It is not uncommon to have invoice disputes in the range of 70% or more over every load a carrier delivers. While in principle it forms a healthy partnership with aligned interests, in practice there is immense complexity based on the number of variables. Each invoice has both fixed charges, and variable charges that are called ‘accessorial charges’. The business model that has evolved shares the risk of price fluctuations and unexpected events between the carriers and the beneficial cargo owners (BCO’s) like Walmart. It is both a capital-intensive business and they also face a high degree of volatility on each delivery (fuel prices, delays, unexpected events). This may sound easy, but the industry is inherently complex.Ĭarriers work around the clock, and through all seasons, to deliver goods. “The carriers are a vital link in Walmart’s supply chain backbone, and handle a vast array of transportation, so they need to ensure both efficiency and the best working relationships possible.”Īt the heart of a constructive relationship is managing a massive and constant flow of information, while ensuring the carriers are paid on time. “Walmart places enormous value on its partnership with third party transportation companies, referred to as ‘carriers’,” says Neeraj Srivastava, DLT Labs™ co-founder and chief technology officer. To do so, Walmart works with thousands of businesses to ensure that in aggregate, and with proper allocations to each store, it is sufficiently stocked to service more than 1.2 million customers every day. Within Walmart Canada (Walmart), one aspect of fulfilling that promise involved reexamining its supply chain logistics, and specifically its freight transportation, which enables stocking more than 400 stores nationwide with nearly 120,000 different products. That’s not only Walmart’s iconic slogan it’s the guiding principle for its multibillion-dollar operations to ensure the lowest everyday prices for its consumers.
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