Dive Brief:
- Walmart is selling its proprietary artificial intelligence route optimization technology to businesses seeking to reduce their transportation and shipping costs, the retailer announced March 14.
- The AI-driven software is designed to optimize driving routes, pack trailers efficiently and minimize miles traveled, which will translate to lower emissions and cost savings.
- Since the technology has proven effective in reducing emissions and lowering Walmart’s transportation expenses, buyers can avoid developing similar technology themselves and experience its immediate benefits, Anshu Bhardwaj, SVP and COO, Walmart Global Tech and Walmart Commerce Technologies, said in the announcement.
Dive Insight:
The route optimization software marks a new offering sold through Walmart Commerce Technologies, a business unit that also sells the retailer's store fulfillment technology.
Walmart enters a crowded field of vendors, including Route4Me and LogiNext, selling route optimization technology. Brokerage giant C.H. Robinson Worldwide’s Navisphere Optimizer also touts an ability to generate savings of an average of 8% or as much as 30%.
Despite competition, Walmart views the move as part of its evolution in becoming more than just a retailer, a company spokesperson said in an email to sister publication Supply Chain Dive.
“We’re now an advertising business, a data company, a financial services provider, and a Software as a Service (SaaS) provider, and more,” the spokesperson said. “By evolving our business model, we can make an even bigger impact.”
Selling its route optimization technology to other companies will contribute to those businesses’ efforts in reducing empty fleet miles and emissions, the spokesperson said.
Here are some of the ways Walmart is leveraging route optimization technology to reduce emissions.
The company did not disclose clients now using the software, but the spokesperson noted the retailer has had conversations with fleet operators, lumber and medical device companies.
How much money customers can save using Walmart’s’ technology will vary and will be influenced by several factors as well as a user’s operations, the spokesperson said.
