Walmart taps automation technology for next generation fulfilment centres

Walmart has announced plans to build four new fulfilment centres. These will implement automation technology that provides customers and Walmart+ members with access to next or two day shipping on millions of items.

Locatons include McCordsville, Indiana, and Greencastle, Pennsylvania.

Walmart has partnered with Knapp to develop an automated, high-density storage system that streamlines a manual, 12 step process into five steps.

The retailer says that this results in double the storage capacity and double the number of customer orders it’s able to fulfil in a day. 

“Our new next generation fulfilment centre is a first of its kind for Walmart that will transform the way we ship online orders to customers,” says David Guggina, Senior Vice President, Automation, and Innovation at Walmart.

“Through our automated storage system and patent pending five step process, we’ll not only provide increased comfort for associates but also double the storage capacity and double the number of customer orders we’re able to fulfil in a day.”

“We’re thrilled to be bringing this high-tech fulfilment centre and more than 1,000 supply chain jobs to Greencastle and the south-central region of Pennsylvania,” says Karisa Sprague, Senior Vice President, Supply Chain E-commerce Fulfilment at Walmart.

“We continue to modernise our supply chain network and prepare for growth in our digital business, and this new facility will play an integral role in helping us serve even more customers and Walmart+ members with access to fast shipping on millions of items.”

Drone delivery

Last month, Walmart said it would expand its DroneUp delivery network to 34 sites by the end the year, providing the potential to reach four million US households across six states – Arizona, Arkansas, Florida, Texas, Utah and Virginia.

The move provides the ability to deliver over one million packages by drone in a year.

Between the hours of 8:00 a.m. and 8:00 p.m., customers will be able to order from tens of thousands of eligible items for delivery by air in as little as 30 minutes. The total weight of delivery is up to 10lbs and the fee is $3.99. 

Walmart is also planning to scale its drone infrastructure, offering local businesses and municipalities aerial drone solutions in areas like insurance, emergency response and real estate.  

“After completing hundreds of deliveries within a matter of months across our existing DroneUp hubs, we’ve seen firsthand how drones can offer customers a practical solution for getting certain items, fast,” says David Guggina, Senior Vice President of Innovation and Automation, Walmart U.S.

“More importantly, we’ve seen a positive response from our customers that have used the service.”

“In fact, while we initially thought customers would use the service for emergency items, we’re finding they use it for its sheer convenience, like a quick fix for a weeknight meal. Case in point: the top selling item at one of our current hubs is Hamburger Helper.”

Participating stores will house a DroneUp delivery hub inclusive of a team of certified pilots, operating within FAA guidelines, that manage flight operations for deliveries.

Once a customer places an order, the item is fulfilled from the store, loaded into the drone and delivered to their yard using a cable that lowers the package.