Technology Doubles Storage Efficiency, Throughput

Walmart has made huge investments in its grocery DC network, driving huge gains in space utilization, throughput and service.

Supply Chain Digest Says... Walmart says the automation is good for DC workers too, arguing that “Technology is evolving physically demanding jobs into roles where associates are operating and maintaining high-tech systems, leading to an improved quality of life.” What do you say? Click here to send us your comments Click here to see reader feedback

As detailed in a blog post this week credited to Dave Guggina, Executive Vice President, Supply Chain Operations, Walmart US, investments in Walmart’s network include building five brand new high-tech perishable DCs. Its first high-tech DC is in Shafter, California has been operational since 2021. The second, located in Lancaster, Texas, is currently ramping up operations and will be followed by Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey.

Walmart is also expanding four traditional perishable DCs by adding over 500,000 square feet of automation per site to increase capacity for fresh product, expanding facilities in Mankato, Minnesota; Mebane, North Carolina; Garrett, Indiana; and Shelbyville, Tennessee.

The Walmart blog says its new technology allows it to 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.

Walmart says this is 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 feet 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.

Walmart says the automation is good for DC workers too, arguing that “Technology is evolving physically demanding jobs into roles where associates are operating and maintaining high-tech systems, leading to an improved quality of life.”

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It adds that “associates who have transitioned into these new roles tell us they are more enjoyable and satisfying, while also often resulting in higher base pay.”

Amazon and Walmart continue to duke it out in terms of DC automation.

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