Walmart believes it can ship and transport product more efficiently than its suppliers can, and so, the company is looking to take over delivery service from many of the manufacturers that provide goods to its U.S. stores.
According to an article at Bloomberg.com, Walmart is currently negotiating this new plan with its suppliers. The company intends to increase the use of contractors, as well as its own private fleet of trucks, so that it can pick up products directly from manufacturers and transport the goods to its distribution centers and stores.
Of course, improved delivery efficiency has multiple benefits for Walmart, including lower supply chain emissions and reduced supply chain costs. These benefits will, in turn, translate into lower prices for Walmart shoppers, says Kelly Abney, Walmart’s vice president of corporate transportation in charge of the project.
But, how will this plan affect suppliers? (more…)