Until this point, Walmart Collect Freight has been a blended cost model where suppliers provide cost concessions on items in return for Walmart managing and supplying transportation. In this model Walmart assumes responsibility for the costs and accepts the risk on certain transportation costs such as driver pay, equipment cost, and fuel charges.
Walmart notified Collect Suppliers the first week of July that the Collect Freight Model would be changing effective August 1, 2022. Details of the new model have been limited to date.
This is what we know about the main components.
Fuel Surcharge
Fuel surcharge will take an industry approach to calculate actual fuel surcharges based on mileage and fuel price based off real-time fuel costs.
Collect Pickup Charge
Walmart has not specifically defined the Collect Pickup Charges in terms of value just yet. The new model will utilize a department level freight cost percentage applied to the value of the transported goods.
Important Note
Walmart will apply these charges as invoice deductions. Therefore, the deductions must be included in Accounts Receivable process. Walmart has indicated the deductions will begin in September.
Our team recommends all Collect Suppliers work closely with their transportation team to evaluate the implications of this new program on their individual businesses. If after this evaluation, you decide to continue as a Collect Supplier, your Vendor Number will automatically convert to the new terms on August 1, 2022. Conversely, if converting to prepaid, you must complete the Prepaid Agreement no later than the August 1 deadline.
For help evaluating and understanding financial implications of the Collect Pickup Program, please contact your Legacy Retail Team or connect with us at WMTCPP@legacyretail.com for help.
