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Client Success Story

Freight costs were quietly capping growth.
We fixed the network, not just the invoice.

This plastics materials manufacturer's elevated Freight Factor was limiting its ability to win incremental feature programs and new item placement at Walmart. NNG partnered with Walmart's Supply Chain Optimization team to audit item-file data, consolidate distribution, and restructure the brand's ship-point network.

Supply Chain & ReplenishmentWalmart
Our Results
$4.5M
Annual freight cost savings for Walmart
14.5%
Freight Factor achieved, down from 28%
14%
Freight Factor in a second engagement, down from 26%
Category
Plastics Manufacturing
Retail Channel
Walmart
Services
Supply Chain & Replenishment
Engagement
Ongoing
Chapter One — Closing the Freight Factor Gap

An elevated Freight Factor was costing more than freight.

When this partnership began, an elevated Freight Factor was limiting the brand's ability to win incremental feature programs and new item placement at Walmart. NNG performed a comprehensive item-file audit, comparing the brand's shipping dimensions against Walmart's system data to identify gaps, and used that same audit to confirm load size and cube accuracy on routing requests.

From there, NNG worked with Walmart's Supply Chain Optimization team to consolidate the brand's distribution center portfolio, moving entire product lines from one location to another and consolidating LTL shipments into fuller loads. NNG also worked with Walmart to adjust review-day and vendor pool truckload settings so shipments moved in full truckload quantities instead of partial loads.

28%
Starting Freight Factor
14.5%
Freight Factor after optimization
$4.5M
Annual cost savings for Walmart
Chapter Two — Expanding the Network

One distribution center, then a fully restructured network.

In a separate engagement, this brand was shipping all 5 SKUs for a department from a single distribution center to all 42 Walmart distribution centers, carrying a 26% Freight Factor. NNG worked with Walmart's Supply Chain Optimization team to help the brand set up and open a second production facility, then partnered again with that team to add ship points to Walmart's National PO Program.

The result was a restructured network: instead of servicing 42 distribution centers from one location, the brand now services 2 Import Fulfillment Centers (IFCs), one from each ship point, reducing transportation costs for both the brand and Walmart.

26%
Starting Freight Factor
14%
Freight Factor after optimization
42
Distribution centers serviced from one location, before
2
Import Fulfillment Centers servicing the network, after
I think you're the best broker I've worked with. If I am in a situation to recommend someone, I will recommend you or your team.

Walmart Employee

12-Year Tenure, Multiple Roles

Work With NNG

NNG is a proven and trusted partner
to Walmart's Supply Chain Optimization team.

Let's start with a conversation about your Freight Factor, your distribution network, and what a connected supply chain strategy could save.