Walmart has begun construction of four new high-tech fulfillment houses in Illinois, Indiana, Texas, and Pennsylvania try to keep up with Amazon in delivery speed.
On Friday, June 3, Walmart revealed plans to create four fulfillment centers that will utilize automation to pack and transport online goods more effectively.
David Guggina, SVP Supply Chain at Walmart said: “These FCs (fulfillment centers) will be the first of their kind for Walmart, using the powerful combination of people, robotics, and machine learning to set an entirely new precedent for us on the speed of fulfillment.”
Customers may expect next-day or two-day delivery for larger online orders, something Amazon members have long been accustomed to.
Employees at fulfillment centers must presently walk around the facility to locate things before packing.
The automated system will now retrieve products from storage and transport them to a location where workers will package them.
Guggina added: “Most impressively, these four next-generation FCs alone could provide 75 percent of the U.S. population with next- or two-day shipping on millions of items.”
The Illinois fulfillment center will open this summer. The last three are scheduled to open within the following three years.
The concept was tested in a packing warehouse in Salem County’s Pedricktown.
In order to compete with Amazon, Walmart has taken many initiatives in recent years, including the launch of a membership club called Walmart Plus, which offers benefits such as free delivery, Spotify Premium, and gas discounts.
The retailer is presently holding “Walmart Plus Weekend,” a mega-shopping extravaganza akin to Amazon’s Prime Day. Walmart Plus customers enjoy unique deals and savings comparable to Black Friday.