Walmart China ramps up DC investment

Walmart is set to invest $1.2 billion to upgrade logistics in China.

It is looking to build or revamp more than 10 logistics distribution centres over the next 10-20 years. This follows on from the US giant investing over RMB 700 million to construct the South China Fresh Food Distribution Centre, which has been in operation since March. It currently serves more than 100 Walmart stores in Guangdong and Guangxi, with daily distributing capacity of up to 165,000 cases of products.

“Walmart continues to increase investment in supply chain logistics in order to enable our omnichannel development, continue to provide our Chinese customers with great fresh products, and improve our service,” says Ryan McDaniel, Senior Vice President of Walmart China Supply Chain.

Blockchain initiative

Last week, we reported that Walmart China was tracking food through its supply chain with VeChain’s Thor blockchain.

The Walmart China Blockchain Traceability Platform is a joint venture between Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co. and VeChain. The first batch of 23 product lines have been tested and launched on the platform and another 100 are set to follow by the end of the year, covering more than 10 categories including fresh meat product, rice, mushrooms and cooking oil.

The aim is for traceable fresh meat to account for 50% of the total sales of packaged fresh meat, traceable vegetables to account for 40% of the total sales of packaged vegetables, and traceable seafood for 12.5% of the total sales of seafood by the end of 2020.

“We have always worked to provide reliable products of quality and convenient services to customers, which is our core value proposition,” said Shi Jiaqi, Chief Corporate Affairs Officer of Walmart China.

“With this target in mind, Walmart has continuously invested in the whole supply chain, from source procurement and commodity strategy, supply chain construction, to store and e-commerce platform operation management. We use digital methods to improve efficiency and transparency, providing products and services of quality to customers and making life better for busy families in China.”