Preparing your company to sell products to Wal-Mart

Before mass marketers sign the dotted line on your vendor agreement they will thoroughly investigate your company and be sure that it is financially stable and capable of fulfilling its obligations. Large mass marketers sometimes hesitate to do large-scale business with a very small firm unless they feel secure about its ability to fufill orders and maintain sufficient cashflow. While rapid growth sounds good it can also be the kiss of death if a business is under-capitalized. We’ll discuss that in greater detail in another post.
Most mass marketers will require you to be listed with Dun & Bradstreet and will review your report before moving ahead with the process. Wal-Mart requires potential suppliers to purchase the report ($75) themselves. Firms that are rated as “risky” will not be invited to complete a vendor agreement and instead, will receive notification that they must improve their financial position before moving ahead. Several times we have seen where potential suppliers have been rejected due to a Dun & Bradstreet rating of 7 or more. Large retailers are generally very strict about this and don’t allow much wiggle room at all so be sure to check your D&B report beforehand.