Dive Brief:
- Walmart is installing automation at two regional distribution centers — one in Arizona and the other in Arkansas, according to an email sent to sister publication Supply Chain Dive.
- The tech enables Walmart to double the number of processed cases per hour compared to a traditional regional distribution center.
- By the end of 2025, Walmart aims to have 65% of stores receive merchandise from high-tech distribution centers, per the email. The Arizona and Arkansas projects are slated to be completed in phases over the next several years.
Dive Insight:
The additions are part of Walmart’s larger effort to renovate 42 of its regional distribution centers in a bid to modernize its supply chain network. The big box retailer has been heavily investing in developing its supply chain of the future, enabling it to reach a carbon emissions reduction target, build out its drone delivery program and more.
Regarding facility improvements, in July Walmart announced plans to add five new automated distribution centers to its grocery footprint. The improvements will enable the company to double storage and volume processing capacity. Earlier this year, Walmart also opted to improve its supply chain transparency with a third milk-processing facility with the aim of gaining more control over its operations and to keep prices low.
Technology also plays a leading role in Walmart’s new consolidation center near Chicago, which consolidates less-than-truckload shipments from suppliers.
Walmart’s facility in Buckeye, Arizona, has been in service for nearly 25 years, according to the release. Across the state, the big box retailer operates three distribution centers and 124 retail stores. Meanwhile, its distribution center in Searcy, Arkansas, has been in service for roughly 35 years. Walmart operates eight distribution facilities and 131 retail stores in Arkansas.
