Walmart, the retail behemoth, is set to add five new automated distribution centers to its grocery supply chain, according to a recent business update. The company is also planning to add over 500,000 square feet of automation to each of its perishable distribution facilities located in Mankato, Minnesota; Mebane, North Carolina; Garrett, Indiana; and Shelbyville, Tennessee. These high-tech distribution centers are expected to double the company’s storage and volume processing capacity compared to its traditional facilities.
The Role of Automation in Walmart’s Strategy
Automation has been a key component of Walmart’s supply chain strategy for several years, with the company leveraging new technology at its distribution and fulfillment centers to improve efficiency. The company’s automation ambitions were outlined during its 2023 investors meeting, where it announced plans to use high-tech distribution centers to service 55% of its fulfillment center volume by the end of fiscal 2026.
The five newly announced high-tech distribution centers will include an already operational facility in Shafter, California, that opened in 2021. The other four facilities will be located in Lancaster, Texas; Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey.
Technological Upgrades and Future Plans
The technological upgrades at these facilities will include a nearly 80-foot-tall storage structure accessed via automated lifts and conveyors, de-palletizing robots, and algorithms for optimal product placement. In addition to the new and expanded facilities, Walmart plans to retrofit its perishable distribution center in Winter Haven, Florida.
Walmart’s automation upgrades extend beyond distribution, with the company opening its third next-generation fulfillment center last fall and adding its third high-tech consolidation center earlier this year. The company’s CEO, Doug McMillon, expressed enthusiasm about the impact of the automated storage and retrieval systems on the company’s distribution and fulfillment centers.
Walmart’s aggressive push towards automation in its grocery distribution network signifies a strategic shift towards improved efficiency and productivity. This expansion of high-tech distribution centers and technological upgrades is set to revolutionize the company’s supply chain operations, marking a significant milestone in its journey towards automation and innovation.
