8 Jun 2022

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Innovations in Wal-Mart’s Supply Chain Management

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Academic level: College

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One of the technological improvements includes their fuel efficiency improvements. The fuel economy improvements are attributed to enhanced trailer skirts and tractor aerodynamics. They also added equipment to their trucks designed to save fuel such as auxiliary power units, lighter tag axles, and wide-based single tires. Due to the improvements, the company achieved a 60% improvement in their fleet efficiency ( Britton, 2010) . They have also reduced the number of miles traveled by empty trucks, improved their routing, and the loading of cases and trucks. The trucks have also used fuel-saving technologies such as alternative fuels and improved engine calibration. 

By 2015, Wal-Mart had doubled their fleet efficiency, saved about $1 billion, and avoided the emission of more than 650000 metric tons of carbon IV oxide (CO 2 ) ( Mathers, 2015) . They ensured that no trailer is left half full and that trailers are loaded efficiently so that the maximum amount of goods shipped at a time. The new technologies also focus on reducing the distance from distribution to delivery. It involved mapping routes, finding the best distribution centers between stores and suppliers, and reducing and ultimately eliminating the empty miles. They also sought efficiency through innovation, technology, and collaboration. The trucks were designed to be more fuel efficient, more aerodynamic, and lighter weight. 

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Furthermore, the company designed its stores according to the market needs. The three types of stores include the neighborhood market, Supercenters, and discount stores. Supercenters span about 182000 square feet, have about 300 associates and opened 24 hours. The discount stores span about 106000 square feet, employees about 200 associates, and offer hardware, electronics, home furnishings, apparel, health and beauty aid, and toys ( Our Story, 2017) . The neighborhood markets span about 38000 square feet and employ about 95 associates. They are designed for communities that require merchandise, pharmacy, and affordable groceries. 

References 

Britton, D., (2010). Case Study: Walmart’s Efficiency Goals [Web]. Retrieved from http://www.truckinginfo.com/channel/fuel-smarts/article/story/2010/06/case-study-walmarts-efficiency-goals.aspx 

Mathers, J., (2015). Walmart Vaults past Fleet Efficiency Goals Ahead of Schedule [Web] Retrieved from http://business.edf.org/blog/2015/11/18/walmart-vaults-past-fleet-efficiency-goals-ahead-of-schedule/ 

Our Story. (2017). Retrieved from http://corporate.walmart.com/our-story/our-business 

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StudyBounty. (2023, September 15). Innovations in Wal-Mart’s Supply Chain Management.
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