Retail giant Walmart will now offer its proven technology to other businesses. The company’s artificial intelligent (AI) route optimization will allow companies to enhance the efficiency of middle-mile logistics and keep products in stock.
Route optimization offers AI-driven software solutions tailored for businesses across various scales, enabling them to streamline driving routes, enhance trailer packing efficiency, and reduce mileage.
Advanced technology
Leveraging this advanced technology, Walmart successfully mitigated 94 million pounds of CO² emissions, eliminating 30 million unnecessary miles and optimizing routes to avoid 110,000 inefficient paths.
In recognition of this achievement, Walmart was honored with the esteemed Franz Edelman Award in 2023 for this innovative technology’s large-scale implementation and deployment.
Anshu Bhardwaj, senior vice president and chief operating officer, Walmart says: “By adopting our at-scale, AI-powered tech, businesses can eliminate the need and expense of developing their technology and instead focus on what they do best – serve their customers.”
Here’s how Walmart’s technology will assist businesses:
- Enhanced planning for multi-stop truck journeys: AI-powered automated route mapping considers factors such as time, location, and store delivery windows.
- Optimized trailer packing: Maximizing space and preserving the freshness of temperature-sensitive items.
- Timely deliveries: Utilizing weather and traffic data to adapt quickly and ensure punctuality despite external variables.
- Strategic inventory pickup: Planning backhauls on return trips to minimize empty trailer runs, promoting efficiency and sustainability.
- Insightful analytics: Providing operational teams with valuable data on trailer usage, trip metrics, and idle travel distance, facilitating informed decision-making.
Walmart’s innovation mission
In recent months, Walmart has been on a mission – rolling out initiatives to make life easier for customers. Earlier this month, it launched an express on-demand early morning delivery. This is to offer customers parcel delivery fast.
The company is even giving its competitors a run for their money. In February, Walmart’s CFO John Rainey detailed the company’s improvement in its e-commerce profitability in the American market. Sit up Amazon and the like.
Just-in-time inventory back for retailers
Last month, Locate2u reported on a trend where retailers are now at just-in-time inventory management instead of stockpiling as they practiced during the COVID-19 pandemic.
Benefits of just-in-time inventory management
- Reduce waste: Following the JIT inventory management system eliminates excess stock.
- Improves efficiency: JIT ordering stops the company from expenses related to acquiring, handling, and storing inventory. This leads to quicker inventory turnover.
- Minimize costs: Following the JIT model allows a company to spend less on storage due to lower inventory levels.
- Reduces product defects: JIT inventory management streamlines the production cycle. This leads to on-time deliveries, keeping customers satisfied.
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
