Walmart has cut its U.S. net delivery cost per order by 40% in Q3, attributed to delivery densification, increased expedited delivery orders, and supply chain automation, while simultaneously handling a larger volume of orders with increased automation in fulfillment centers. The retailer’s store-fulfilled delivery sales surged nearly 50% year over year, surpassing a $2.5-billion monthly run rate. PRIMO’s freight and logistics solutions can address similar challenges faced by other shippers striving to optimize their delivery operations and reduce costs, leveraging advanced technology and personalized customer service to enhance efficiency and scalability.

Walmart Reduces Delivery Costs

• Cost Reduction: Walmart slashed its U.S. net delivery cost per order by 40% in Q3 for the third consecutive quarter.
• Key Factors: Achieved through delivery densification, increased penetration of paid expedited delivery orders, and supply chain automation.
• Increased Efficiency: Orders per delivery increased 20% year over year, leading to more cost-efficient and productive driver routes.
• Automation: Over 50% of Walmart’s fulfillment center volume is now handled with automation, double the amount from the previous year.
• Sales Growth: Store-fulfilled delivery sales jumped nearly 50% year over year, surpassing a $2.5-billion monthly run rate.

Reference: Walmart slashes US delivery costs by 40% per order | Supply Chain Dive