Walmart takes on Amazon with new fulfillment centers to speed up deliveries
Facilities will open in Illinois, Indiana, Texas and Pennsylvania over next 3 years
Walmart is looking to give Amazon a run for its money by building four new "next generation" fulfillment centers to increase the delivery speeds of consumers' online orders.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 87.19 | +0.59 | +0.69% |
| AMZN | AMAZON.COM INC. | 202.88 | -1.73 | -0.85% |
The new fulfillment centers will provide 75% of the U.S. with next- and two-day shipping on millions of items, including marketplace items shipped by Walmart Fulfillment Services. Combined with its existing 31 ecommerce fulfillment centers and 4,700 stores, the retailer expects to reach 95% of the U.S. population with next- and two-day shipping and 80% with same-day delivery.
Walmart has partnered with intelligent fulfillment solutions firm Knapp to develop an automated, high-density storage system for the high-tech facilities, which will leverage robotics and machine learning. In addition, the facilities will collectively employ more than 4,000 supply chain associates serving in roles such as control technicians, quality audit analysts and flow managers.
WALMART EXPANDS DRONE DELIVER TO 4 MILLION HOUSEHOLDS
When shipments from sellers and suppliers arrive at the fulfillment center, associates will unload and place the cases onto a conveyor belt, where they will be routed to a receiving area. Once at receiving, an associate will break the case apart and place the individual items in a tote, which will be transported on the automated storage system to one of millions of designated locations.
Walmart has partnered with intelligent fulfillment solutions firm Knapp to develop an automated high-density storage system for the high-tech facilities, which will leverage robotics and machine learning.
Once a customer places an online order, the system will retrieve the items and shuttle the totes to an associate at a picking station while a custom box is created simultaneously to fit the exact measurements of the order. Walmart expects that associates will be able to assemble up to four orders at once and send packages to be shipped in less than 30 minutes after a customer places an order.
Walmart expects that associates will be able to assemble up to four orders at once and send packages to be shipped in less than 30 minutes after a customer places an order. (Walmart)
After being packed, the completed order is automatically taped, labeled and routed to its designated zone, where it will then be shipped to its final destination.
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The patent-pending concept, which has been tested at a Walmart fulfillment center in Pedricktown, New Jersey, is expected to double the company's storage capacity and the amount of customer orders fulfilled per day.
It will also increase comfort for Walmart associates by removing the need to walk up to 9 miles per day to pick up items from multiple floors spread across hundreds of thousands of square feet of space.
Walmart's first new high-tech fulfillment center is expected open in Joliet, Illinois, in summer 2022.
The first new, 1.1-million-square-foot fulfillment center will open in Joliet, Illinois, in summer 2022, followed by a 2.1-million-square-foot facility in McCordsville, Indiana, in spring 2023, a 1.5-million-square-foot facility in Lancaster, Texas, in fall 2023, and a 1.5-million-square-foot facility in Greencastle, Pennsylvania, in 2024.