How Walmart is Streamlining its Supply Chain Process
Walmart is implementing a new strategy aimed at cutting down on the supply chain timeline for suppliers.
The world’s biggest retailer introduced its Prepaid Consolidation Program dedicated to getting products on shelves swiftly for customers by streamlining inbound supplier logistics through technology. This newly-formed process will improve service and lower costs.
Mike Gray, SVP of Supply Chain at Walmart US, says: “We’re focused on making our supply chain simpler, faster and more efficient for suppliers, while also keeping products in stock for our customers.
“By strengthening our first-mile capabilities, we’re reducing complexity and keeping goods moving, so we can deliver even more value every day.”
Walmart’s supply chain
Walmart will utilise its national supply chain network to merge shipments, requiring suppliers to send their products under one order to a specified location. From there, the company will combine all inventory and distribute it across 42 regional distribution centres.
The Prepaid Consolidation Program is managed by Walmart, allowing suppliers to manage their shipments through the company or other 3LPs including C.H. Robinson, Hub Group and RJW Logistics.
Suppliers will pay a price-per-case rate, which covers case handling of the automated consolidation centre and outbound transportation to Walmart regional distribution centres.
With the consolidation of inbound shipments and moving inventory across Walmart’s regional distribution centre, the company says this:
- Improves flow consistency
- Reduces variability
- Enhances replenishment precision
- Supports stronger in-stock performance across stores
Walmart says the programme is expected to scale in phases and participation from suppliers will be based on volume alignment and capacity expansion.
Walmart’s growth in technology
The company’s new supply chain approach follows a broad path of utilising various forms of technology to benefit both consumers and suppliers.
In 2025, Walmart introduced four AI agents to help improve the shopping experience for customers, assist employees and also help developers.
The AI agents are built on agentic AI which are systems that can handle decision-making, take action and handle multi-step tasks without the use of human prompts.
Walmart currently has a partnership with OpenAI which is dedicated to creating ‘AI-first shopping experiences.’
Within the same year, the retailer shared its use of radio-frequency identification (RFID) technology to aid in inventory management.
Walmart said in a previous press release: “Addressing food waste and ensuring freshness are more important than ever for consumers, producers and retailers.
“This first-to-market solution is set to transform inventory processes and enhance associate and customer experiences across fresh departments – particularly bakery, meat and deli.
“This is innovation in action, bringing RFID technology – once limited by temperature and moisture limitations - to new categories like protein and deli.
“This is technology connecting the physical and digital to reduce waste, improve labour efficiency, enhance consumer experiences and advance sustainability.”
Walmart also began introducing dark stores in 2025. Dark stores are locations where consumers place an order online and store staff use fulfillment logic to complete the order. Because of this, inventory becomes easier to track and replenish through tracking and automation. Speed and delivery are at the forefront of the company’s vision to introduce more dark stores for consumers.
