Walmart’s journey toward sustainable last-mile delivery has been marked by unique challenges and innovative solutions. With a vast network of 4,700 U.S. stores and a workforce of 1.6 million, the retail giant faced the daunting task of selecting the right vehicles and setting up charging infrastructure across the country. The decision to transition to electric vehicles (EVs) was not just an environmental move but also a strategic business decision.
Choosing the Appropriate Vehicles
Walmart’s leadership demanded a meticulous analysis of the potential returns on investment for their delivery vehicle options. Sai Teja Yerapothina, Walmart’s senior director for last-mile delivery, strategy, and operations, explained the approach: evaluating costs from vehicle pricing to maintenance and energy consumption. Yerapothina stated, “EVs turned out to be our cheapest option and also the most sustainable option. So it was an easy decision for us.” Currently, Walmart partners with Ford and GM for its fleet.
Implementing Charging Infrastructure
The deployment of Level two chargers, capable of overnight vehicle charging, was deemed sufficient for Walmart’s fleet. However, the infrastructure rollout faced varied regional permitting requirements, diverse utility providers, and differing store designs. Yerapothina noted, “Every single location came with a different challenge.”
Instead of getting bogged down by these challenges, Walmart’s approach involved testing charging stations at select locations and gathering feedback. Connectivity issues, such as Wi-fi limitations, were addressed by equipping some chargers with cell-signal connections, enabling software monitoring of the chargers and vehicles.
Creating a Comprehensive Playbook
Collaboration between the last-mile team and other departments led to the creation of a playbook for expanding the charging network. While it provided guidelines, store managers retained the decision-making power for charger placement. Yerapothina emphasized the importance of simplicity and clarity, stating, “We start with: Is this simple enough that I could stand with an early associate in a store and explain to them in 30 seconds?”
The team also focused on educating drivers about the benefits of features like one-pedal driving, which aids in reducing charging costs and brake wear. As Yerapothina observed, “We’ve seen a huge uptick in adoption.”
Exploring Drone Deliveries
With the EV fleet established, Walmart is now exploring drone deliveries. Having completed approximately 300,000 orders using drones in Dallas, Houston, and Arkansas, the company is considering how to adapt this technology for multi-unit residential buildings. Yerapothina envisions a future where customers select delivery speed without concern for the delivery method, stating, “They just say, this is the speed I want it in. And then the retailer figures out how to get it there — and drones could be one of those options.”
Original Story at trellis.net