In today’s world of inbound freight management demands, it is easy to get wrapped up in the hype over the Amazon effect. Essentially, Amazon’s continuous push for world domination is forcing shippers and carriers to rethink their strategies. However, another effect exists-the Walmart Effect. The Walmart Effect refers to the brick-and-mortar Giants capability to enact changes on a global scale through its vast network, including inbound freight management capabilities. For shippers, the Walmart Effect is tantamount to understanding how proactive management of inbound freight contributes to success in their organizations.
The Walmart Effect is a complex topic. As the brick-and-mortar Giant has moved into the world of e-commerce, it has developed relationships with third-party resellers. Amazon has followed suit, but Walmart is taking its demands to a new level. In fact, Walmart is changing its delivery expectations for suppliers, requiring them to deliver goods on time and within Amazonesque timeframes. In other words, Walmart is moving full steam ahead toward becoming a strong competitor with Amazon, requiring two-day delivery on 87% of shipments, and suppliers using LTL shipping must hit a 70% on-time threshold. Unfortunately, this will require suppliers and vendors to redevelop their freight shipping systems and speed along production, which will naturally lead to an expectation among other reseller partnerships to except even faster delivery.
Take a moment to consider inbound freight management demands. Effective inbound freight management rests on integrated systems and collaboration between suppliers and shippers. With Walmart investing in technology and preparation for online grocery pickup and delivery services, reports the Wall Street Journal, the effect on vendors will be extensive. As a result, the inbound freight management demands of Walmart will carry over into similar inbound freight management demands for other shippers. Ultimately, as Walmart moves to stay competitive with Amazon, shippers will see vendors and suppliers expect greater accuracy in dock scheduling, better control over inbound freight management and revisions to their existing inbound freight routing guides.
Shippers looking to stay competitive with Walmart and Amazon can learn from the experiences of the retail giants. Some of the best practices to remain competitive and take advantage of Walmart’s commitment to a faster inbound freight management schedule include:
Stay in control of all shipments, including inbound and vendor freight.
We’ll help you find the right carrier to help you stay on time and budget.
Manage your Inbound and Outbound OTR freight shipping needs and data.
Walmart’s commitment to stay competitive with Amazon is having a profound impact on the industry. Both Walmart and Target shares have risen at least 12% over the last 12 months, reports Forbes, and Amazon shares have raised just over 6%. Traditional retail, namely brick-and-mortar retail stores, are becoming more focused on supplementing e-commerce, not just beating, and as Walmart and other major retailers look for ways to reduce costs and stay competitive, vendors and suppliers will naturally evolve. This evolution must carry over for shippers that also hope to remain competitive and maintain relationships with existing suppliers and vendors.
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