Walmart has found a new way to keep its supply chains running smoothly.
Shortages in the U.S. have become synonymous with supply chain issues since the start of the pandemic. But the most troubling piece of this puzzle, and one that often gets overlooked, is an acute labor shortage in the world’s biggest economy.
There are nearly 11.3 million unfilled positions in the U.S. labor market as of the end of January 2022. And with The Great Resignation movement still in full swing, the challenge of filling those jobs still remains.
In 2021, retailers struggled not only with keeping their shelves stocked but also with shipping delays. This was due to not having enough truck drivers available to move goods stuck at congested ports.
Typically truck drivers employed by retail giants like Walmart (WMT) – Get Walmart Inc. Report, Amazon (AMZN,) – Get Amazon.com, Inc. Report and Target (TGT) – Get Target Corporation Report deliver trailers full of goods over long distances to their respective distribution centers, which house the bulk of their inventory.
And the pandemic has only made matters worse because the drivers that are still doing their jobs have been asked to shoulder much of the extra work during the last 18 months.
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Walmart’s Plan to Avoid Supply Chain Problems
The big-box retailer has announced it will raise the wages of its in-house truck drivers, which form the very foundation of its supply chain. Walmart drivers can now make a starting salary of $95,000 up to a maximum of $110,000 in their first year with the company.
“And that’s just a start – drivers who have been with Walmart longer can earn even more, based on factors like tenure and location,” the company said in a blog post written by Walmart Senior Vice President of Transportation Fernando Cortes and Walmart Senior Vice President of U.S. Supply Chain HR Karisa Sprague.
Walmart employs roughly 12,000 truck drivers at present. Previously, Walmart drivers made an average starting salary of $87,000 the Wall Street Journal reported.
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In addition to raising wages, Walmart also introduced its first training program for drivers called the “Private Fleet Development Program.” The top retailer in the country will now train employees to become truck drivers.
Last year, Walmart moved 17 workers from its warehouse operations through its truck-driver training program, according to The Wall Street Journal.
“Over the course of a 12-week program, supply chain associates in the Dallas, Texas, and Dover, Delaware, areas earned their commercial driver’s license (CDL) and became full-fledged Private Fleet Walmart drivers,” the company said in the blog cited above.
Walmart’s certified drivers have started working with trainees, teaching written material and overseeing the actual driving.
“The investments in pay and training build on multiple recent driver bonuses and improved schedules that enable drivers to spend more time at home,” the Bentonville, Ar., retailer said.
“There’s never been a better time to join our fleet. Once drivers are on board, this is a job many leave only for retirement,” Walmart added.
