Walmart unveils next steps in grocery network transformation
What is the future of Walmart’s grocery network?
Dave Guggina, executive vice president, supply chain operations at Walmart U.S., shared the company’s news about its grocery transformation in a post on the retailer's website.
Guggina emphasized that as customers change the way they shop, Walmart is 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 this, Walmart has been investing in data, increasingly intelligent software and automation to transform its business and create a more connected supply chain.
“In the same way we added technology across our ambient and fulfillment networks, I’m excited to share more about the future of our grocery network, Guggina said, providing the following approaches to its grocery transformation:
New builds. We’re building five brand new high-tech perishable distribution centers. Our first high-tech DC in Shafter, Calif. has been operational since 2021. The second, located in Lancaster, Texas, is ramping operations and will be followed by Wellford, S.C.; Belvidere, Ill.; and Pilesgrove, N. J. Collectively, these facilities bring around 2,000 new jobs into these communities and our supply chain network.
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Expansions. We’re expanding four traditional perishable DCs by adding over 500,000 sq.-ft. of automation per site to increase capacity for fresh product. We will expand facilities in Mankato, Minn.; Mebane, N.C.; Garrett, Ind.; and Shelbyville, Tenn.
Retrofits. Our Winter Haven, Fla. perishable distribution center is getting upgraded, as we integrate the newest technology into the space. Our goal is to learn more about the feasibility and requirements of retrofitting an existing grocery building with automation technology – similar to how we have approached our ambient distribution center in Brooksville, Fla.
Guggina added, “Our business is growing. Walmart is the largest grocery retailer in the U.S., with our grocery network supporting over 4,600 stores with a massive pickup and delivery business that continues to grow as customers seek the convenience and value we offer. That’s why we’re adding state-of-the-art tech to our facilities: to enable greater speed and capacity that allows us to serve customers even more reliably. For example, these high-tech DCs can store double the number of cases and process more than twice the volume of a traditional perishable DC, more than doubling the number of cases processed per hour.”
Guggina explained how the technology works:
As cases come in from farmers and suppliers, they’re inspected for quality and de-palletized.
The cases are then stored in an automated storage system that stretches nearly 80 ft. tall and operates in a temperature-controlled environment.
When it’s time to build a store order, the system retrieves the cases from storage to begin building store-ready pallets, which are built by department, making them easier to unload at the store.
These intelligently layered pallets – with more fragile items, like eggs or fruit, toward the top – are then wrapped and loaded onto a truck for shipping.
“We’re excited about what this technology will do for our business, but more than that, we’re excited about the opportunities it will create for associates,” Guggina said, adding, “Technology is evolving physically demanding jobs into roles where associates are operating and maintaining high-tech systems, leading to an improved quality of life.”
Guggina continued, “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 center operator, automation technician or automation area manager. Plus, associates who have transitioned into these new roles tell us they are more enjoyable and satisfying, while also often resulting in higher base pay.”
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Lastly, Guggina said, “We remain committed to meeting customer demand, embracing technology and bringing our people alongside the technology as we transform our supply chain. With our investments in our associates and facilities, I’m confident we’re well-positioned to continue providing customers the items they want, whenever and wherever they want them, for years to come.”