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June 14, 2023

Walmart Working Toward More Sustainable Fulfillment

Posted In: Retail Articles

Walmart is adopting measures designed to make the fulfillment function more sustainable and to reduce the amount of packaging waste associated with online orders and emissions associated with product movement.

The company announced that the initiatives will include moving from plastic to recyclable paper mailers, resizing cardboard box packaging, letting customers consolidate shipping on e-commerce orders, opting out of single-use plastic bags for online pickup orders and enhancing last-mile delivery efficiencies to reduce shipping distances and delivery times.

Walmart will shift almost all orders moving from fulfillment centers and stores from plastic to recyclable paper bag mailers going forward, with the transition expected to eliminate 65 million plastic bag mailers or more than 2,000 tons of plastic from circulation in the United States by the end of this fiscal year. Early tests demonstrated promising adoption rates for a plastic bag opt-out on pickup orders, and Walmart expects to add that option during this fiscal year as well.

Walmart is also reducing the amount of cardboard used to ship products to customers by applying packaging technology in about half of its fulfillment network. The technology creates a package custom fitted to an order, eliminating unused space in the box and reducing oversized box waste by as much as 26%. It also reduces the need for filler by 60%, the company asserted. Then, giving customers shopping online the chance to request consolidation of multiple items into fewer boxes will reduce packaging waste and the number of shipments to a given customer.

In addition, Walmart is using AI to identify when an item purchased online can be fulfilled from stores instead of fulfillment centers, which reduces the number of miles driven and the number of boxes used. To ensure that items can travel more sustainably from stores to customer homes, the company is combining multiple orders on single delivery routes and transporting them in electric vans. By using its 4,700 stores as fulfillment centers, the company maintains, Walmart can speed up delivery times for customers and reduce fleet miles and emissions in line with its commitment to achieve zero emissions by 2040.

“With a Walmart store located within 10 miles of 90% of the U.S. population, we can make a meaningful difference for our customers by strategically using our stores and last-mile delivery network to reduce waste and emissions,” Jennifer McKeehan, senior vp of end-to-end delivery at Walmart U.S., stated, “I’m proud of the efforts we’ve made and will continue to make as we keep regeneration at the forefront of delivery.”

With a 27% growth in e-commerce, Walmart is investing in omnichannel capabilities not only to meet customers’ changing needs but also to grow its business and fulfillment network in a more sustainable way. The environmental enhancements it is making represent a key milestone in Walmart’s journey to give customers more sustainable choices, regardless of how they shop. The changes Walmart is making, the company indicated, are emblematic of how it is acting on a commitment to becoming a more regenerative company.

Karisa Sprague, senior vp, fulfillment network operations, Walmart U.S. noted, “Our commitment to regeneration is core to who we are and how we innovate at Walmart. Customers have told us how excited they are about these enhancements to make it easier for them to make more sustainable choices that support the planet and the next generation.” 

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