Walmart plans yet another step towards automation by testing self-driving delivery vans for trips between warehouses. These robot-driven vans are one way that the retailer is working to lower its shipping costs.

Why Between Warehouses?

When the average person pictures self-driving vehicles used in the supply chain, they picture the drones being tested for delivery. Walmart will take another approach by using robot-driven vehicles to transport goods between warehouses. Analysts indicated that the estimated savings associated with using driverless vehicles for these fixed routes have the potential to reach $1 trillion.

Walmart had to come up with a method of reducing costs since shipping costs are incredibly high. With the high costs of shipping, Walmart does not necessarily make much of a profit, if any, with online sales.

Walmart’s Plans

Walmart is hoping to take advantage of those potential savings to reduce its expenses and boost profits. This will be particularly useful given the boom that the retailer has experienced in online sales. At the same time, Walmart hopes to improve efficiency with these driverless vans.

To achieve its goals, Walmart is working with Gatik, a startup for self-driving vehicles. Initially, the two companies will test a self-driving vehicle traveling along a two-mile route connecting two stores in Bentonville, Arkansas. The goal is to begin the pilot program this summer. From there, Walmart will hopefully be able to pinpoint logistic requirements of adding the automated vehicles into its ecosystem. This will also help the company determine logistics related to changing operations and processes and other ways to incorporate automated technology.

Walmart and Gatik already have their first test vehicles up and running. Bloomberg reporters were able to see three Ford delivery vans that incorporate Gatik’s self-driving technology.

Weighing Pros and Cons of Driverless Vehicles

Before Walmart can begin the pilot program, it needs to first gain government approval, both at the state and the city level. This is important given the wariness associated with robot-driven vehicles, particularly after the Uber test car killed a pedestrian.

At the same time, using robot vehicles has a great deal of potential. By taking out the human element, it will eliminate hassles associated with human passengers. It also means that Walmart does not need to have a passenger compartment in its vehicles, allowing for more space to be dedicated to shipping. There is also the fact that there are around 60,000 long-haul positions unfilled thanks to the growing demand of drivers due to the increase in online shopping.

Source:

https://www.cnbc.com/2019/06/19/walmart-to-test-self-driving-delivery-from-warehouse-to-warehouse.html

https://www.bloomberg.com/news/articles/2019-06-19/walmart-s-kickstarting-a-1-trillion-driverless-delivery-market

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