Walmart Launches AI-Powered Logistics Tool “Route Optimization”

Walmart Commerce Technologies has unveiled an AI-powered logistics product, Route Optimization to help enterprises in enhancing their supply chain efficiency. This new product, previously leveraged by Walmart internally, is now accessible to other businesses as a Software as a Service (SaaS) solution. 

Walmart's internal implementation of Route Optimization has significantly reduced emissions and improved efficiency, garnering recognition with the Franz Edelman Award in 2023.

“By adopting our at-scale, AI-powered tech, businesses can eliminate the need and expense of developing their own technology, and instead focus on what they do best – serve their customers,” says Anshu Bhardwaj, Senior Vice President and Chief Operating Officer at Walmart Global Tech and Walmart Commerce Technologies.

Route Optimization’s use cases

The tool uses AI to optimize driving routes, trailer packing, and delivery schedules, ultimately reducing miles traveled and enhancing operational efficiency.

• Better planning for a truck’s multi-stop journey — AI-driven automated route mapping considers factors such as time, location, and store delivery windows.

• Packing trailers in the most efficient way possible — not only maximizing space but also helping to ensure temperature-controlled items stay fresh.

• Ensuring stores receive deliveries on time, regardless of external variables, by leveraging weather and traffic patterns and quickly pivoting as needed.

• Planning inventory pickup (backhauls) on return trips from deliveries to ensure trailers are never empty, ensuring efficiency and a greener footprint.

• Providing at-a-glance insights such as trailer usage, trip time, and distance traveled without cargo to help operations management teams make faster, more informed decisions.

Route Optimization is Walmart's second ready-to-use, branded solution, following Store Assist, which is another SaaS platform facilitating local fulfillment, covering shipping, pickup, and delivery services.