins.

How Does the Program Work? 

For example, a supplier of household cleaning supplies needing to distribute products nationwide would previously have had to:

• Create multiple POs---one for each RDC receiving the product.

• Label and prepare separate pallets for each PO.

• Ship those pallets to a consolidation facility, where they would eventually be grouped into full truckloads and sent onward.

This process added labor, time, and expenses, especially for those dealing with LTL shipments that did not fully utilize truck space.

Under the National PO Program, suppliers can now:

• Create one single PO for all the RDCs.

• Prepare and label a single pallet with all the products for that PO.

• Ship the pallet to a Walmart consolidation center.

From there, the consolidation center takes over, breaking down the shipments and redistributing products to the appropriate Regional Distribution Centers (RDCs), creating a smoother and more optimized process.

The Benefits of the National PO Program

This isn't just about cutting down on labels or avoiding paperwork. The National PO Program offers substantial, tangible benefits that positively affect both costs and the effectiveness of Walmart's supply chain.

Lower Costs 

By consolidating shipments into one, suppliers can sidestep the added costs of multiple LTL shipments. Fewer pallets, fewer labels, and a single PO translate to savings in transportation, labor, and packaging.

Simplified Operations

Fewer POs and shipments mean fewer administrative tasks. This simplicity minimizes errors and reduces the hassle of getting products where they need to go.

Shorter Lead Times 

Consolidated shipments reduce the time it takes for products to reach stores. With fewer delays, products are on shelves faster, benefiting both suppliers and Walmart.

Enhanced Inventory Management 

With Walmart overseeing redistribution from the consolidation centers, they can respond more rapidly to demand changes. This flexibility ensures that products reach the right place at the right time, reducing the likelihood of out-of-stock situations.

Walmart's Shift Towards Regional Receiving

One big part of the National PO Program is Walmart's move toward a more regional receiving model. Instead of depending only on Local Distribution Centers (LDCs), Walmart now utilizes regional facilities such as crossdock and consolidation centers to manage shipments more effectively. These centers function as hubs where large shipments are received, sorted, and then distributed to the appropriate RDCs.

Related Reading: What is Cross-Docking?

Avoiding Delays at RDCs

Suppliers have sometimes experienced delays or confusion at RDCs, where shipments might get held up or misplaced. One of the key goals of the National PO Program is to reduce these kinds of issues. By centralizing the intake and sorting of shipments at the consolidation centers, Walmart can better track where products are and make sure they get to the right RDC without unnecessary hiccups or delays.

In Summary

The National PO Program is all about making the supply chain more efficient and supplier-friendly. Fewer POs, fewer pallets, and simplified shipments mean you save on costs and reduce the amount of time spent on logistics. It's an easier, more streamlined way to do business with Walmart.

Beyond that, Walmart's increased flexibility in managing inventory through their consolidation centers means suppliers' products are more likely to be available when and where they're in demand. 

Protect Your Business at Walmart 

Deductions and compliance fines are commonplace when selling to any retailer. SupplyPike helps Walmart suppliers get paid and get better. Our software tests the validity of deductions, collects proof documentation, and takes disputing a claim down to a few (or zero) clicks.

Our software also helps suppliers avoid fines by digging into root cause analysis and providing executive-level oversight of the supply chain. Schedule a meeting with a team member to find out if SupplyPike is right for your retail business.

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