Walmart Sharing AI-Powered Logistics Solution With Other Businesses

Retailer’s proprietary Route Optimization tool helps enhance the middle mile

3/14/2024

Walmart's Route Optimization tool can now help other businesses improve their logistics operations.

Walmart is making it possible for other businesses to use its AI-powered route optimization product for the first time ever. With the move, the retailer is aiming to strengthen retail everywhere and enhance the efficiency of the middle mile by allowing businesses to keep their customers’ desired products in stock more consistently.

The Route Optimization tool will be available as a Software as a Service (SaaS) solution through Walmart Commerce Technologies, and will help businesses of all sizes optimize driving routes, pack trailers more efficiently and minimize miles traveled. According to Walmart, using the technology has allowed it to avoid 94 million pounds of CO2 by eliminating 30 million unnecessary miles driven and optimized routes to bypass 110,000 inefficient paths.

“We have invested significant time, resources and operational knowhow into building solutions like Route Optimization, but that can be a barrier for many businesses,” said Anshu Bhardwaj, SVP and COO, Walmart Global Tech and Walmart Commerce Technologies. “By adopting our at-scale, AI-powered tech, businesses can eliminate the need and expense of developing their own technology, and instead focus on what they do best – serve their customers.”

Route Optimization offers:

Better planning for a truck’s multi-stop journey — AI-driven automated route mapping considers factors such as time, location and store delivery windows.
Trailer packing in the most efficient way — not only maximizing space but also helping to ensure temperature-controlled items stay fresh.
Assurance that stores receive deliveries on time by leveraging weather and traffic patterns and quickly pivoting as needed.
Strategic planning for inventory pickup (backhauls) on return trips from deliveries to ensure trailers are never empty, ensuring efficiency and a greener footprint.
At-a-glance insights such as trailer usage, trip time and distance traveled without cargo to help operations management teams make faster, more informed decisions.

Each week, about 255 million customers and members visit Walmart’s 10,500-plus stores and numerous e-commerce websites in 19 countries. With fiscal year 2024 revenue of $648 billion, Bentonville, Ark.-based Walmart employs approximately 2.1 million associates worldwide. Walmart U.S. is No. 1 on Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named Walmart one of its Retailers of the Century.