U.S. Trucking Concerned by Wal-Mart Shipping Policy

(Handy Shipping Guide)

Reports in the press this week indicate that the giant Wal-mart chain may be changing its policy with regard to deliveries from its hundreds of suppliers. It is quite common for large corporations to switch transport and warehousing strategies every few years, often following management changes. After a review companies which handle their own logistics often conclude that a specialist supply chain company would be more cost effective and palm off property and staff in an effort to reduce costs. A few years later someone concludes that the subcontractor is growing fat on the proceeds and an ‘in house’ operation would raise extra revenue, and so the cycle continues.

The Wal-mart scenario, whilst not precisely like this, bears the same hallmarks in that with almost 7,000 trucks the marketing giant has doubtless found itself with spare transport capacity during the downturn and has taken the view that by utilising their own vehicles for collections from suppliers they will get a free ride. This effectively means goods purchased by Wal-mart will switch from a free delivered basis to ex works or subcontractors will simply get less business from the company. Read more here.