Trucking companies in Walmart Transportation’s network have recently started receiving emails about Walmart’s new third-party logistics offering. This initiative signals the retailer’s deeper expansion into freight services that it announced in August, leveraging its existing logistics network as an offering to its Walmart Sellers.
The emails, sent to select carriers, introduce Walmart’s brokerage program and outline the benefits of participation.
“We’re connecting with a select group of carriers like yourself to embark on an initiative that will transform the way we deliver to our customers. By joining us, you’ll have the opportunity to secure steady freight and play a crucial role in ensuring our freight reaches all our customers,” said the email obtained by FreightWaves.
Carriers are directed to a website to begin the onboarding process, with additional guidance provided as they complete each step. The communication invites interested carriers to reach out for details.
To qualify, carriers must meet requirements including operating over 10 but under 1000 trucks, maintaining at least five consecutive years of operating authority, and carrying $1 million in liability insurance and $100,000 in cargo insurance. Additionally, carriers must have 53-foot dry vans, reefers or flatbeds, meet Walmart’s safety standards – specifics of which FreightWaves has not confirmed – and ensure that drivers use smart devices for tracking purposes.
Sources close to the new service say Walmart’s brokerage segment is still in stealth mode as it takes its first steps toward becoming a competitor in the 3PL space.
The business endeavor could fall under Walmart Fulfillment Services (WFS) which holds broker authority under MC#1096733 and freight forwarding authority under FF#37548. Walmart last year announced its freight forwarding services, focused on cross-border and other international shipments for its marketplace sellers.
Walmart’s entry into brokerage has significant implications for the 3PL industry. By leveraging its vast logistics infrastructure and private trucking fleet – one of the largest in North America – Walmart (NYSE:WMT) could disrupt traditional brokerage models. The retailer’s ability to consolidate freight from its marketplace sellers and integrate with its existing distribution network may present an attractive value proposition for shippers seeking cost-effective and reliable logistics solutions.
The expansion also marks another step in Walmart’s ongoing competition with Amazon (NASDAQ:AMZN).
