In Bentonville, it’s known as “the annual open call for products,” but in layman’s terms it’s a month-long virtual audition of entrepreneurs looking to take their business to the next level and become a supplier to the largest retailer in the world, Walmart.
Given the company’s recent $350 billion commitment to invest in products made, grown or assembled in the U.S. in order to support more than 750,000 new jobs, this year’s casting call has taken on a whole new urgency, with the company now accepting initial applications for the next month, until April 30.
As it launched the program Walmart said it was looking to spark a revitalization of U.S.-based manufacturing as well as the economic and consumer benefits that would go with it.
“By making production more affordable and feasible in the United States, we can bring our customers more U.S.-made products and manufacturers can create more jobs in America,” the company says in its application materials.
“Open Call is like watching the American Dream play out in real time,” said Walmart Senior Vice President for Global Sourcing and U.S. Manufacturing Laura Phillips. “You see on full display the spirit and energy of new ideas and the hope of what could be — founded on creativity, hard work and self-belief. It’s inspiring,” she added, noting how significant the opportunity is for small businesses.
And The Winner Is …
According to 2017 Open Call applicant-turned-supplier Marisa Sergi, the founder of Red Head Wines, it can be daunting to pitch a company that does $500 billion in sales through its website and over 11,000 global stores, but she felt it was a once in a lifetime opportunity.
“When you pitch Walmart, it’s important to understand how to work the best of Walmart and analyze what the benefit is for them and how you’ll bring them value,” Sergi said in a profile interview. “You can’t just pitch your product and talk about your product and who you are and your business and how it’s going to work. You have to think about who you’re talking to; you need to provide as much value as possible and the product sales will come later.”
Indeed the sales did come. In Sergi’s case, her little Ohio-based startup now sells its wines in over 3,000 stores.
Other Open Call success stories include Hugh and Nicole Jarratt’s ribbed plastic dishes, which they call “the official plate of taco night.” It’s only one of several inventions the couple made. Walmart loved the idea and, as the saying goes, the rest is history.
To be sure very few new products will be sold across Walmart’s entire fleet of stores or digital marketplace. Most will start on a limited trial basis in a few stores or in a particular reason just to see how things go but also to give companies the time and funding they need to scale production if things progress.
It’s A Process
Pitching your idea to Walmart is not just daunting, it’s also a bit complicated too, and the company has laid out a fairly extensive online tutorial to help guide applicants through the process and over the hurdles involved in actually becoming a Walmart supplier.
To do so, Walmart’s supplier details page says interested companies must be prepared to meet at least nine key requirements prior to accepting an invitation to pitch in person in round two in June, including: competitive pricing; a federal tax ID number, at least $2 million in liability insurance, a Dun & Bradstreet number and credit profile, the ability to submit products for third-party testing, Electronic Data Interchange (EDI) and more.
For its part, Walmart said it is always adding to its roster of 2,800 suppliers that have the “expertise and a desire to deliver quality products and services at scale,” noting that it has over 220 million customers a week passing through its stores and website.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More