The surging cost of transportation has pushed the nation’s largest retailer, Walmart Inc., to begin charging suppliers in its Collect Pickup Program a pickup fee and fuel surcharge for freight the retail giant handles on their behalf. With retail compliance rising to national interest and debate, now is the time for suppliers to turn freight management into a business advantage.
Prepaid – Commonly referred to as delivered pricing, the supplier delivers product to retailer DCs, including all transportation and supply chain costs. Pricing starts with factory pricing, or first cost, and adds the cost to move merchandise through a 3PL’s facilities, such as RJW, to arrive at delivered cost, or final cost.
Collect – Commonly referred to as customer pick-up (CPU), the retailer assumes responsibility for moving goods from the supplier to their distribution centers. The supplier quoted price does not include transportation costs and typically starts with factory pricing plus a margin.
Master retail compliance and optimize spend by understanding the advantages of a Prepaid Program versus Collect – then assess which freight management process is right for you.
Leverage THE retail logistics expert to drive compliance, optimize freight spend and enhance supply chain efficiency.