Walmart’s strategic investments in its grocery distribution center (DC) network have led to significant improvements in space utilization, throughput, and service. The retail giant’s adoption of high-tech systems is not only enhancing operational efficiency but also transforming the work experience for its associates.
According to Dave Guggina, Executive Vice President, Supply Chain Operations, Walmart US, the company has been investing heavily in its DC network. This includes the construction of five new high-tech perishable DCs. The first of these, located in Shafter, California, has been operational since 2021. The second DC, in Lancaster, Texas, is currently increasing its operations. The other three will be located in Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey.
In addition to these new facilities, Walmart is also expanding four traditional perishable DCs. This involves adding over 500,000 square feet of automation per site to boost fresh product capacity. The facilities being expanded are in Mankato, Minnesota; Mebane, North Carolina; Garrett, Indiana; and Shelbyville, Tennessee.
The Impact of Automation on Operations and Workforce
Walmart’s new technology allows it to store double the number of cases and process more than twice the volume of a traditional perishable DC. This effectively more than doubles the number of cases processed per hour.
The technology works as follows: Cases from farmers and suppliers are inspected for quality and de-palletized. They are then stored in an automated storage system that operates in a temperature-controlled environment. When it’s time to build a store order, the system retrieves the cases from storage to begin building store-ready pallets. These pallets are intelligently layered, with more fragile items like eggs or fruit placed toward the top. They are then wrapped and loaded onto a truck for shipping.
Walmart asserts that this automation is beneficial for DC workers as well. The company believes that technology is transforming physically demanding jobs into roles where associates operate and maintain high-tech systems, leading to an improved quality of life. Furthermore, associates transitioning into these new roles have reported finding them more enjoyable and satisfying, often resulting in higher base pay.
As the battle for DC automation supremacy continues, Walmart and Amazon remain key players in this evolving landscape.
Walmart’s investment in its high-tech DC network expansion has not only boosted operational efficiency but also enhanced the work experience for its associates. With automation playing a key role in increasing productivity and quality of life for workers, Walmart continues to lead the way in transforming the grocery distribution center landscape.
