Introduction
Transportation is essential for supply chain networks in delivering goods from suppliers to stores. Walmart needs a Transportation Improvement Plan (TIP) to enhance the efficiency and capacity of its goods delivery process. The markets, supply chain strategies, and current and future freight flows are all necessary for the development of Walmart TIP. The streamlining of operations, reduction of costs, and improvement of customer satisfaction are possible with the development of TIP. Walmart’s supply chain transportation improvement plan outlines the supply chain strategies, current and future freight flows, the improvement plan, and a multi-year planning horizon.
Organization Overview
As a multinational, Walmart operates a global chain of retail hypermarkets, grocery stores, and department stores. The company’s primary aim is to deliver quality goods at a price that customers can afford (Mohammad, 2021). Walmart is a trusted international retailer that has been in operation for over 50 years.
Its rapid growth has necessitated a reliable supply chain network. Delivery of goods to various markets is only possible with an efficient supply chain network that connects the various stores and hypermarkets around the globe (Pawlicka and Bal, 2021). The efficiency of a supply chain network determines its effectiveness and impacts a company’s market position.
Green Chain and Smart Supply Chain Strategies
The conservation of the environment is a priority for Walmart; therefore, energy usage is a concern, as sustainability is integral to the company’s culture. This is the green chain supply chain strategy adopted by Walmart chain stores. Walmart utilizes renewable energy, as reducing carbon emissions is part of its sustainability strategy (Sambasivan et al., 2009). Moreover, carbon emission reduction is achieved through the use of green packaging. The smart supply chain strategy is employed to enhance the supply chain’s effectiveness by leveraging the latest technologies and collaborating with smart cities (Mohammad, 2021). To improve inventory management, route planning, and IoT-based technologies are employed.
Current Freight Flows
In freight management, Walmart’s current strategy is a private fleet of trucks. The current distribution strategy utilized by Walmart is intensive. The use of ships by Walmart is commonplace in the transportation of goods across borders. The intensive distribution strategy employed by Walmart enables the company to operate consistently worldwide. Every store operates in accordance with the central strategy outlined by the firm (Mohammad, 2021).
Freight Routes
Walmart’s freight lines are essential in the supply chain, as they connect retail stores, distribution warehouses, and suppliers across several geographical regions. The firm retail giant utilizes intermodal transportation, including trucking and railway, as its primary mode of transportation (Mohammad, 2021). In cases where goods need to be imported and exported across international borders, the use of ships is unavoidable. (Wang, 2023) This has seen the retail giant offer products for sale at lower prices, attracting more customers than other leading stores in various regions.
Challenges
The cost of transportation is a significant concern for Walmart, which means that both cost and sustainability concerns determine the choice of delivery method. Major urban regions with heavy traffic increase transportation costs and extend delivery times, negatively impacting customer satisfaction (Wang, 2023). Climate change is exacerbated by transportation’s high carbon emissions, primarily when vehicles that use crude oil are engaged in transportation. Walmart is committed to reducing its environmental impact to uphold its sustainability goals. Furthermore, for customers to be satisfied, delivery must be timely (Sambasivan et al., 2009). Cost-cutting and securing convenient delivery slots are challenges Walmart is facing.
Future Freight Flows
Future freight flows for Walmart could be changed by implementing improvement projects. This action enables greater efficiency and improved service delivery, while also reducing the operational cost. Forecasting future freight situations can help protect against freight issues that may arise in years to come (Shi et al., 2023). Solutions for future problematic situations can be developed at present (Pawlicka and Bal, 2021). This helps resolve issues that may arise in the future, thereby averting disturbances and potential failures.
Recommended Improvement Projects
Intelligent Transportation Systems (ITS) help get the required data from infrastructure and vehicles for analysis. The efficiency of the transportation system and capacity building are attained through ITS (Iulia, 2023). Delays are highly costly, but implementing ITS could help avert such issues in advance. Walmart’s capacity to effectively manage transportation operations will increase with the integration of ITS solutions(Sambasivan et al., 2009). The use of ITS encompasses real-time tracking, route optimization, and automatic data collection, enabling improved decision-making.
By collaborating with smart cities, Walmart will be able to leverage its infrastructure and data analytics capabilities to mitigate traffic delays during the delivery of goods. Stock delivery schedules could be optimized using data from smart cities (Iulia, 2023). This is essential, especially in reducing fuel consumption, and it also cuts the need to hire more staff (Hofman et al., 2011). The issue noted here is that the operational costs are significantly reduced.
In particular, for long-distance shipments, investigating alternate modes of transportation, including rail and intermodal shipping, can lower costs and minimize greenhouse gas emissions. Road transport relies on crude oil, which emits harmful fumes such as carbon monoxide and nitrogen dioxide, contributing to the depletion of the ozone layer (Berthold, 2019). However, climate change is managed through alternative modes of transport. Walmart’s commitment to sustainability may be backed up by implementing a sustainable fleet management system (Shi et al., 2023). This includes the use of electric and hybrid vehicles, which utilize electricity as their primary power source.
The effectiveness of warehousing will be improved, and handling and storage expenses will be decreased by utilizing cutting-edge technologies such as robotic automation and warehouse management systems. When picking items specified in an order, warehouse automation allows staff to quickly and easily locate the goods to be transported (Lee, 2004). The picking and re-picking of goods is made faster, which reduces the time taken in the transportation process. Helpful technologies can be installed in automated warehouses, which helps reduce errors committed in the warehouses (Mohammad, 2021). The accuracy of the processes carried out inside warehouses has increased tremendously since machines replaced human labor.
Multi-Year Planning Horizon
Year 1-2
Creating SMART goals can be implemented, which helps optimize delivery routes by choosing the shortest and most economical routes. Better rates with carriers are negotiated, and a thorough study of the current freight movements is done, which helps eliminate future issues (Shi et al., 2023). With the establishment of SMART goals, it is possible to set timelines and maintain a high standard of accountability (Pawlicka and Bal, 2021). Since the goals are measurable, it engages employees to have the means to determine whether they are on the right path to attaining the set goals.
Year 3-4
Implementing ITS concepts in practice is necessary in the third year, as SMART goals have already been established. Therefore, it is easier to work with smart cities when investigating alternative forms of transportation to save costs and increase efficiency (Pawlicka and Bal, 2021). Other activities could be carried out in the third or fourth year to help collect the essential information from the infrastructure and vehicles. They include streamlining warehouse procedures and experimenting with green fleet management techniques (Iulia, 2023). The conversion of the engines from combustion to electric may take time and requires at least a year.
Years 5-6 and Years 7-10
According to Berthold (2019), activities aimed at increasing network optimization are undertaken in the fifth or sixth year, helping to shorten distances and improve the delivery of goods. Additional activities conducted in the fifth and sixth years include evaluating the success of completed projects and adjusting market strategies (Lee, 2004). In years 7-10, the operations of the transport system are improved, and any new trends emerging in the industry are assessed. Lastly, in years 7-10, the effectiveness and sustainability of the entire supply chain are assessed.
Conclusion
The development of TIP positions Walmart favorably regarding its supply chain. Examining the firm’s background, it is notable that it has grown from a small start to a multinational, with retail stores established worldwide. Walmart has adopted smart cities and green supply chain strategies to advance its sustainability agenda and leverage cutting-edge technology.
The freight flows of Walmart indicate that crude oil combustion engines are heavily used. However, the future will replace combustion engines with smart energy ones. The improvement would involve integrating technology with more effective plans to create a superior supply chain strategy that considers sustainability while ensuring quality and efficiency.
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