Walmart US is increasingly relying on its 8,600 ‘Elite Fleet’ truckers over third-parties — and it’s the latest move from America’s largest company to take charge of its transportation network (WMT)
Walmart depends on its company truck drivers as well as third-party truckers to move its goods.
Its internal team of 8,600 company drivers are among the most elite in the trucking industry, earning on average $87,500 in their first year. That’s more than twice the average American long-haul trucker.
But that investment has paid off. In an interview with Business Insider, Greg Smith, executive vice president, supply chain for Walmart US, explained why Walmart is using its private team of truck drivers has driven efficiencies for the massive retailer.
Last year, when a truck driver shortage hit industries across the board, retailers ranging from Amazon to General Mills to Tyson Foods had to reevaluate their bottom lines. To attract more drivers to the industry, trucking companies had to boost pay, and that meant transportation costs ballooned — 71% of the nation’s freight is moved by truck drivers.
Walmart, which makes some 120,000 big rig deliveries per week, got hit by the truck driver shortage, too. In 2018, Walmart ran its first national television ad campaign to recruit more drivers, shortened the length of its onboarding process, and began offering referral bonuses of up to $1,500. They gave all of its truckers a raise last month, too.
All told, Walmart doubled its spending on truck driver recruitment last year.
Read more: Walmart’s company truck drivers are among the best-treated in the industry — and they’re getting a pay raise next month
But the new talent paid off for Walmart. Greg Smith, executive vice president, supply chain for Walmart US, told Business Insider that the mega-retailer has started to rely on its in-house truck driver staff over third-parties.
“With the changes that I’ve described in our system, we’ve been able to make our …read more
Source:: Business Insider