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Walmart and IBM Partner for Last-Mile Delivery
Walmart GoLocal and IBM Sterling join forces to streamline last-mile delivery for retailers.
- Walmart GoLocal and IBM Sterling Order Management have integrated to offer retailers a seamless last-mile delivery solution.
- The partnership aims to simplify the delivery process, reduce costs, and improve delivery times for retailers of all sizes.
- The integration allows retailers to easily add Walmart GoLocal's delivery options to their existing IBM Sterling Order Management system.
- This move could signal a shift in the last-mile delivery landscape, with increased competition and potentially faster, more affordable delivery options for consumers.
- Retailers should assess their current last-mile delivery strategies to see if this new partnership could offer benefits.
The News:
Walmart GoLocal, Walmart's white-label delivery service, is now integrated with IBM Sterling Order Management. This partnership aims to simplify last-mile delivery for retailers by combining IBM's order management expertise with Walmart GoLocal's extensive delivery network. The integration allows IBM clients to easily add Walmart GoLocal's various delivery options, including same-day, next-day, and scheduled deliveries, to their existing systems. This move is expected to streamline operations, reduce costs, and improve delivery times for retailers. Learn more about the announcement here.
Analyst Take:
The partnership between Walmart GoLocal and IBM Sterling Order Management announced to coincide with the National Retail Federation (NRF) Big Show in New York, aims to be a significant development in the evolving landscape of last-mile delivery. The combined IBM and Walmart proposition brings together the strengths of these two industry giants. My analysis suggests this move has the potential to reshape the way retailers approach last-mile delivery, particularly in a world where consumer expectations for fast and reliable shipping are higher than ever.
What was Announced:
Walmart has long been a big IBM client, back wne IBM was in the POS game, Walmart was a huge client and the entirety of the Walmart backend still runs on IBM’s Z systems. The core of this announcement is the integration of Walmart GoLocal's delivery services into IBM Sterling Order Management. This means that retailers using IBM's platform can now seamlessly incorporate Walmart GoLocal's suite of delivery options into their operations. This includes same-day, next-day, scheduled, and bulk deliveries. The integration is designed to be user-friendly and highly customizable, minimizing the need for extensive development work on the retailer's end. Essentially, it's intended to be a plug-and-play solution to streamline the often complex process of last-mile delivery. We don’t hear a lot from IBM about Sterling but according to Enlyft IBM Sterling Order Management is used by about 998 companies, predominantly those with over 10,000 employees and revenue exceeding $1,000 million. This indicates a strong presence in large-scale enterprises, particularly in the United States where 71% of its customers are located, followed by India with 10%. These customers will certainly see benefits from this integration with Walmart’s offerings
Why This Matters:
Last-mile delivery remains a critical challenge for retailers. It's often the most expensive and time-consuming part of the fulfillment process. A study by Bain & Company found that last-mile delivery can account for more than 50% of total shipping costs. This partnership aims to tackle this challenge head-on by leveraging Walmart's vast logistics network and expertise. Walmart GoLocal, having been born out of Walmart's own delivery needs, has a deep understanding of the intricacies of last-mile delivery. Combining this with IBM's strength in order management systems creates a powerful solution for retailers.
This partnership also has implications for the wider competitive landscape. It puts pressure on other players in the last-mile delivery space, such as FedEx, UPS, and Amazon. By offering a potentially more cost-effective and efficient solution, Walmart GoLocal and IBM could attract a significant share of the market. This could lead to increased competition, ultimately benefiting retailers and consumers through lower prices and improved services.
Looking Ahead:
Based on what I am observing, this partnership has the potential to be a game-changer in the last-mile delivery space, especially for IBM’s existing Sterling installed base of clients. The key trend that I am going to be looking out for is how quickly retailers adopt this integrated solution and the impact it has on their operations and customer satisfaction, perhaps more crucially will we start to hear more from IBM about some of its storied solutions in this space such as Sterling.
Going forward, as I get further briefed by IBM I am going to be looking to understand how this partnership performs in terms of market share and its influence on the overall delivery landscape. When you look at the market as a whole, the announcement today signals a move towards greater collaboration and integration in the quest to solve the last-mile delivery puzzle.
Steven Dickens | CEO HyperFRAME Research
Regarded as a luminary at the intersection of technology and business transformation, Steven Dickens is the CEO and Principal Analyst at HyperFRAME Research.
Ranked consistently among the Top 10 Analysts by AR Insights and a contributor to Forbes, Steven's expert perspectives are sought after by tier one media outlets such as The Wall Street Journal and CNBC, and he is a regular on TV networks including the Schwab Network and Bloomberg.