In a fresh example of how technology is transforming retail logistics, Walmart has entered into a deal with Symbotic, a robotics and automation-based company focused on transforming traditional consumer goods supply chains, to revamp its regional distribution network, the companies have announced.
They stated that the new agreement continues on an existing initiative. Symbotic first implemented its automated supply chain system in Walmart’s Brooksville, FL, distribution center in 2017. Since then, the companies have worked together to optimize the system as it functions for the retailer.
Now, in the aftermath of the new announcement, Symbotic will begin outfitting 25 additional regional distribution centers to advance Walmart’s work toward operating a best-in-class supply chain, according to the companies. By implementing Symbotic’s system, Walmart will modernize and digitize existing supply chain facilities to support evolving consumer demand and enhance customer experiences. Symbotic’s scalable, integrated system uses fully autonomous robots and proprietary software to deliver throughput efficiency while increasing warehouse capacity, the companies asserted. As designed, the new system can reduce the time it takes to unload, sort and stock freight in Walmart stores. As the system rolls out, Walmart will offer employees training designed to prepare them for the jobs that will result as new processes come online with the overall goal of organizing the supply chain to increase productivity and reduce costs.
In announcing the deal with Symbotic, Joe Metzger, Walmart evp/supply chain operations, said digital transformation is occurring as customer habits are evolving, and that’s a combination that is inevitably reshaping the retail industry.
“To serve customers now, and in the future, our business must provide the right tools and training to our associates so they can deliver the items our customers want, when they want them, with unmatched convenience,” he said. “We’re investing in our supply chain at an unprecedented scale in order to optimize that process end-to-end.”
Rick Cohen, Symbotic CEO, said, “There is no greater validation of our efforts to use technology to reimagine the warehouse and supply chain than our work with Walmart. We set out more than 15 years ago to dramatically improve America’s legacy warehouses and supply chain to provide better and faster service to American consumers with new career opportunities for workers. Working with customers like Walmart has enabled us to develop this total solution, and with this trust, we are now positioned to develop Symbotic-powered warehouses around the country for years to come.”
Or course, Walmart isn’t the only retailer that is employing greater automation in its supply chain, with the Kroger Co. in the United States and Sobey’s in Canada conspicuous examples, as both have recently begun operations in automated warehouses based on a design developed by Ocado in the United Kingdom. As for the retailer, as reported by Home Page News, Walmart has lately pointed out that it is investing in capacity ahead of demand to handle expected growth effectively.
