Optimizing Walmart's supply chain from strategy to execution

Walmart built end to end optimization capabilities in its supply chain to make strategic and operational decisions consisting of network planning and transformation, routing and loading systems and a simulation platform. This optimization-empowered decision framework is evolving and transforming Walmart’s supply chain while keeping its Every-Day-Low-Price (EDLP) promise to its customers. Walmart takes a holistic approach to its supply chain, which integrates strategic and operational decisions consisting of three components: (1) network planning and transformation, which recommends the long-term network with step-by-step recommendations on how to achieve the end state; (2) a routing and loading system (Load Planner), which determines how to efficiently move products across the network; and (3) a simulation platform, which combines strategic and executional decision engines to enable a holistic decision-making process. Walmart built a set of scalable and fast optimization decision engines and deployed them using underlying innovative algorithms and models. The company fully adopted this next-generation optimization capability throughout its entire grocery supply chain in the United States, and approved optimization model-based network design and transformation plans for long-term investments involving billions of dollars. As a result of this efficient routing and loading executional system, Walmart prevented 98.6 million pounds of CO 2 emissions and saved $91.5 million by eliminating 108,000 truck routes covering 33 million miles in fiscal year 2023 (FY23). Moreover, this optimization-empowered decision framework is evolving and transforming Walmart’s supply chain while keeping its Every-Day-Low-Price (EDLP) promise to its customers.