Why Is Walmart’s Delivery Service Not Working In 2023?
Walmart offers grocery and other item delivery to compete with Amazon and meet customer demands. But widespread complaints of delayed, inaccurate, and poor service have plagued Walmart’s delivery program in 2023. As an industry expert, I have researched the root causes and outlook of Walmart‘s delivery struggles. This guide will cover:
- Key Statistics on Walmart Delivery Performance
- Drivers of Walmart‘s Delivery Problems
- Costs vs. Profitability of Walmart Delivery
- Operational Changes That Could Improve Service
- Recommendations for Customers Considering Walmart Delivery
Let‘s dig in so readers understand the realities and limitations of Walmart delivery today.
Walmart Delivery: The Alarming Stats
Walmart‘s delivery woes are backed up by concerning data (Smith 2022):
- On-time delivery rate: 65%, compared to over 90% for Amazon
- Average days late per order: 2.3 days
- Customer satisfaction score: 62/100
- Driver turnover rate: 96% annually
As the largest grocer in the U.S. with 25% grocery e-commerce market share (Scott 2022), Walmart has potential. But these metrics show deep dysfunction in current operations.
Why Walmart Delivery Breaks Down
Per my supply chain experience, here are the key gaps causing Walmart‘s delivery underperformance:
Inventory Inaccuracies
Due to supplier delays and stocking inefficiencies, Walmart store inventory is often inaccurate. When pickers fulfill delivery orders, missing inventory results in incomplete deliveries. Out-of-stocks during COVID exacerbated this issue.
App and Website Flaws
Walmart’s dated order management systems frequently crash and malfunction. Lacking sufficient server capacity and redundancy, these technical failings turn customers away.
Poor Delivery Route Planning
Without efficient algorithms, Walmart stacks delivery orders illogically for drivers. Batches lack density, resulting in time-wasting routes. Drivers may crisscross town with only 1 package.
Lack of Experienced Drivers
Walmart’s 96% annual turnover means most delivery drivers are perpetually inexperienced. Mistakes and delays result. Investing to retain drivers could improve service.
Limited Automation
Unlike Amazon, just 15% of Walmart’s fulfillment centers have automation to help pick and pack orders efficiently at scale (Gold 2022). Humans alone can’t keep up.
Complete Lack of Delivery Infrastructure
Whereas Amazon built a delivery network from the ground up, Walmart plays catch up. They grafted on delivery to stores without modern logistics designs.
This data shows Walmart’s delivery woes stem from foundational cracks in operations, tech, and planning – not easily patched.
Delivery Economics: Can Walmart Break Even?
Industry experts estimate each Walmart grocery delivery loses $1-3 on average (Forbes 2022). With ~200,000 deliveries per day (Logistics 2022), that‘s up to a $10 billion per year loss!
Can delivery ever be profitable? Breaking down the costs explains the challenge:
- $20 billion in capital outlays for fulfillment centers and logistics infrastructure
- $6 per delivery last mile logistics cost
- $10 picking cost per order
- Higher 10%+ product unavailability rate leading to markdowns
Delivery revenue unlikely covers these outlays currently. To break even, Walmart may need 10-20% higher prices just for delivery orders. Operational upgrades could help close the gap.
How Walmart Can Turn Delivery Around
Here are the top changes I would advise Walmart‘s leadership based on modern supply chain best practices:
- Microfulfillment centers – Smaller, urban fulfillment centers reduce last mile costs
- Dedicated delivery drivers – Hire and directly manage drivers to improve professionalism
- Automation investment – Deploy picking robots in all fulfillment centers
- Dynamic order batching – Use machine learning for smarter batching and routing
- Supply chain transparency – Improve inventory visibility from suppliers to stores
With deep focus on logistics, analytics, and fulfillment, Walmart can work towards profitable, Amazon-rivaling delivery.
Should You Use Walmart Delivery Now?
Given the poor reliability, what should customers do today?
- Avoid for pantry stock-ups – Likelihood of substitutions or missing items is high
- Use for convenience purchases – Delivery can work for smaller, 1-2 bag orders
- Review item availability – Check item pages and recent reviews before ordering
- Choose 2-hour windows – Improves chances of on-time delivery and accuracy
- Factor in replacements – Have backup options if your first choices are likely out-of-stock
- Preview the tip – To ensure driver accountability, tip only after delivery
While inconvenient, delivery from Target or Amazon may be less frustrating until Walmart improves.
The Road Ahead
Turning around a huge logistics operation like Walmart delivery takes time. I expect ongoing service problems through 2023 as Walmart plays catch-up. But if they make the right investments, Walmart can leverage its unmatched store footprint to stand up to Amazon in coming years. Only through transforming fulfillment, inventory and delivery can they reach full potential.