Retail Giant Equips Regional Distribution Centers with Technology Aiming to Double Productivity
# Walmart Automates Supply Chain Facilities in Arizona and Arkansas
The retail giant is equipping its regional distribution centers with technology to double productivity.
Published on October 7, 2024
### Quick News:
– According to an email sent to Supply Chain Dive, Walmart is installing automation equipment at two of its regional distribution centers in Arizona and Arkansas.
– The technology allows Walmart to process twice as many items per hour compared to traditional regional distribution centers.
– As stated in the email, by the end of 2025, Walmart plans for 65% of its stores to receive goods from high-tech distribution centers. Projects in Arizona and Arkansas are expected to be completed in phases over the next few years.
### In-Depth Insights:
These new facilities are part of a larger plan by Walmart to modernize its supply chain network through the transformation of its 42 regional distribution centers. The large supermarket retailer has been heavily investing in developing its future supply chain, enabling it to achieve carbon emission reduction goals and establish drone delivery programs.
Regarding facility improvements, in July this year, Walmart announced plans to add five new automated fulfillment centers to its grocery delivery network. These enhancements will enable the company to double its storage and processing capacity. Earlier this year, Walmart also improved transparency in its supply chain by adding a third milk processing facility to gain more control over operations and maintain lower prices.
Technology plays a significant role at Walmart’s new consolidation center near Chicago, which integrates less-than-truckload shipments from suppliers.
According to the announcement, the facility in Buckeye, Arizona has been operational for nearly 25 years. In this state, the large retailer operates three distribution centers and 124 retail stores. Meanwhile, its Searcy, Arkansas distribution center has been operating for about 35 years. Walmart runs eight distribution facilities and 131 retail stores in Arkansas.
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Source: Supply Chain Dive
