Walmart Opens Route Optimization Tech to Businesses

Walmart Opens Route Optimization Tech to Businesses

The move to sell its proprietary AI-driven software contributes to the retailer’s business diversification strategy.

The route optimization software marks a new offering sold through Walmart Commerce Technologies, a business unit that 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 to become more than just a retailer, a company spokesperson said in an email to the sister publication Supply Chain Dive.

“We’re now an advertising business, a data company, a financial services provider, a Software as a Service (SaaS) provider, and more,” the spokesperson said. “By evolving our business model, we can make an even bigger impact.”

The spokesperson said that selling its route optimization technology to other companies will contribute to those businesses’ efforts in reducing empty fleet miles and emissions.

Here are some ways Walmart is leveraging route optimization technology to reduce emissions.

  • 94 million
    Pounds of avoided CO2 emissions
  • 30 million
    Eliminated the number of unnecessary miles driven
  • 110,000
    The number of inefficient paths eliminated

The company did not disclose that clients are now using the software, but the spokesperson noted the retailer has had conversations with fleet operators and lumber and medical device companies.

The amount of money customers can save using Walmart’s technology will vary and will be influenced by several factors, including user operations, the spokesperson said.