Walmart evolves its omnichannel fulfillment network to reduce cost, waste, and emissions

Walmart recently announced new initiatives aimed at reducing waste and creating a more sustainable omnichannel fulfillment network. The retailer is taking several measures to reduce packaging waste and emissions associated with online orders, including:

  • Moving from plastic to recyclable paper mailers
  • Right-sizing cardboard box packaging
  • Giving customers the option to consolidate shipping on eCommerce orders
  • Allowing customers to opt-out of single-use plastic bags for online pickup orders; and
  • Last mile delivery efficiencies to reduce mileage and delivery times

Here is more detail on the specific initiatives that Walmart is implementing:

Transitioning from plastic to recyclable paper mailers

Nearly all orders shipped in plastic mailers from fulfillment centers, stores, and marketplace items shipped with Walmart Fulfillment Services will arrive in recyclable paper bag mailers. This transition is expected to eliminate 65 million plastic bag mailers or more than 2,000 tons of plastic from circulation in the U.S. by the end of the current fiscal year.

Right-sizing cardboard box packaging

Walmart is working with suppliers to optimize product packaging so that it fits better in boxes and reduces empty space. This will help reduce the number of trucks needed for transportation and lower greenhouse gas emissions. In March 2023, Walmart announced a partnership with Packsize, a provider of on-demand packaging automation technology.

Glossary
Walmart Circular Connector

Walmart's Circular Connector is a free, publicly available database of solutions to help brands and retailers adopt recyclable, reusable, and compostable packaging.

Consolidating shipping on eCommerce orders

Customers can now choose to have their items shipped together instead of separately. Batching orders reduces packaging waste and reduces the number of shipments required, lowering emissions.

Option to opt-out of single-use plastic bags for online pickup orders

Customers can now choose to bring their own bags or use reusable bags provided by Walmart for online pickup orders, helping reduce demand for single-use plastic.

Last mile delivery efficiencies

Walmart is using new technologies like electric vehicles and drones to increase the efficiency of last mile delivery. In July 2022, Walmart announced an agreement to purchase 4500 EVs from Canoo Inc for its delivery fleet. Walmart is also partnering with drone delivery company Zipline to pilot drone deliveries of essential items such as over-the-counter medications and vaccines in North Carolina and Arkansas. The drones are expected to help reduce the time it takes to deliver orders and provide greater access to products for customers who may not have easy access to stores.

Expected Benefits

These initiatives are expected to have several benefits for Walmart and its suppliers:

  • Lower costs: By optimizing product packaging and reducing empty space in boxes, Walmart can lower packaging and transportation costs and reduce the number of trucks needed for transportation.
  • Improved customer experience: Rightsized packaging creates a better customer experience by lowering the odds that products are damaged in transit and minimizing waste that households need to recycle or discard.
  • Reduced impact: Walmart has made major commitments to decarbonize and reduce plastic, and these initiatives position the retailer to continue meeting customer expectations while reducing its impact.

View Walmart’s announcement here.

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