ABF may benefit from new Wal-Mart shipper policy

A move by Wal-Mart Stores Inc. to tighten deadlines will create changes throughout national and global retail supply channels and could prove a benefit for trucking companies like Fort Smith-based ABF Freight System, according to a recent report by The Journal of Commerce.

“Wal-Mart is at it again. Striving to improve supply chain efficiency, the world's largest retailer is imposing requirements that, as many shippers and carriers scramble to comply, will have a far-reaching industry impact,” the trade publication noted in a press release calling attention to its story. "Transportation carriers across the country are offering special help to get suppliers' goods to Wal-Mart. Other retailers are watching closely as the company — known for its grasp and control of its supply chain — further tightens management of its distribution channels.”

Wal-Mart began its strongest delivery requirements yet for U.S. suppliers on Feb. 1. The new system imposes new deadlines and strict penalties for suppliers, according to the article.

“As of last week, U.S. companies shipping goods to Wal-Mart distribution centers must begin to deliver within a four-day window leading up to a “must arrive by date,” or what the company calls its MABD,” noted the story.

The journal provides a big picture view of the new policy with this explainer: “The MABD requirement is a loading-dock-level extension of Wal-Mart’s overarching strategy to accelerate “speed to market” by streamlining sourcing, procurement and inbound transportation and reducing inventory. It follows and complements many supply chain initiatives, from increasing its use of radio frequency identification technology to hybrid trucks.”

The journal story suggests the new policy will require trucking companies and other shippers to readjust the process so that they ensure freight between a supplier and a Wal-Mart distribution center meets the new deadline targets. The new system may also result in shippers allowing Wal-Mart trucks to pick up freight directly from the shipper’s dock.

And trucking companies “that can meet the commitments” could see improved traffic, according to the story, which mentions Averitt Express and ABF Freight System as two trucking companies with Web sites focused on MABD compliance.

The story reports: “ABF created an online MABD compliance planner that helps shippers plan production and shipping schedules for each order based on its MABD. The system can automatically flag Wal-Mart shipments for expedited service.”

(Link here for the full story and to follow links to other Wal-Mart supply chain stories produced by The Journal of Commerce.)