Optimizing Walmart Operations to Drive Efficiencies and Profitability

The Challenge
An emerging beverage brand struggled to efficiently service Walmart purchase orders. Orders were arriving throughout the week as small parcel shipments, requiring LTL delivery to multiple ship-to points—driving up operational costs, triggering compliance fines, and constraining growth.
The Solution
Hatchery stepped in to redesign the order and shipping cadence, collaborating directly with Walmart stakeholders to implement a consolidated purchase order flow. This single-source PO strategy was aligned with an updated forecast and optimized cadence—reducing fragmentation, minimizing fines, and improving execution across the board.
Key Takeaways
Following implementation, the brand eliminated all supply chain fines (previously accounting for 7% of annual COGS), stabilized instocks near 99%, and unlocked +16% sales growth. Prior to this change, the brand had been losing ~10% of potential sales due to an instock rate hovering around 75%.
The Results Speak for Themselves
Supply Chain Cost Avoidance
Eliminated fines equal to 7% of annual cost of goods through operational alignment and cadence changes
Post-Implementation Sales Growth
Achieved consistent double-digit growth after increasing instocks from 75% to nearly 99%
Sustained Instock Rate
Improved instocks by +2,300bps (from 75.7% to 98.9%), ensuring product availability and sales capture
Ready to unleash your brand?
Contact Hatchery Group today to explore how we can elevate your brand to new heights.
