🚀 Expanding Automation
Walmart is adding five new automated distribution centers to its grocery supply chain, announced David Guggina, EVP of Supply Chain Operations, on July 10, 2024. The new facilities will be located in Lancaster, Texas; Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey. The first of these, in Shafter, California, has been operational since 2021. Each center will feature cutting-edge technology, including nearly 80-foot-tall storage structures, automated lifts, and de-palletizing robots.
🏗️ Upgrading Existing Facilities
In addition to the new centers, Walmart is enhancing its existing perishable distribution facilities in Mankato, Minnesota; Mebane, North Carolina; Garrett, Indiana; and Shelbyville, Tennessee. Each facility will gain over 500,000 square feet of automated space. According to Guggina, these upgrades will enable Walmart to double its storage and processing capacity compared to traditional facilities.
🔧 Retrofitting for the Future
Walmart is also retrofitting its perishable distribution center in Winter Haven, Florida. This initiative aims to explore the feasibility of integrating automation into existing buildings. "Our goal is to learn more about the feasibility and requirements of retrofitting an existing grocery building with automation technology," said Guggina. Walmart has previously completed similar retrofits at 13 distribution centers.
📈 Long-Term Goals
Walmart’s automation strategy was highlighted in its 2023 investors meeting, aiming to handle 55% of its fulfillment volume with high-tech centers by the end of fiscal 2026. According to CFO John David Rainey, Walmart is on track to meet these targets, with automated distribution centers supporting about 1,500 stores entering fiscal 2025. "The implementation of our automated storage and retrieval systems is on track," said CEO Doug McMillon, expressing continued enthusiasm for the project's impact.
Will Walmart's automation enhance customer satisfaction?
