Walmart will automate its supply chain to double sales in three to five years

It is learned that according to foreign media reports, Walmart has recently made ambitious plans for its supply chain and its revenue growth.

Walmart said it will build a new, more connected and automated supply chain to improve the customer and employee experience while increasing productivity. The company expects more than half of its distribution centers to be automated within three years.

Walmart, on the other hand, is targeting 4% sales growth over the next three to five years to add more than $130 billion in sales to its current roughly $600 billion.

"The investments we've made will position us well to generate steady and sustained growth at higher margins," said John David Rainey, Walmart's executive vice president and chief financial officer.

Walmart said it is developing a supply chain network that will feature greater use of data, smart software and automation, an outcome the retailer hopes will improve inventory levels, inventory accuracy and flow across all logistics channels.

By the end of fiscal 2026, approximately 65% ​​of Walmart's stores will be served by automation, and approximately 55% of its logistics center business volume will be conducted through automated facilities, which will increase the average unit cost by approximately 20%.

The retail giant also showcased its fully automated facility in Joliet, Illinois, which covers an area of ​​1.1 million square feet and is the first of four state-of-the-art distribution centers that Walmart previously planned to open in the next three years. It is mainly used to store goods on Walmart.com and pick, pack and ship these goods to customers. In addition, the facility is also responsible for third-party market goods delivered by Walmart Logistics Services (WFS), providing end-to-end delivery services for third-party sellers.

The report said that once all four fully automated facilities are completed, Walmart will provide next-day or two-day delivery to 75% of the U.S. population. The other three facilities are located in McCordsville, Indiana, Lancaster, Texas, and Greencastle, Pennsylvania. The four facilities will employ more than 4,000 employees in total.

Walmart will also expand its partnership with artificial intelligence (AI)-based supply chain technology company Symbiotic LLC to deploy Symbiotic's robotics and software automation platform in all 42 of its regional distribution centers over the next few years, the retailer said.

It is worth mentioning that with the advancement of automated logistics centers, Walmart's labor force will be greatly reduced. The company said that one result of automation will be the emergence of roles that require less physical labor but have higher wages.

It is reported that Walmart is currently cutting thousands of jobs related to the e-commerce supply chain, including more than 1,000 layoffs at two e-commerce distribution centers in Texas, 600 layoffs at a facility in Pennsylvania, 400 layoffs at a center in Florida, and 200 layoffs at a center in New Jersey.

Editor ✎ Nicole/

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