There is a long list of technological advances Walmart has made in recent years that has helped it with everything from inventory management to cutting down tasks within the supply chain network to meeting customer demands.

Centralized Databases

A centralized database that houses all inventory information of Walmart discount stores across the world, noting levels of every product. There is also a Retail Link database that improves communication with suppliers and forecasting.

RFID Tracking and Smart Tags

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Walmart uses RFID technology and other smart tags that allow store employees to better track inventory. This plays a critical role in managing where products are and reducing loss. In fact, in 2024 it cemented in a mandate for a wide range of suppliers, enforcing them to have RFIDs within their products. Walmart isn’t the only company pushing for this kind of technology, as the RFID sector is worth billions now. 

Transportation Logistics

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Walmart operates a private fleet of transportation trucks, which actually makes it the largest private motor carrier in North America. In owning this form of transportation, Walmart gets much better control over logistics and timeframes and only has to focus on getting its own products from point A to B. 

As part of its sustainability initiatives, Walmart is aiming to switch to electric vehicles and cut out emissions from its transport fleet by 2024 in the U.S. and Canada. It released a concept for a new semi-truck that has a hybrid powertrain and a centered seat for the driver, among other updated features. 

Patented Smart Devices and Products

Outside of great inventory management and sleek external and internal systems, Walmart’s supply chain strategy involves Innovative patent filings. These include smart shopping carts, electronic imaging devices that sense when inventory levels are dropping, and in-store customer assistance drones.

In-House Software 

Walmart has a My Productivity App for store managers to minimize backroom tasks and because it has a vendor-managed inventory system, it puts more responsibility on suppliers to stay on track. 

The Future of Walmart Supply Chain Management

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There are many ways in which Walmart continues to shift its practices and adopt new technologies to boost its supply chain. Here are a handful of recent moves the company has made.

Robot and Drone Expansion

Another few futuristic endeavors that are bolstering the Walmart supply chain are drones and robots. As of 2024, Walmart is testing the waters with drone delivery in parts of Texas. Not only are these UAVs capable of delivering numerous products, but they cut delivery times from the usual expedited day or two down to 30 minutes or less. 

Prior to drones, Walmart has also introduced autonomous mobile robots into its warehouses over the last couple of years to help out with orders and moving stock. With AI developments happening faster than ever across multiple sectors, it wouldn’t be a surprise to see Walmart implementing other cutting-edge technologies with AI at the forefront soon, too. 

e-Commerce Boom and Ship-from-store

Walmart stores have set such a precedent for e-commerce fulfillment that it’s now offering third-party retailers the chance to work with its supply chain. This gives it yet another step up when it comes to competing with Amazon. Walmart has a notably rigorous application process, lower fees, and fewer suppliers on its platform, which can make it more enticing to other brands. 

In the past, Walmart increased its ship-from-store capacity and expanded its ecommerce space to handle the boom. Walmart’s online sales also jumped 25% year-on-year during the COVID-19 pandemic.    

“Ship from store” means using stores themselves as warehouses for online sales. Walmart has a clear advantage over Amazon with nearly 5,000 stores in 49 states. Shipping costs are low because 90% of Americans live within 10 miles of a Walmart store. 

Improved Sustainability 

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There are several ways in which the Walmart supply chain aims to reduce its carbon footprint. Walmart’s Sustainability Hub has not only committed to reducing direct greenhouse emissions but also to slash the emissions created by the company’s supply chain.

One of its sustainability initiatives is Project Gigaton, which aims to reduce its environmental impact by preventing one billion metric tons of greenhouse gasses from Walmart’s global supply chain from entering the atmosphere by 2030. 

Walmart is currently on track to reach that goal. We can expect to see increased use of renewable energy sources and recycling programs to reduce waste. It is also utilizing solar and wind power to lessen its footprint and help the company become fully renewable energy-powered by 2035. 

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