In the retail industry, or simply in the world as a whole, Walmart remains a dominant force, setting standards and innovating supply chain practices. In order to navigate Walmart’s systems and meet its expectations, suppliers need to be familiar with the Walmart-specific terminology. In this installment of our Category Management Glossary series, we focus on Walmart-centric terms and acronyms that every supplier should know.
1. 3PL (Third-Party Logistics)
Walmart suppliers frequently use 3PL providers to outsource logistics activities, from transportation to warehousing, ensuring efficient procurement and delivery processes.
2. APDP (Accounts Payable Dispute Portal)
Part of Retail Link, APDP allows suppliers to address discrepancies in payments or deductions. It’s a valuable tool for managing financial accuracy and resolving disputes efficiently.
3. APIS (Accounts Payable Invoice System)
APIS is a tool within Retail Link used to manage and track invoices and payments. It streamlines financial operations for Walmart suppliers.
4. ASN (Advanced Shipping Notice)
This electronic notification informs Walmart of an incoming shipment, detailing its contents and expected arrival time. Accurate ASNs ensure smooth receiving processes and reduce discrepancies in Walmart’s supply chain.
5. BOL (Bill of Lading)
The BOL is a legal document issued by a carrier that confirms receipt of goods for shipment. It serves as a critical piece of documentation in Walmart’s supply chain operations.
6. COGS (Cost of Goods Sold)
This metric represents the direct costs associated with producing goods sold by a supplier. Understanding and managing COGS is essential for profitability in Walmart’s competitive supply chain.
7. CP (Collect Pickup)
With CP, Walmart assumes responsibility for picking up goods directly from a supplier’s location. Suppliers must ensure readiness and compliance with Walmart’s logistics requirements to avoid disruptions.
8. CPFR (Collaborative Planning, Forecasting, and Replenishment)
This collaborative strategy enables Walmart and its suppliers to share data and insights to optimize supply chain efficiency. CPFR fosters transparency, ensuring accurate demand planning and inventory management.
9. DSD (Direct Store Delivery)
DSD bypasses Walmart’s distribution centers, allowing suppliers to deliver products directly to stores. This method is common for perishable goods and can help streamline the supply chain for certain categories.
10. EDI (Electronic Data Interchange)
EDI is the backbone of Walmart’s digital communication with suppliers. It facilitates the electronic exchange of documents like purchase orders, invoices, and shipment notifications, ensuring efficiency and accuracy in supplier transactions.
11. FCL (Full Container Load)
For suppliers shipping large volumes, FCL allows a single supplier’s goods to fill an entire container, optimizing costs and logistics efficiency.
12. GRS (Global Replenishment System)
Walmart’s GRS manages inventory replenishment across its global supply chain. Understanding how GRS works helps suppliers align their production schedules and maintain consistent product availability.
13. LTL (Less Than Truckload)
This shipping method is ideal for smaller shipments that don’t require a full truckload. It offers cost-effective logistics solutions for suppliers with variable product volumes.
14. MABD (Must Arrive By Date)
MABD is the specific date by which suppliers must deliver shipments to Walmart’s distribution centers. Failing to meet this deadline can lead to missed inventory needs and financial penalties, underscoring the importance of precise logistics planning.
15. OGP (Online Grocery Pickup)
Walmart’s OGP service allows customers to order groceries online and pick them up at designated store locations. As this service continues to grow, suppliers must account for its impact on inventory forecasting, packaging requirements, and category strategies.
16. OTIF (On-Time, In-Full):
This performance metric evaluates a supplier’s ability to deliver products within the agreed timeframe and in the correct quantities. Walmart uses OTIF to ensure operational efficiency and maintain in-stock levels for its customers, making it a critical measure for supplier success.
17. Retail Link:
Retail Link has long been a cornerstone of Walmart’s supplier ecosystem, providing access to critical tools, sales data, and reports essential for managing replenishment, tracking inventory, and analyzing sales trends. However, Walmart is transitioning to a more advanced platform. In 2024, Walmart began replacing the Decision Support System (DSS) within Retail Link with Scintilla (formally Walmart Luminate).
18. Scintilla:
As Walmart’s rebranded insights ecosystem, formerly known as Walmart Luminate, Scintilla will officially launch in 2025. The name, derived from the Latin word for “spark,” symbolizes the transformative power of granular insights to ignite big ideas. Suppliers can leverage Scintilla for access to detailed data that drives actionable decisions and enhances category performance.
19. SQEP (Supplier Quality Excellence Program):
SQEP sets performance standards for product quality and delivery accuracy. Walmart uses this initiative to align suppliers with its stringent operational goals, driving improvements across the supply chain.
20. UPC (Universal Product Code):
A key component of retail inventory management, the UPC is a barcode symbology used to identify and track trade items across Walmart’s stores and distribution centers.
As Walmart continues to refine its processes and expand its digital capabilities, suppliers must adapt to stay competitive. These terms represent the tools, metrics, and systems at the heart of Walmart’s operations, and understanding them is essential for success. With that said, they are by no means all the words one must know for a career in Category Management! For a complete reference, download our full CatMan Glossary ebook here: