Walmart to build 5 distribution centres for ‘grocery transformation’

Walmart has outlined plans to transform its grocery supply chain by building five new “high tech” perishable goods distribution centres (DCs.)

The US retail giant said that “state-of-the-art technology” at the new facilities would mean that those who previously stacked cases could potentially work in new roles, for example as automation equipment operator, developing their position to become automation control centre operator, automation technician or automation area manager.

The move is forms part of the company’s wider investment in data, intelligent software, and automation to better connect its supply chain.

Walmart currently has over 4,600 stores in its grocery network, along with a growing pickup and delivery business.

Walmart said the technology would increase the speed and capacity with which it could service its customers.

The new DCs can store around double the amount of produce as a traditional warehouse and can process twice as many cases of produce per hour.

The new DCs will store cases of produce in a temperature-controlled automated storage system.

When fulfilling a store order, pallets are built by department, which Walmart says makes them easier to unload at stores.

It added that they are “intelligently layered” which means more fragile items are stored on top.

The company also revealed plans to expand four traditional distribution centres and upgrade another located in Florida.

Commenting on the news Dave Guggina, executive vice president, supply chain operations at Walmart US, said that the new technology would allow the firm to provide goods to customers “whenever and wherever” they want.

“Technology is evolving physically demanding jobs into roles where associates are operating and maintaining high-tech systems, leading to an improved quality of life,” he added. “For example, associates who used to manually stack cases may work in a high-tech facility as an automation equipment operator and continue growing their career as an automation control centre operator, automation technician or automation area manager.”



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