Create carrier_network_freight.md
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Supply Chain Logistics/carrier_network_freight.md
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# Carrier Network & Freight Management Guide
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**Document ID:** SC-CAR-002 | **Version:** 3.7 | **Owner:** Director of Transportation
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**Effective:** 2025-02-15 | **Review Cycle:** Semi-annual
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## 1. Purpose
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Defines Walmart's carrier tiering, freight procurement, routing, load
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planning, exception handling, fuel surcharge treatment, and carrier
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performance scorecarding.
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## 2. Carrier Tier Structure
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| Tier | Description | Volume Share | Contract Type |
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|---|---|---|---|
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| Tier 1 | National dedicated fleets | 55% | 3-year, fixed + fuel |
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| Tier 2 | Regional LTL/TL partners | 30% | 1-year, indexed |
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| Tier 3 | Spot market / surge | 15% | Spot, dynamic |
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## 3. Freight Procurement
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### 3.1 RFP Cadence
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- National RFP every **36 months**, lanes ≥ $500K annual spend.
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- Regional RFP every **12 months**.
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- Spot quotes via **dynamic load board** with 15-minute bid window.
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### 3.2 Rate Components
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- Linehaul (per mile or flat lane rate)
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- Fuel surcharge (indexed to DOE national diesel average, updated weekly)
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- Accessorials: detention ($65/hr after 2 hrs), lumper, reconsignment,
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trailer pool, hazmat.
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- Minimum charge: 1,000 lbs or 10 linear feet.
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## 4. Route Optimization
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- **Primary routing** uses lane density + carrier capacity model.
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- **Dynamic re-routing** triggered when:
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- Weather alert (NOAA severity ≥ moderate)
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- Highway closure ≥ 2 hours
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- Carrier tender rejection
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- Route optimization savings target: ≥ 6% YoY on cost per mile.
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## 5. Load Planning
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| Trailer Type | Max Weight | Max Pallets | Typical Use |
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|---|---|---|---|
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| 53' dry van | 44,000 lb | 26 | General freight |
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| 53' reefer | 43,000 lb | 26 | Cold chain |
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| 48' flatbed | 48,000 lb | N/A | Building materials |
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| Pup (28') | 22,000 lb | 14 | Store delivery |
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Load planning rules:
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- Multi-stop loads limited to 4 stops for dry, 2 for reefer.
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- Pallet height ≤ 110" for double-stack.
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- Weight distribution: 60% front, 40% rear for stability.
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## 6. Exception Management
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| Exception | SLA | Owner |
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|---|---|---|
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| Tender rejection | Re-tender within 30 min | Logistics Coordinator |
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| Late pickup (> 2 hrs) | Escalate to carrier mgr | Transportation Mgr |
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| In-transit damage | File claim within 24 hrs | Claims Specialist |
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| Trailer breakdown | Recover load within 4 hrs | Regional Ops |
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| Temperature excursion | Quarantine + QA review | Food Safety |
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## 7. Fuel Surcharge (FSC) Methodology
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- Base fuel price: $1.25/gal (contract baseline).
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- FSC = (Current DOE average − Base) × miles / 6.0 mpg.
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- Recalculated **every Monday** using EIA weekly diesel retail price.
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- Cap: FSC cannot exceed 32% of base linehaul rate without renegotiation.
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## 8. Carrier Performance Scorecard
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| Metric | Weight | Minimum |
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|---|---|---|
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| On-time pickup | 25% | 96% |
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| On-time delivery | 30% | 97% |
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| Tender acceptance | 15% | 92% |
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| Cargo claims ratio | 15% | < 0.4% |
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| Invoice accuracy | 15% | 98% |
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Carriers scoring below 85 for two consecutive quarters enter a
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**Corrective Action Plan (CAP)** with 90-day remediation window.
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## 9. Escalation
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- Operational: Transportation Manager (real-time)
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- Contractual: Director of Transportation (24 hrs)
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- Network: VP Supply Chain (4 hrs)
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