USA – Retail giant Walmart has announced plans to construct five new high-tech warehouses to speed up the distribution of perishable goods to all its 4,600 stores.
The new distribution centers will be located in South Carolina, Wellford, Illinois, Belvidere, and New Jersey. The distribution centers (DC) are similar in design and operation to the one located in Shafter, California.
The DCs will be equipped with automated technologies to handle temperature-sensitive commodities like groceries, dairy, and meat. They will automatically detect temperature changes and correct any significant changes that may cause the products to spoil quickly.
They will also include an 80-foot storage structure accessed by automated conveyors, lifts, and de-palletizing robots and algorithms that will determine optimum product placement.
The DCs are also expected to significantly increase the company’s store holding capacity. Walmart revealed the five new facilities have the capacity to double the number of cases stored and process twice the volume of the current ambient temperature DCs.
The company also announced plans to retrofit an already-existing perishable distribution center in Winter Haven, Florida.
The new DCs are an extension of the company’s increased investments in technology in its supply chain and distribution network as it seeks to broaden its category lead over Amazon.
Walmart announced its automation plans during its 2023 investors meeting. The plan aims to utilize high-tech distribution centers to serve at least 55% of its grocery volumes by the end of 2026.
The company is on track to meet this objective with the new DCs. The company projects the five new automated DCs will support 1,500 stores throughout the US.
David Guggina, Walmart US’ Executive VP for Supply Chain Operations, said, “As customers change the way they shop, we’re taking steps to build even more trust with them, ensuring the things they want — and need — are on shelves faster than ever before. To do that, we’ve been investing in data, increasingly intelligent software, and automation — all to transform our business and create a more connected supply chain.”
The company also incorporated automation in new fulfillment centers and high-tech consolidation centers early in the year.
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