Walmart Stores Inc, the world’s largest retailer, is seeking to take over US transportation services from suppliers in an effort to reduce the cost of hauling goods.
The company was contacting all manufacturers that provide products to its more than 4,000 US stores and Sam’s Club membership warehouse clubs, said Kelly Abney, Walmart’s vice president of corporate transportation in charge of the project. The goal was to take over deliveries in instances where Walmart can do the same job for less and use those savings to reduce prices in stores, he said.
“It has allowed our suppliers to focus on what they do best — manufacturing products for us,” Abney said. “With lower costs usually come increased sales,” he added.
Walmart is increasing the use of contractors, and its own private fleet of trucks, to pick up products directly from manufacturers and transport the goods to its distribution centres. The plan allows Walmart’s fleet of 6,500 trucks and 55,000 trailers to carry more per truck and improve on-time delivery rates.
