Walmart is set to transform its supply chain operations by implementing automation technology in two of its regional distribution centers, aiming to double productivity and enhance efficiency.
Walmart’s Automation Drive
Walmart is embarking on a significant automation project in two of its regional distribution centers, located in Arizona and Arkansas. This move is expected to double the number of processed cases per hour compared to a traditional regional distribution center, marking a significant leap in productivity.
Aiming for High-Tech Distribution
By the end of 2025, Walmart plans for 65% of its stores to receive merchandise from these high-tech distribution centers. The automation projects in Arizona and Arkansas are part of this ambitious plan and are expected to be completed in phases over the next few years.
Modernizing the Supply Chain
This automation initiative is part of Walmart’s broader strategy to modernize 42 of its regional distribution centers. The retail giant is heavily investing in creating a future-ready supply chain, with goals including carbon emissions reduction and the development of a drone delivery program.
Facility Improvements and Technological Advancements
In July, Walmart announced plans to add five new automated distribution centers to its grocery division, aiming to double storage and volume processing capacity. The company is also enhancing supply chain transparency with a third milk-processing facility. Technology plays a pivotal role in these advancements, as seen in Walmart’s new consolidation center near Chicago, which consolidates less-than-truckload shipments from suppliers.
Long-Standing Facilities Undergoing Transformation
Walmart’s facility in Buckeye, Arizona, has been in service for nearly 25 years, while its distribution center in Searcy, Arkansas, has been operational for approximately 35 years. These long-standing facilities are now set to undergo a transformation that will redefine their operations and set a new standard for Walmart’s supply chain.
Walmart’s automation efforts in Arizona and Arkansas reflect the company’s commitment to enhancing productivity and efficiency in its supply chain operations. With a focus on high-tech distribution, modernization, and facility improvements, Walmart is paving the way for a more streamlined and sustainable future in retail logistics.
