In this article, learn about:
What store-specific orders are
Why a supplier or a retailer might choose to use store-specific orders
How to submit store-specific orders to Walmart
Store-specific orders (SSOs) are a type of purchase order (PO) in which a supplier directs products to specific store locations instead of to a retailer’s distribution center. Though retailers or replenishment managers typically initiate the SSO, suppliers generally determine both the specific quantities of products and the destination stores for distribution.
When are SSOs Necessary?
SSOs can serve many purposes, but primarily they address situations in which a store requires more product than what is currently available through the supply chain.
Here are some reasons why a supplier might create an SSO:
Short Supply SSO
The most common reason a supplier uses an SSO is to combat stockouts. If a stockout occurs, the supplier will likely need to adjust their replenishment strategy to combat the root causes of the stockout. However, situations can occur outside of a supplier’s control which can result in stockouts, such as a temporary lack of stock in a competitor’s product, leading to the supplier’s product being oversold.
Related Resource: Replenishment 301: Avoiding Out-of-Stocks
Committed Buy SSO
Occasionally, retailers such as Walmart will commit to purchasing a set quantity of a temporary product, such as soda cans branded with post-season team logos during the playoffs, in order to stock end caps or action alleys without taking away space from year-round products.
In this case, retailers typically provide a quantity of product that they’ve committed to purchasing for a set period of time. The supplier is then responsible for submitting multiple committed buy SSOs throughout that set period of time. For example, if Walmart commits to purchasing 10,000 units of soda over three months, the supplier may be expected to submit three SSOs (once per month) with the required store/order quantity combinations.
With a committed buy SSO, suppliers have to be careful when calculating the quantity combinations. If too little product is ordered at the start, then stockouts could occur as the items are exhausted too early. On the other hand, if too much product is ordered, then overstocks in stores could occur, resulting in potential markdowns later on.
Seasonal SSO
Seasonal SSOs are ordered when a supplier knows that demand for their products will increase more than represented in the demand forecast, such as if a supplier’s products are featured in a viral video, resulting in a sudden and unexpected spike in consumer interest. Because this sudden spike is likely unaccounted for in a demand forecast, the supplier could recommend a seasonal SSO to the retailer to account for the number of units expected to sell in excess of the current forecast.
Related Reading: What is Demand Planning?
While a committed buy SSO and a seasonal SSO may seem similar, the difference lies in the fact that a seasonal SSO contains a recommendation to the retailer for the number of units expected to sell, in addition to the forecast. A committed buy SSO, on the other hand, is determined by the retailer without this recommendation.
Promotional SSO
Promotional SSOs are intended to encourage sales of a particular product at an advantageous time, such as products branded with a local championship winner’s logo which a retailer has committed to purchasing. For a promotional SSO, a supplier will typically work directly with the retailer’s replenishment team to determine the number of stores and expected item quantities.
Damage SSO
Damage SSOs are intended to help suppliers quickly replace items that have become damaged or otherwise unsellable. The demand forecast likely does not take unexpected damages into account. Therefore, as with seasonal SSOs, a supplier will likely be required to recommend quantities and locations for orders to ensure stores do not suffer from stockouts.
Related Resource: Shortages, Damages, And Claims For Freight Shipments
How to Submit an SSO to Walmart
Many suppliers find SSOs to be difficult. In order to determine the quantities of items to be sent to stores, suppliers need to consider a number of factors, including the demand forecast, historical sales velocity, and the inventory available at the warehouse. Additionally, suppliers are often required to convert the units of warehouse packs to vendor packs, in order to ensure that all stores receive at least one warehouse pack and all distribution centers receive orders incremented by vendor pack.
In order to submit SSOs to Walmart, suppliers must log in through Walmart’s
and access the NOVA app. This app allows suppliers to create and edit POs, bypassing the need for manual contact with replenishment managers.
The NOVA dashboard
Creating a PO in NOVA may initially seem complex, as the order creation template contains a wealth of information and multiple tabs for data input. However, most SSO requests will be through either cross-dock (PO Type 3) or direct-to-store distribution (DSD, PO Type 7). Additionally, Walmart only requires suppliers to complete the information for columns highlighted in green; blue columns are optional, and the gray columns are for system-generated data, which NOVA will complete once the app processes the PO.
Example of the order creation template
Once in the NOVA app, suppliers can create a new SSO through the following method:
Select the TEMPLATE link at the top of the NOVA dashboard to download a .zip containing two templates, one for Order Creation and one for Order Maintenance
Save the Order Creation template and open it in Microsoft Excel
Choose the correct Excel tab for the SSO and fill out the required information
Once the Order Creation template is complete, return to NOVA and click on the blue Order Creation button
Select the PO type and click Continue to upload the completed Order Creation template
Once the Order Creation template is uploaded, the Results screen will summarize the PO details
Related Resource: Retail Link Essentials for Walmart Suppliers
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