Walmart targets transport costs

US retail giant Walmart is reportedly evaluating factory-gate pricing and taking over transport arrangements from its suppliers in order to save on transport costs.

 

Walmart has evaluated many of its suppliers’ transport costs and has contacted those where it believes it can make savings. The company’s justification is reported to be to allow its suppliers to focus on their core competencies, i.e. manufacturing goods for Walmart.

 

The move is an extension of the retailer's current trasnport operations, which to date have mainly focused on DC to store deliveries. Walmart will both expand the size of its own fleet and increase the number of subcontractors used. It is also expected that the company will gain better utilisation out of its existing 6,500 trucks and 55,000 trailers.

 

According to analysis by Analytiqa.com, the net result of the move may be increased costs for other retailers: with Wal-Mart pledging to cut prices on 22 items for an average savings of 30%, manufacturers may face increased transportat costs on deliveries to other retailers as they lose scale. These increased overheads are likely to be passed on to other retailers.

You may also like to read:


Comments are closed.

Newsletter

Sign up with your business email address to keep up with the latest industry news from T&L. Newsletter sent every week.

Most Read

Kalmar launches 9-18t lithium battery electric forklifts
Kalmar, part of Cargotec, has introduced a medium electric f...
Technology => efficiency – from MHD magazine
Bart De Muynck Government regulations requiring greater com...
The SMART Distribution Centre opens
Schneider Electric has successfully completed the digital tr...
Australian retail: officially in recession
Phil Chapman “GFC-level terrible.” Those were the wo...
Moving with the times – from MHD magazine
Peter O’Connor Data warehouses are far from new. The term...
Own the future – from MHD magazine
Martin Kohl The distribution centre of the future will need...

Supported By