This holiday season, Walmart is trying to deliver toys and coal in one day, but AI will be pulling the sleigh.
America’s largest employer and retailer is on track to modernize its inventory and distribution systems, and this winter will be the first test of its “next-generation supply chain,” the company announced Tuesday. did. The system is patent-pending and uses real-time data to help the company ensure maximum efficiency across all stores and regions.
For example, stores in Minnesota will no longer stock swimwear, and warehouses in Florida will no longer stock snow blowers. If New Yorkers are interested in fuzzy socks this year, New York Walmart stores are sure to have them.
An upgraded inventory management system will allow Walmart (WMT) to roll out more same-day delivery slots at its 4,000 stores and compete with Amazon (AMZN). The service relies on Walmart’s ability to ensure each store is stocked with the products likely to sell best in a given region, allowing 80% of the U.S. population to get stocking stuffers in just 30 minutes. become.
“Technologies such as real-time data, AI, and robotics play a critical role in strengthening our ecosystem,” David Guggina, vice president of supply chain operations at Walmart, told Yahoo Finance spoke exclusively to.
Retailers are in a difficult position this season. It’s a tough time for consumers, with inflation lingering and interest rates likely to remain at 22-year highs. But Walmart has experienced strong e-commerce growth over the past year, and investments in technology could further increase online sales, Jefferies’ Corey Tarlow wrote on Oct. 20.
“Walmart is in the process of implementing automation within the region.” [distribution center], has built four next-generation fulfillment centers and is expanding its market fulfillment centers. We believe that additional capacity and efficiencies are key to the growth of Walmart Fulfillment Services and its services. [online] Market,” Tarlow wrote.
Walmart reported in August that its e-commerce sales worldwide increased 24% year over year.
A more efficient inventory system can help reduce shipping costs and increase Walmart’s ability to continue providing valuable products to customers.
Additionally, the company is working to expand next-day and next-day delivery options to 90% of the U.S. population. To that end, Walmart has added three new fulfillment centers in Illinois, Indiana, and Texas that promote robotics and automation. The retailer has also invested in and partnered with robotics company Symbiotic (SYM).
“Walmart’s inventory systems are becoming more sophisticated and autonomous by leveraging these systems and their AI. [and machine learning] It’s been a model for a while,” Parvez Musani, SVP of E2E Fulfillment at Walmart, exclusively tells Yahoo Finance.
Walmart is expanding its expedited delivery services to meet or exceed evolving consumer expectations. When it comes to delivery times, Amazon’s e-commerce dominance and its much-vaunted two-day delivery guarantee have significantly compressed shopper expectations over the past decade.
Guzzina said Walmart’s extensive brick-and-mortar network of 4,700 stores within 10 miles of 90% of the U.S. population will be a unique asset for the company’s rapid delivery operations.
If successful, this holiday season will serve as a launch party for the legacy brand’s AI efforts, which Mussani calls “the cornerstone” of Walmart’s future innovation efforts.
Allie Garfinkle I’m a senior tech reporter at Yahoo Finance. Follow her on X (formerly Twitter). @agarfinks And even more linkedin.
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