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Wal-Mart's small order: new inventory, shipment strategy relies on 3PLs to consolidate freight, control rising transport costs.

Traffic World

| November 07, 2005 | Cassidy, William B. | COPYRIGHT 2003 All Rights Reserved. (Hide copyright information)Copyright

The world's biggest retailer wants to receive smaller shipments from its suppliers--and a lot more of them.

In a new logistics initiative that could ripple across countless supply chains, Wal-Mart Stores is asking suppliers to send smaller, more frequent shipments and use third-party consolidators to manage and reship that freight.

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The goal for what the retailer calls its "Remix" program is to eliminate stock outs and replenish stores more quickly, free up more floor space for sales and wring costs from its supply chain.

Shippers supplying Wal-Mart may see benefits, too. By using consolidators, shippers may be able to keep lower truckload rates while fulfilling more LTL-sized orders, logistics providers say.

That could help thousands of shippers keep transportation costs in check as Wal-Mart demands more product, more often. …

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