Walmart flaunts supply chain automation investments to shareholders

Supply chain automation is a hot topic in the world of retail, and not just for e-commerce companies. At a meeting with investors in early April, Walmart executives outlined the company’s investment in emerging technologies to help streamline its supply chain.

Investors were treated to a tour of a 1.4 million square foot distribution center in Brooksville, Florida, where much of the work to unload goods from trailers has been automated.

The driverless forklifts in Florida are part of Walmart’s “new and different supply chain,” said president and CEO Doug McMillon in the April 4 investment meeting.

“Our supply chain will become more automated, more connected and increasingly intelligent,” McMillon told shareholders.

Walmart estimates that by 2026, ~65% of all stores will have some kind of automation, and that ~55% of “fulfillment center volume will move through automated facilities.”

“We’re building a scaled system of supply chain capabilities that requires a combination of data, software, and robotics,” CFO John David Rainey told investors in an April 5 presentation.

And he says those bets are already paying off.

“The investments in automation are already far exceeding our productivity targets, in some cases almost 30% better, as we are able to flow inventory at lower costs and with less manual labor,” Rainey said.

Zoom out: The flashy display comes amid concerns about warehouse layoffs at both Walmart and rival retail giant Amazon. On April 3, Bloomberg reported Walmart would lay off more than 2,000 positions at five fulfillment centers around the country.