Amazon and Walmart: Which company has the better logistics development?

Amazon and Walmart: Which company has the better logistics development?

Recently, Amazon and Walmart shared their latest progress in logistics construction. Both parties have adjusted their logistics and distribution strategies, but with different focuses. Overall, the strategic adjustments have enabled both parties to improve efficiency and speed.

 

As the holiday season approaches, Amazon and Walmart are sharing their logistics progress at this time, in part to emphasize their respective logistics advantages and enhance consumer and seller confidence.

 

Walmart emphasized that this holiday season, its customers will experience the delivery efficiency brought by automation technology for the first time through its "next generation" distribution center. Amazon also said that after implementing regional distribution logistics earlier this year, the delivery efficiency in the United States has exceeded expectations.

 

Walmart: Betting on automated distribution centers and focusing on store distribution

 

SupplyChain cited Walmart executives as saying that after opening three "next-generation" distribution centers this year, Walmart has been able to significantly increase the volume of "next-day delivery" orders. The three distribution centers cover an area of ​​about 1.5 million square feet and cover a variety of categories such as clothing, toys, and electronics.

 

Walmart's "next generation" distribution centers mainly use automated technology, and it plans to deliver goods to stores and customers faster and more efficiently through these centers. Walmart reportedly expects more than 15% of its stores to receive goods from its automated distribution centers this year.

 

Walmart is also developing its in-store delivery service, introducing seven automated delivery facilities in its stores, which are mainly used to fulfill the pickup and delivery of online orders.

 

Walmart is once again extending same-day delivery hours in anticipation of the holiday season. In September, Walmart announced that it would allow customers who place orders before 9:30 p.m. to receive their orders before 10 p.m. This holiday season, customers can use late-night delivery services until 10:30 p.m. at 4,000 stores.


Amazon: Focus on regional delivery networks to improve delivery efficiency

 

Unlike Walmart, which builds new distribution centers and expands its logistics network, Amazon mainly improves distribution efficiency while reducing costs by improving distribution network connections within the region.

 

Previously, if the local distribution center did not have inventory, Amazon had to ship from other parts of the United States, which would increase distribution costs and extend delivery time. After implementing regional distribution, Amazon shortened delivery routes, reduced costs and accelerated delivery by improving the inventory level of local distribution centers and the connectivity between different distribution centers and sites.

 

Amazon emphasized that its goal is to increase shipping speed by achieving more regional delivery. Previously, Amazon mainly increased delivery speed by expanding its distribution center network, but its strategy changed after the decline in e-commerce sales. Now, Amazon is continuing to reduce its logistics costs and is committed to increasing delivery speed through other means.

 

Editor✎ Ashley/

Disclaimer: This article is copyrighted and may not be reproduced without permission.

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