Wal-Mart Stores is seeking to take over its U.S. transportation services from suppliers in an effort to reduce the cost of hauling goods, Bloomberg reported Friday.
The company is contacting all manufacturers that provide products to its more than 4,000 U.S. stores and Sam’s Club membership warehouse clubs, Bloomberg reported, citing a Kelly Abney, Wal-Mart’s vice president of corporate transportation.
The goal is to take over deliveries in instances where Wal-Mart can do the same job for less and use those savings to reduce prices in stores, Abney told Bloomberg.
Under the program, Wal-Mart is increasing the use of contractors and its own private fleet of trucks, in order to pick up products directly from manufacturers and transport the goods to its distribution centers and stores.
The retailer currently moves most goods only from its distribution centers to stores, Bloomberg reported.
Wal-Mart said earlier this year it was pushing for more efficiency among its suppliers. (Click here for previous story.)
Wal-Mart Stores, Bentonville, Ark., is ranked No. 3 on the Transport Topics Private 100 listing of U.S. and Canadian private carriers.
