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Diving overview:
- Walmart has opened its third next-generation fulfillment center in Lancaster, Texas, in preparation for holiday demand, according to an Oct. 17 press release.
- The 1.5 million square foot facility near Dallas is one of five recently announced. With this facility, the retailer can fulfill more orders faster by using an automated high-density storage and retrieval system that condenses the retailer’s 12-step fulfillment process into her five steps. I said it would be possible.
- “These technology-enabled jobs will help Walmart accelerate shipping and delivery in time for the holidays to customers across the South Central United States,” said Karisa Sprague, senior vice president of Fulfillment Network Operations at Walmart US. It will drive a future of continued commitment.” In the release.
Dive Insight:
Walmart continues to leverage automation as demand for its fulfillment services increased more than 50% quarter-over-quarter in the second quarter, according to an Aug. 17 earnings call.
In response to increased demand, the retailer doubled down on its use of technology to enable faster deliveries and simplify shipping.
In June 2022, Walmart announced plans for multiple next-generation fulfillment centers. In addition to the Texas facility, the retailer has already opened two centers in Joliet, Illinois and McCordsville, Indiana. Walmart plans to open two more stores in Stockton, California and Greencastle, Pennsylvania.
The “next generation” facility will expand retailers’ access to next-day and next-day delivery by combining services with Walmart’s fulfillment network. This collaborative process is expected to allow Walmart to reach 95% of the U.S. population. Walmart Fulfillment Services, Walmart’s end-to-end third-party fulfillment service, will also utilize this space to fulfill Marketplace products.
CFO John David Rainey said the company was pleased with the performance metrics of its newly automated distribution and fulfillment facility, saying, “The center is delivering 30 more units per hour compared to non-automated buildings. % higher efficiency has been achieved.”
Walmart also named Kieran Shanahan chief operating officer to guide the retailer through changes brought about by investments in its supply chain, the retailer announced during its second quarter earnings call.