Suppliers who rely on Walmart to transport products from their plants to distribution centers are now faced with a new fee.  In a memo sent to suppliers on July 1st, Walmart noted increased costs in transportation and has adjusted the collect fee including a fuel surcharge. The precipitous decision offended some suppliers who were not provided with notice of additional fees.

During the June Investor Conference, Doug McMillon, CEO of Walmart, stated “We have been working really hard on costs, top to bottom, taking action to get our costs down so that the second quarter looks better than the first quarter.”  Attendees detected the message that Walmart would pass on costs to suppliers.  John Furner, CEO of Walmart U.S, stated “Costs that need to flow through, like cost of product for the fuel or the shipping that it takes to move those, we will pass through.”