Big box chain Walmart is having a successful 2024, so much so, that it is opening five new distribution centers. Specifically, the retailer is opening these facilities to keep up with customers’ increasing grocery demand. But, there is something else different about this expansion… They are fully automated.
Why Walmart Invested in Self-Sufficient Distribution Centers
As mentioned earlier, the five new locations are centered around the brand’s grocery business.
CURRENTLY, WALMART IS THE LARGEST GROCER IN THE UNITED STATES THANKS TO ITS ONLINE ORDER AND STORE PICK-UP OPTION.
The latest distribution centers will be used for fresh and perishable items. Therefore, the approximately 700,000 square foot spaces will have chilled and frozen sections.
However, these Walmart distribution centers are more than high-tech fruit and veggie storage…
The executive vice president of Walmart’s supply chain, Dave Guggina, says it’s about accuracy and efficiency.
“We know what we own, in what quantity and where it is, all in near real time. And we know that at a level of proficiency that is significantly improved than what we’ve been able to achieve with manual processes or legacy software.”
Via CNBC
In addition to providing stores with the inventory they need, robots pack pallets more safely for delivery than humans. This cuts down on product loss in transit.
Further, Walmart plans to add this tech to existing distribution centers that house shelf-stable items as well.
So, what does that mean for flesh and blood workers?
Will These Facilities Mean Fewer Human Jobs?
Walmart is the largest private employer in the US with 1.6 million employees. For that reason, automation reducing positions for people is a real concern.
In an interview with CNBC, Guggina said that there is a possibility there will be fewer jobs within the centers. Yet, he also added that it’s more likely the types of roles will change…
For example, automated Walmart distribution centers may not need forklift operators…
But, will need delivery drivers.
Additionally, the machinery within these facilities will still require human supervision.
Hopefully, this technology will make life easier for Walmart, its employees and its customers in the long run.
Be Great,
GCTV Staff
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