Wondering how Walmart prepared its supply chain for a surge in customer orders this past holiday season? We were, too, so we reached out to Jennifer McKeehan, senior vice president of end-to-end delivery at Walmart, to find out. What follows are McKeehan’s answers to questions about her professional background, Walmart’s supply chain program, its supply chain plans for the future, and some best practices you can apply to your business.
Inner Circle: Tell us about your professional background and your role at Walmart.
Jennifer McKeehan: I started with Walmart in August 2022 as the leader of our end-to-end delivery platform, overseeing transportation across global ocean, domestic and final mile customer delivery across all demand channels, including our Spark Driver Platform and GoLocal. Prior to Walmart, I led end-to-end supply chain and field operations at Peloton as well as worked in supply chain for The Home Depot.
My background is deeply rooted in global supply chain operations, logistics and retail. I’m passionate about building and refining end-to-end delivery capabilities and implementing best-in-class solutions to provide customers with a great shopping experience — no matter if they shop online or in-store.
IC: What types of supply chain programs did you put in place prior to the holiday season?
JM: Over the past year, the team worked tirelessly to prepare our supply chain for holiday 2022. We focused on strengthening our supply chain network and inventory position with the following measures:
- Continued to expand our Black Friday “Deals for Days” savings events with deals dropping both online and in-store throughout the month of November, including the option for customers to order online and pick up in-store.
- Optimized our supply chain operations end-to-end and worked closely with our carriers across ports, rail and delivery to ensure an efficient flow of merchandise into stores and strong in-stock levels for customers.
- Brought customers fast, reliable delivery through the Spark Driver platform, our largest local delivery service provider.
- Tested and expanded our local delivery capabilities with drone delivery and autonomous and electric vehicles, including meeting our intended drone expansion plans for the year, having completed 6,000 deliveries from 36 hubs in seven states.
- Invested in automated facilities, which enable us to flow products faster through our distribution and fulfillment network into stores. This included opening our first Next Generation fulfillment center in Joliet, Ill.
- Deployed automated technology in distribution centers, with plans to bring more online this year.
- Increased the number of items available for pickup and delivery. Now more than 240,000 products are available for Express delivery, free next-day or two-day delivery.
- Introduced an extended return policy along with convenient curbside returns at customers’ local stores and provided more convenience for Walmart+ members through InHome Delivery and easy return pickup from home.
IC: How were these programs different from what you put into place in years’ past?
KM: Our supply chain programs have always taken a comprehensive approach to serving customers through delivery, and holiday 2022’s programs were no different. We learned a lot with the supply chain snarls of 2021. We used key learnings from that experience to ensure that all work we forged ahead on was helping our supply chain remain stable and strong despite the external circumstances. From fulfillment and transportation to innovation and automation, we expanded our supply chain capabilities and reinforced our delivery network last year to help deliver the best holiday shopping experience for customers.
[However], heading into 2022, there were several macroeconomic factors at play, more so than in years’ past. For example, inflation was running high and the global supply chain was still recovering post-pandemic. Despite these external forces, we approached our supply chain efforts with the end customer in mind. Walmart has a long history of bringing customers the goods they want and need at the Every Day Low Prices they expect from us. This value is ingrained in our business, and we will continue to deliver on that expectation through our supply chain programs for years to come. Walmart will continue to invest in our delivery network and the programs that we utilized during holiday 2022, all of which help our supply chain to remain strong and stable. Looking ahead, I’m excited to continue our work in the innovation and automation space with drones, electric and autonomous vehicles.
IC: What are some supply chain trends you’re seeing across the retail industry in 2023?
KM: With the focus on omnichannel, we’re seeing the need for more precision when it comes to tracking inventory throughout the entire supply chain. At Walmart, for example, our focus on becoming the best omnichannel retailer has us rethinking the supply chain and investing in automation. This also means an increased focus on the technology (such as artificial intelligence) that makes it operate. Ultimately, these investments have a positive impact on our customers, ensuring we have what they need when they need it, as well as our associates, providing good jobs and great career opportunities.
IC: Any best practices you can share with our audience for creating an efficient and effective supply chain?
KM: I can’t overstate how critical it is for leaders to be thinking about the full end-to-end supply chain, from first mile to last mile and all the touchpoints in between. At Walmart, I have the opportunity to lead a new organization called End to End Delivery, which our chief operating officer, Chris Nicholas, put in place to ensure we’re creating an integrated approach to getting our customers the items they need, when they need them.