Attention Vendorville,

There’s a buzz around town when it comes to Walmart’s Collect Pickup Program.

If you haven't heard about it yet, read on to get up to speed on all the deets.

🛍️ What's the Collect Pickup Program? 🛍️

The Collect Pickup Program was the talk of the town in July 2022. It revolutionized the cost of shipping Collect with Walmart.

The charges that make up the Collect Pickup Program (CPP) were twofold: a Pickup Charge and a Fuel Surcharge.

The Pickup Charge is for Walmart Freight to pick up any shipped items. The dollar amount of the Pickup Charge is a percentage of the COGS that changes from department to department and month to month. The monthly deduction from supplier Cost of Goods invoices occurs at the 6-digit vendor accounting level.

The Fuel Surcharge is based on the distance to deliver products to its destination plus the factor of current gas prices. Fuel data aggregates at the 6-digit supplier level for billing.

You may not need to read further if you are a supplier who ships exclusively Prepaid. Unless you want to say for the tea. 🍵

🚨What’s in a name? 🚨

Collect Pickup Program changing it’s name to Fuel Management Program:

As of February 1st, the Collect Pickup Program (CCP) rebranded to the Fuel Management Program (FMP).

The big name change was brought about by the Pickup Charge being eliminated from the program. The last department charge was issued at the end of February, with March being the first month without department charges.

💎 The Details 💎

Who does this effect? This program is for all of Walmart U.S. Collect Suppliers. If your business is a mix of Collect and Prepaid, only the POs shipped Collect are affected.

DSV suppliers are included if the POs are created in Order Management System (OMS) and the supplier has Collect Freight terms. Ecommerce orders are not included.
Walmart Fulfillment Services (WFS) and Prepaid suppliers who are backhauled are not included in the program.
Direct Imports are not included in the program.
Any POs that flow through a consolidation center will be charged in this program regardless of the method of delivery.

What is the charge and how is it applied? The fuel passthrough fee will be billed monthly and be applied similarly to the Fuel Surcharge.

Charges will occur as a monthly invoice deductions for fuel charges. The monthly deduction from supplier Cost of Goods invoices will take place at the 6-digit vendor accounting level.

What about if I ship Less-than-truckload (LTL)? Multiple suppliers on the same truck will split fuel cost and is based on PO contribution predicted on the size of the load.

How is this measured?

Similar to the fuel surcharge, Breakthrough Fuel (BTF) is a program Walmart Transportation has used for third party carriers. Walmart will leverage BTF data for all Walmart Collect shipments whether transported by Walmart’s fleet or Walmart’s engaged third party carrier.

The fuel cost is based on the actual freight movements and real-time fuel costs, capturing daily fuel price changes that are matched against geographic locations and each shipment day. This calculation applies state and local taxes based on route data and captures regional price differentials across the U.S.

Fuel charges will adjust per billing cycle predicated on the ship points.

👑 The Final Word 👑

So, there you have it, Vendorville - the scoop on the Collect Pickup Program Fuel Management Program.

Here’s some additional insights:

There’s a lot of process changes at Walmart – with Luminate replacing DSS and SupplierOne replacing Item360, it means seasoned experts need to spend more time training on new programs.
Don’t anticipate that the Pickup Fee is gone forever. There’s no reason to believe that the Collect Pickup Program will be reinstated, however. Suppliers who can anticipate additional expectations at Walmart and quickly adapt are less likely to be caught off guard.
Ask for help. All program information can be found at Supplier Academy > Transportation Basics > Collect Transportation and General Topics on Retail Link. You can also reach out to the team at SupplyPike for help navigating this change.

Other Retailer News 📰

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April 2, 2024

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"The shipping shake-up crowns UPS as the Postal Service’s new partner in the air."

Rick’s Tips 💘

If you’ve jumped in mid-stream and are asking yourself, “Who is 1-Click Rick?” – you aren’t alone. Rick is SupplyPike’s helpful mascot, full of tips and tricks for all things around revenue loss. In this section of the newsletter Rick likes to answer FAQs.

“ASN Late is new as part of the split up with SQEP recently. It previously fell under "ASN Not Downloaded".

Sending ASNs when they leave your shippoint/origin so it arrives before your shipment gets to the DC is the best practice to avoid Late ASN charges."

Let’s Circle Back 🌀

This ain’t Texas, it’s Vendorville. 🤠

Country music is getting a bit of attention so we thought we’d hitch our wagon to the trend with the help of AI.

Pop in your headphones and punch these instant hits into your jukebox. 🎶

For Amazon Suppliers: Charged with Emotion

A case for setting up EDI correctly: Automation Highway

For Target Suppliers: The TVI Blues

Have a listen and try making your own!

❤️ Sincerely, Your Friends in Vendorville

SupplierWiki

XOXO, Collect Pickup Program📰👜🌟