Retail giant Walmart announced in its third-quarter 2024 earnings report that by automating its 210 distribution centers and optimizing delivery routes, it has reduced the delivery cost per order by 40 percent in its home market of the United States. At the same time, the company has increased customer satisfaction with its deliveries.
The level of automation in order processing has increased by more than 50 percent, which represents a doubling of automation compared with the same period in 2023. The company’s investments in warehouse automation have intensified in recent years to meet increased customer demands for fast and accurate delivery, reduce delivery costs, and minimize the need to expand its manual warehouses. While the level of automation in warehouse management has increased, delivery routes have also been streamlined and fill rates have risen by up to 20 percent.
Better Delivery Service
Walmart also reports that customers are increasingly willing to pay for faster delivery. As many as 30 percent of customers pay a fee to receive their delivery within one hour, compared to within three hours, which is the standard delivery window. It’s important to note, however, that these deliveries consist largely of groceries. Despite increased efficiency and reduced delivery costs, service levels have improved. The Net Promoter Score (NPS), a measure of customer satisfaction, for Walmart’s deliveries is reported to have reached record levels during the current quarter.
Gigantic Delivery Network
With 210 distribution centers, 9,000 trucks, and more than 11,000 drivers, Walmart’s distribution operations are among the largest in the world. Over the years, the company has made a name for itself as an innovative player in supply chain development, which largely involves applying efficiency-boosting technology, training staff, optimizing processes, and making changes to the supply chain.
2.1 million employees
Since its founding in 1962, Walmart has opened thousands of stores in the United States and expanded internationally. The company’s mission is to use innovation to create a seamless experience so that customers can ”shop anytime, anywhere—online and in stores.” As of this writing, Walmart operates more than 10,500 stores and a large number of e-commerce sites in 19 countries. Of the company’s 2.1 million employees, nearly 1.6 million work in its home market in the United States.
