Trucking companies in Walmart Transportation’s network have recently started receiving emails about Walmart’s new third-party logistics offering. This initiative signals the retailer’s deeper expansion into freight services that it announced in August, leveraging its existing logistics network as an offering to its Walmart Sellers.
The emails, sent to select carriers, introduce Walmart’s brokerage program and outline the benefits of participation.
“We’re connecting with a select group of carriers like yourself to embark on an initiative that will transform the way we deliver to our customers. By joining us, you’ll have the opportunity to secure steady freight and play a crucial role in ensuring our freight reaches all our customers,” said the email obtained by FreightWaves.
Carriers are directed to a website to begin the onboarding process, with additional guidance provided as they complete each step. The communication invites interested carriers to reach out for details.
To qualify, carriers must meet requirements including operating over 10 but under 1000 trucks, maintaining at least five consecutive years of operating authority, and carrying $1 million in liability insurance and $100,000 in cargo insurance. Additionally, carriers must have 53-foot dry vans, reefers or flatbeds, meet Walmart’s safety standards – specifics of which FreightWaves has not confirmed – and ensure that drivers use smart devices for tracking purposes.
Sources close to the new service say Walmart’s brokerage segment is still in stealth mode as it takes its first steps toward becoming a competitor in the 3PL space.
Walmart takes on Amazon’s fulfillment services
The business endeavor falls under Walmart Fulfillment Services (WFS) which holds broker authority under MC#1096733 and freight forwarding authority under FF#37548. Walmart last year announced its freight forwarding services, focused on cross-border and other international shipments for its marketplace sellers.
Walmart’s entry into brokerage has significant implications for the 3PL industry. By leveraging its vast logistics infrastructure and private trucking fleet – one of the largest in North America – Walmart could disrupt traditional brokerage models. The retailer’s ability to consolidate freight from its marketplace sellers and integrate with its existing distribution network may present an attractive value proposition for shippers seeking cost-effective and reliable logistics solutions.
The expansion also marks another step in Walmart’s ongoing competition with Amazon.
Walmart Fulfillment Services positions itself as an alternative to Amazon’s Fulfillment by Amazon (FBA), allowing third-party sellers to utilize Walmart’s warehousing and shipping capabilities. As more sellers migrate their inventory to Walmart’s ecosystem, Amazon could see a decline in freight volume moving through its logistics network. A key differentiator for Walmart is its extensive network of physical stores, which serve as mini-fulfillment centers. This allows for faster last-mile delivery and reduced transportation costs compared to Amazon’s reliance on regional fulfillment centers and its Amazon Freight network.
Amazon’s FBA model has faced criticism for high storage fees and long-term penalties, whereas Walmart has positioned WFS as a cost-effective alternative with a simpler pricing structure.
RELATED: ‘If we used FBA all the time, we’d be toast’
RELATED: What does Walmart’s GoLocal service mean for last-mile delivery?
With Walmart GoLocal already offering last-mile delivery services for third parties, integrating this with its freight brokerage operations could create an end-to-end logistics solution rivaling Amazon’s same-day and next-day delivery capabilities.
Despite Walmart’s rapid expansion in logistics, Amazon maintains a significant lead with its dedicated air fleet, ocean shipping and extensive third-party carrier network. However, if Walmart scales WFS strategically, it could be a fierce competitor to Amazon and the entire North American 3PL industry.
Timothy Dooner contributed to this report.
This is a developing story.
Deliverr co-founder launches ‘AI teammate’ for logistics, raises $25M
Transflo releases next-gen workflow automation solution for carriers
Global manufacturing is repositioning — but it’s complicated
The post Walmart rolls forward with brokerage: What it means for Amazon appeared first on FreightWaves.
Fuente: https://www.freightwaves.com/news/walmart-rolls-forward-with-brokerage-what-it-means-for-amazon
