Walmart, the world’s largest retailer, is reportedly planning to invest $200 million in autonomous forklifts to enhance warehouse operations, marking a significant step in the company’s automation strategy.
Walmart’s Automation Strategy
The company aims to use these autonomous forklifts to transport pallets of goods in its distribution centers, which supply Walmart stores. The potential supplier for these forklifts is Fox Robotics, an Austin-based startup in which Walmart has already invested $25 million.
The Role of Fox Robotics
The implementation of these autonomous forklifts, known as “FoxBots,” will occur in stages over several years and is contingent on Walmart’s satisfaction with the technology. Walmart has already piloted the technology and plans to add at least 19 FoxBots to four facilities. However, the company emphasizes that the deployment process is an evolving one, with performance evaluations at each phase to determine if the technology meets their customer service standards.
The Impact of Automation on Walmart’s Business
Walmart’s focus on robotics and automation in recent years is part of a strategy to manage costs, keep product prices low, and compete with other retailers like Amazon.com. Analysts estimate that the company could add $20 billion to its pre-tax profit by fiscal 2029 due to its efforts in automation and artificial intelligence.
Walmart’s Other Robotics Ventures
In addition to its potential deal with Fox Robotics, Walmart announced a deal in 2022 with robotics vendor Symbotic to implement automation in 42 distribution centers. Walmart owns more than 13% of Symbotic’s stock. The FoxBots are tested for over a year, unloading pallets and integrating them into Symbotic’s automated system, which catalogs and stores goods.
The Future of Warehouse Operations
While automation promises to reduce labor costs and dependence on human labor, Walmart spokesperson Camille Dunn emphasizes that “people will always be part of our warehouse operations.” The company views automation as a means to create new technical roles for associates and other employment opportunities, rather than as a cause for job cuts. Despite the potential benefits of robotics, their long-term feasibility can be uncertain, and humans can adapt faster to changes in the environment.
