AuthorNathan Perez, RUSCA Blog Committee Walmart has developed into a leading member of the E-commerce industry. Walmart is strict when it comes to supplier deliveries. Walmart required 98% of the suppliers' deliveries to be on time and in full, but they have since relaxed them by lowering their demands to 90% on time and 95% in full. These new demands come with great hope for suppliers since before this, if the delivery wasn’t on time or in full, the supplier would be subject to a fine. The logistics industry is always unpredictable since trucks can break down or deliveries can be delayed by traffic, so mandating 98% was extremely tough on vendors.
Walmart has also cut costs to Last Mile Shipping. Back in November of 2023, Walmart began to add parcel stations in major consumer states which have since cut Last Mile shipping costs by 20%. The cutting of these costs has been a success for their consumers as they have more time to order and have a greater assortment of merchandise. While on the flip side, it has become more efficient and easier to distribute online orders (Jennifer McKeehan). Walmart’s parcel stations have automated fulfillment centers and have created twice the capacity and throughput at the same footprint (Rainey CFO). Rainey further states that the parcel stations are a tremendous benefit to the efficiency of delivering packages. Walmart, trying to keep up with major competitors like Target and Amazon, has added early morning delivery services. Walmart wants their customers to have shopping personalized and tailored to the customer’s lifestyle. The addition of early morning delivery adds to the already established services of curbside pickup, late-night express delivery, and on-demand delivery. In addition, Walmart and FedEx have reached an agreement which allows for lower discount rates for members of the Walmart Marketplace. The announcement comes after UPS became a supported carrier for Ship with Walmart. The lower rates will allow companies to use the Marketplace to save costs and Walmart also has benefits for their members to use the fulfillment Services. The new sellers will see a 50% off storage fee and a 25% off fulfillment fee for 90 days. Walmart will continue to try to steal e-commerce market share from its competitors like Amazon and Target. Walmart continues to deal with its large competitor, Amazon. They have taken action to lower costs, be more lenient with suppliers, and even be more understanding to their customers. The effort Walmart is producing to become the leader in e-commerce has sparked rivalry in the industry. The competition of Amazon, Walmart, and Target will be exciting for all supply chain enthusiasts. Sources: https://www.supplychaindive.com/news/walmart-adds-early-morning-delivery-option/709771/ https://www.supplychaindive.com/news/walmart-parcel-stations-stores-last-mile-delivery/700379/ https://www.supplychaindive.com/news/walmart-marketplace-fedex-ground-discounts/707648/ https://www.supplychaindive.com/news/walmart-last-mile-delivery-fulfillment-cost-reduction/708379/ https://www.wsj.com/articles/walmart-eases-supplier-delivery-demands-as-stocking-pressures-recede-b2a93505?mod=logistics_more_article_pos5 https://marketplace.walmart.com/solutions-providers/ Comments are closed.
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April 2024
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