TL;DR:
- Walmart is implementing various measures to reduce packaging waste associated with online orders.
- Artificial intelligence (AI) is used for order routing, enabling more efficient fulfillment from stores instead of fulfillment centers.
- Right-sizing packaging technology is being adopted to create custom-fit packages, reducing the need for filler and oversized boxes.
- Recyclable paper bag mailers are replacing plastic mailers, aiming to eliminate millions of plastic bags.
- Customers can opt out of single-use plastic bags for online pickup orders.
- Walmart’s commitment to sustainability and innovation sets an example for the retail industry.
Main AI News:
In a bid to address the mounting issue of excessive plastic usage in its supply chain, Walmart, the retail behemoth, is leaving no stone unturned. The company has embarked on a series of measures across its enterprise to curtail packaging waste associated with online orders. These sweeping efforts encompass the application of artificial intelligence (AI) to order routing, the provision of a shipping consolidation option for customers, the implementation of last-mile delivery efficiencies to reduce travel distance and delivery times, the transition from plastic to recyclable paper mailers, and the abandonment of single-use plastic bags for online pickup orders.
These initiatives form a crucial part of Walmart’s commitment to transforming into a more regenerative company. Here, we delve into the key highlights of each measure, shedding light on the retail giant’s strides toward sustainability.
AI-Based Order Routing: A Milestone in Efficiency Leveraging advanced AI capabilities, Walmart has employed a cutting-edge system to determine when an online purchase can be fulfilled from one of its 4,700 stores rather than relying solely on fulfillment centers. This significant step aims to minimize both the number of miles traveled and the number of boxes used for shipping. By adopting this technology, Walmart is poised to significantly reduce its environmental impact while optimizing its supply chain operations.
Right-Sizing Packaging: A Customized Approach Walmart is spearheading a transition to right-sized packaging technology across approximately half of its fulfillment network. This innovative solution facilitates the creation of customized packages tailored to each customer’s order. Through the elimination of unused space in the box, Walmart estimates that the technology can reduce filler usage by an impressive 60%, thereby curbing waste resulting from oversized packaging by up to 26%. Furthermore, the retailer now offers all online shoppers the option to consolidate multiple items into fewer boxes, resulting in reduced waste and a lower number of shipments.
Recyclable Mailers: An Environmentally Conscious Choice To drive its sustainability agenda, Walmart is ushering in a new era where the majority of orders shipped from fulfillment centers, stores, and marketplace items dispatched through Walmart Fulfillment Services will arrive in recyclable paper bag mailers. This transition is expected to eliminate a staggering 65 million plastic bag mailers, equivalent to over 2,000 tons of plastic, from circulation in the United States by the end of the current fiscal year. By adopting recyclable alternatives, Walmart demonstrates its commitment to mitigating the environmental impact of its operations.
Plastic Bag Alternatives: Empowering Consumers to Choose Recognizing the critical role of consumer choices in fostering sustainability, Walmart is providing customers nationwide with the option to opt out of single-use plastic bags for their online pickup orders. Preliminary tests indicate a promising adoption rate, suggesting that millions of single-use bags could be prevented from entering circulation each year. Walmart’s ambitious plan involves the nationwide implementation of this program by the year’s end, effectively empowering customers to contribute to the reduction of plastic waste.
Walmart’s Regenerative Vision: A Testament to Innovation Karisa Sprague, Senior VP of Fulfillment Network Operations at Walmart U.S., emphasizes the company’s dedication to regeneration, stating, “Our commitment to regeneration is core to who we are and how we innovate at Walmart.” Walmart’s extensive network of stores, with 90% of the U.S. population living within a 10-mile radius of a Walmart store, positions the company to make a significant positive impact on waste reduction and emissions. Jennifer McKeehan, Senior VP of End-to-End Delivery at Walmart U.S., expresses her pride in the ongoing efforts to prioritize regeneration, asserting that Walmart will continue to pursue sustainable practices in its delivery operations.
Conclusion:
Walmart’s strategic initiatives to minimize online packaging waste through AI, right-sizing packaging, recyclable mailers, and plastic bag alternatives showcase its commitment to becoming a more regenerative company. By leveraging technology and adopting sustainable practices, Walmart not only reduces its environmental impact but also sets a precedent for other businesses in the market. This highlights the increasing importance of incorporating sustainability into supply chain operations, which will likely drive further innovation and reshape the market landscape towards more eco-friendly practices.
