Walmart installs logistics automation equipment, doubling distribution center efficiency

Walmart recently announced that it will install automated equipment in its two regional distribution centers in Arizona and Arkansas, aiming to significantly improve production efficiency. Compared with traditional logistics centers, this new technology will double the number of shipments Walmart handles per hour, greatly increasing its shipment processing capacity.

Walmart plans to have 65% of its stores receive merchandise from these high-tech distribution centers by the end of 2025, and the two regional distribution center projects are expected to be completed in phases over the next few years. The addition of the facilities is part of Walmart's massive transformation to modernize its supply chain network to achieve its carbon reduction goals and initiatives such as drone delivery.

At the same time, Walmart is also actively expanding its automation layout in its grocery business, planning to add five new automated distribution centers, which are expected to double its storage and batch processing capabilities. In addition, Walmart has earlier selected a third milk processing plant to increase supply chain transparency, with the aim of better controlling its operations and keeping prices low.

Technology is also playing a leading role at Walmart’s new logistics consolidation center near Chicago, which is responsible for aggregating less-than-truckload shipments from multiple suppliers.

Walmart's Buckeye, Arizona, distribution center has been in operation for nearly 25 years and operates three distribution centers and 124 retail stores throughout Arizona. Meanwhile, its Searcy, Arkansas distribution center has been in operation for about 35 years and operates eight distribution centers and 131 retail stores in Arkansas.

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