[Market Trend] How Walmart Is Automating Its Supply Chain to Deliver the ‘Perfect Order’ | WSJ Shipping Wars



📌 The Arrival of the Era of Unmanned Logistics


Walmart utilizes a robot named Alphabot to swiftly pick items for online orders, crucial for accelerating delivery speeds to compete with Amazon and Target. By 2025, 65% of Walmart's stores are expected to be serviced by automation. Their Market Fulfillment Centers (MFCs), which are much smaller than Walmart Super Centers, represent the company's latest e-commerce fulfillment strategy with a smaller footprint. As the largest grocer in the U.S., Walmart is leveraging its extensive store network to provide various delivery options, with groceries as a central focus. The automated system not only ensures accuracy but also speeds up the picking and packing process, allowing for rapid shipping. Walmart's MFCs, separate from the shopping floor inventory, reduce in-store congestion and enhance order precision. With plans to open more than a hundred MFCs in the coming years, Walmart is not abandoning traditional distribution models but is also investing in large, automated next-generation fulfillment centers to achieve next-day or two-day delivery across most of the U.S. Walmart is also focusing on digitizing its supply chain and utilizing AI and ML for better forecasting and inventory placement. Although e-commerce delivery is not inherently profitable, Walmart is investing in automation to save costs and improve efficiency. While the company is adapting to automation, it is not reducing its workforce but is retraining employees for new roles that require different skills. Walmart aims to deliver the 'perfect order' with the right items, in the right location, at the right time, and with precise accuracy, as it continues to compete with Amazon and other retailers in the e-commerce domain.


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