Business

Who is Parcel? What This Delivery Company Means to Walmart

The newest member of the Walmart e-commerce family is Parcel, a technology based, same-day and last-mile delivery company specializing in perishable and non-perishable delivery to customers in New York City. They also provide services like scheduled evening delivery and custom text message notifications for high-growth e-commerce companies looking to differentiate their customer experience.

So, what does this all mean for Walmart? We caught up with Nate Faust, senior vice president, Walmart U.S. eCommerce Supply Chain, to find out.

Why acquire a delivery company?

Delivery is increasingly one of the most important elements for today’s online shoppers, as demands for speed, flexibility, and reliability continue to grow. That’s why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers. Parcel is a proven leader in e-commerce package delivery, including taking fresh, frozen and perishable food, the last mile – that is, the last step in the shipping process as products make their way from a fulfillment center to your door.

What are your plans for Parcel?

Parcel has partnerships with several meal kit, grocery and e-commerce companies, and has delivered more than 1 million meals in the past two years. So our immediate plan is for Parcel to continue serving its existing clients and growing its customer base. There’s a lot of upside and I’m excited about the potential there.

But I see even more upside for our own same-day deliveries. Jet has been testing free same-day delivery of certain orders to customers in New York City. We can build upon that and plan to leverage Parcel for last-mile delivery to customers in New York City – including same-day delivery – for both general merchandise as well as fresh and frozen groceries from Walmart and Jet.

Jesse Kaplan, CEO and Founder of Parcel

Can you tell us more about their operations today?

Parcel is a 24/7 operation that delivers packages the same day, overnight and in scheduled two-hour windows. They’ve built a technology platform from the ground up to automate their operations and provide clients and customers with live updates throughout the delivery process. From a warehouse in Brooklyn, Parcel receives packages destined for customers throughout New York City. Using routing algorithms, a fleet of leased trucks, and a professional, employee-based workforce, they’re able to quickly sort and load packages for delivery routes.

How much did Parcel’s New York location factor into the decision to acquire them?

New York City is the top market for both Jet and Walmart.com, and because of the density of the area – along with the proximity of our fulfillment centers – it’s the perfect place for high-impact innovation. Born and bred in New York City, Parcel has developed unique expertise delivering to customers in a distinctly challenging and essential market. This acquisition allows us to continue testing ways to offer fast delivery while lowering our operating costs.

Outside of large metro areas, do you think customers really want same-day delivery?

Customers’ expectations around delivery and what is possible have changed significantly in the past couple of years. Whatever they need and however they’d like it, we aim to provide – including the ability to offer last-minute ordering with same-day delivery service.

And while customers are looking for low prices, we also know they want convenient experiences that make shopping easier. It’s why we’ve focused on creating more options to meet their needs, such as our free two-day shipping to home, our pickup discount and free online grocery pickup service. It’s also the reason we’ve been testing a number of different innovations at Walmart and Jet to further enhance how we serve customers even faster, with programs ranging from associate delivery to in-building and in-fridge delivery with Latch and August Home. We’ll continue to explore more ways to give customers the freedom to choose how, when and where they receive their orders from us.

For additional facts about Walmart's acquisition of Parcel, check out this fact sheet.

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U.S. Manufacturing

Answering the Open Call: Entrepreneurs Bring It at Walmart’s Annual Event

It was high-stakes show-and-tell yesterday at Walmart’s annual U.S. Manufacturing Open Call event.

Entrepreneurs representing more than 450 businesses roamed the halls of our Home Office in Bentonville, Arkansas, awaiting their turn to pitch everything from salsa to sportswear in front of Walmart buyers. Weaving my way through the crowd, I saw hundreds of original and inventive items and had the privilege of meeting some of the people and hearing some of the stories behind them.

A few of those people walked away with deals, a few heard maybes and others received feedback that will prepare them to try again. Here are five of my favorites.

1. Flying High. Megan Hardwick had a roller-coaster ride of a day. The business owner and mom had to pitch her Wings Cosmetics eyeliner stamps twice: once in a small room in front of a buyer, then in an auditorium filled with other hopefuls and Walmart associates. Our cosmetics buyer was sold on Megan’s invention – flexible plastic stamps that apply liquid or gel eyeliner in sharp, matching wing shapes in seconds.

Flying high after getting a deal, she was selected for a live pitch session called “Bring It,” where businesses vied for crowdsourcing to identify which products would get placement in Walmart stores. Megan’s Wings went up against Mighty Good Pizza Saver – a microwavable plastic container that keeps leftover pizza fresh – and the competition was intense, with the Pizza Saver taking the lead by one point seconds before the polls closed. Megan wasn’t out of the game though. Her Wings pulled through and the contest ended with a tie.

2. Sparking Interest. Warren Brown, a lawyer-turned-baker from the Washington, D.C., area, attended his first Open Call in 2017 and ultimately landed a deal for Don’t Forget Cake: a single-serve layer cake with frosting in a jar. This year, he presented a healthier snacking option called Spark Bites. Warren said these whole-grain snacks are gluten- and allergen-free, high in fiber, low in cane sugar and come in five different flavors. His Spark Bites were referred to another buyer in a category that better fits the product. As for Don’t Forget Cake, two flavors launched in March and will soon be available in 1,000 Walmart stores.

3. Ugly Dates Deserve Love. This story begins all the way in Israel. When David Czinn and his friend and business partner, Brian Finkel, were studying abroad in the Middle East, they both fell in love with the region’s alternative to honey: D’vash date nectar. The sweetener has been a staple of Middle Eastern cuisine for thousands of years, David said, and the duo wanted to bring it to the States – but they wanted to cut the sugar and make it environmentally friendly. Thus D’vash Organics was born. Their dates come from Coachella Valley farms in California. “We buy the ugly ones that wouldn’t otherwise be sold,” David said. The nectar is vegan, has 25% less sugar than honey and can add flavor to tea and coffee, marinades, salad dressing and much more. David, a second-time Open Call participant, said he got positive feedback and was excited for the future of this ancient delight as he prepared for more meetings later in the day.

4. Party to Go. With the summer heat just getting started, ready-to-go cocktails sound like a great idea for parties and relaxing evenings outside with friends. YUMIX has quenched the need with three flavors – Orange Mango, Margarita and Sea Breeze. Everything needed is in one bottle: Simply twist off the bottom chamber that holds the alcohol, pour into the bottle and mix. Alex Garner, founder and CEO, started the day off right when he walked out of the pitch meeting with a deal for these adult beverages.

5. The Heart of the Deal. Not everyone was at Open Call with products in tow. Businessman Ray Doustdar was back for his second year with advice and a listening ear. In 2017, Ray pitched his liquid multivitamins, Buiced – a play on “boost your veggie juice” – and didn’t immediately get a deal because the product was too big for Walmart’s shelves. Ray took the buyer’s feedback home, adjusted the size of the packaging, approached the buyer again and got his “yes.” Two flavors of Buiced, citrus and fruit punch, are now available in 3,000 stores, and the experience has been life-changing for Ray. “I knew I wanted to come back as a success story and help other people prepare for their meetings,” Ray said. “This experience has made me be better at my business,” he said, and being able to pay it forward as a mentor is important to him.

Ray said it best: “The stories coming out of Open Call are proof that the American dream is alive and well.”

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Business

Express Yourself: Walmart Introduces Relaxed Dress Guidelines in Stores

It’s an exciting day as we say goodbye to our outdated dress code and unveil new guidelines designed to help you be...you.

We’ve been listening to your feedback and are really excited to switch from the old, long text-based policy full of “Don’ts” to a lookbook loaded with great color photos showing how you can make your personal style work at work.

This is a big deal – and I’m speaking from experience. I started in the stores as an hourly intern and worked 16 years in the field. Growing up in stores, I always tried to make the dress code mine, like adding a necklace to the required blue shirt and khakis to try and dress them up a bit. But, no matter what you do, wearing the same clothes day after day gets boring.

When you can use almost your entire closet to get dressed and express your own style, you’re more engaged and feel inspired to go out and meet people. You feel included and more confident – and that confidence rubs off on others.

You’re also more comfortable. Here are three big changes that should help in that department:

  1. All associates can now wear any color denim – yes, jeans!
  2. Shirts of any color or pattern are now allowed – no more requisite blue, unless it’s your favorite color!
  3. Management can join hourly associates in wearing sneakers. This one speaks to me. I remember what it was like having to wear dress shoes in the stores and walking 8 to 10 miles a day while on the job. Oof!

What hasn’t changed: Our iconic vest and the name badge. These will ensure our customers can find our associates and identify who gave them great service.

The new guidelines go into effect this month across all 4,700 stores in the U.S. We’ll even be celebrating the changes with a “Bring Yourself to Work Day” on June 4.

Updating our dress code wasn’t a sudden decision. The process included a pilot phase in several dozen stores. The reaction from associates in those stores has been amazing. Not only do they love the new relaxed looks, they’ve gone so far as to stage their own fashion shows.

We learned from the pilot that our associates love photos showing what’s allowed, and that we’re acknowledging it’s OK to be different. We don’t want anyone to feel like they have to be someone they aren’t when they’re at Walmart.

Managers are also given more flexibility to say “Yes” instead of “No, you can’t.” This way, they can focus on how our associates do their jobs and interact with customers rather than playing fashion police.

Safety and professionalism are still at the core, but relaxing the rules on style and letting people bring their whole selves to work just makes good sense for the business, for our people – and for fashion.

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U.S. Manufacturing

Diary of a Dairy Farm: Meet the Dirksens, Who Supply Milk to Walmart

Growing up in rural Ohio, Tina Dirksen doesn’t remember picking up many things at the store. Aside from toothpaste, her family’s farm produced everything else that their 14-person household needed.

Modern life is a bit different, she explained, but it’s clear that she means that only with regard to her family’s shopping habits. A lot of her life actually remains the same: She’s still in the farming business, with multiple operations that produce pork, grain, corn and dairy. And she’s still a part of a big family, today the mother of eight children who all love animals and the land.

“I ask them what they want to do in the future and each one of them tells me they want to farm,” she said. “They know no other life. They truly enjoy it.”

While the Dirksens somehow find time to do their own gardening, canning and butchering some of their own meat, Tina says they make two trips to their local Walmart per week. So when the opportunity arose for them to sell milk to Walmart’s new dairy plant in nearby Fort Wayne, they were excited. They would be shipping their milk just a short distance, and by working directly with a retailer, they could oversee more details themselves.

“It totally made sense to me,” she said. “Farming is changing, and the dairy industry as a whole needs more outlets for their milk. This new plant offers that.”

Local farmers like the Dirksen family are critical to Walmart’s entry in to milk processing. Nearly 30 farms across Indiana and Michigan have signed up to provide milk to the 250,000-square-foot state-of-the-art plant, which began construction in 2016 on the heels of the Indiana State Department of Agriculture’s strategy to increase the volume of dairy processing locally. In opening this facility, Walmart joins a majority of other grocery retailers who run their own milk processing operations.

For the Dirksens, doing business in dairy is an investment for the future. Their 8,000-hog pork farm provides the majority of their income, while any profits the dairy farm produces are put back into improving it alone. Tina keeps up with industry innovations and implements those that are beneficial for the cows, the business and the environment.

“Sustainability is accountability,” she said. “If you don’t make a farm that is sustainable, it won’t be very profitable to you. It’s not something that we take lightly.”

The Dirksens care equally about their relationships with the people and the animals who work for them. While Tina’s responsibilities on the farm are mostly administrative, she oversees veterinary care for the cows and has been known to help out her employees by even babysitting their kids once in a while. Her family even spends time with cows on their off hours – they’ve had a pet, a Jersey cow they named Good Golly Molly, for 7 years.

“What I love most about farming is that it provides us the opportunity to do what’s best for our family,” she said. “To us, working with Walmart is an exciting adventure.”

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Opportunity

Surprise, You’re Promoted! Meet Associate Tanaka Chikerema

When Tanaka Chikerema walked into Bud Walton Arena on Friday morning, he was already anticipating the moment he would walk on stage in front of thousands of his fellow associates –he just never expected that Greg Foran, CEO of Walmart U.S., would offer him a promotion when he did.

It’s pretty unusual for a CEO to promote one of his field associates on stage in front of an international audience. But then again, so is the path that led Tanaka from the capital city of Harare, Zimbabwe all the way to a stage in Northwest Arkansas.

“I was seven when my mom moved to the U.S.,” Tanaka recalls, “and I was just starting high school in Harare when she called and said it was time for me and my brother to move to Plano, Texas.”

In Zimbabwe, Tanaka’s mother, Dorcus, supported her family as a geography teacher. But economic hardships that still affect the country today created a system of poverty and crime, and she knew that even with a college education her children wouldn’t get the opportunities they deserved if they stayed in Harare.

Over the next seven years, Dorcus earned her nursing degree overseas while supporting her family with the income from three jobs.

“We were all living in one house together, my grandparents, cousins, brother and me,” said Tanaka. “To send any of us to school, there had to be a choice about who it was going to be. My mom knew that if we stayed in Harare, there was a good chance we could end up on the streets or getting into trouble.

“She always told us, ‘I just want you to stay focused. I just want you to have goals and stay on track.’”

When Tanaka graduated from high school in Plano, his mother’s words stuck with him. A job as a part-time truck unloader at his local Walmart quickly advanced as his managers recognized his potential. Within a year, Tanaka was promoted to supervisor. The words of his first mentor, Joe Riviera, still stick with him today: “If you show up and give 110%, it will pay off. It will always pay off.”

And it did. On stage at Walmart’s Associate Meeting, in front of thousands of his colleagues, Tanaka was promoted to a store support manager and recognized for the hours of energy and focus he’s dedicated to the company.

“It humbles me to think about how good my life is now,” Tanaka said, “and how much further I have to go. If this year has taught me anything, it’s that my mom was always right: ‘Get ready for the future, because you never know what it might hold.’”

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