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Walmart is opening five automated distribution centers to manage fresh food for its online grocery business across the U.S.
CNBC reports that each facility will be around 700,000 square feet — twice the size of a traditional distribution center — with automated storage and retrieval systems that can take items and move them to dense pallets that are then delivered to stores. The robotic systems know to stack more delicate items like eggs at the top of pallets, and can build custom piles for online grocery orders.
“We know what we own, in what quantity and where it is, all in near real time,” Walmart supply chain executive vice president Dave Guggina told CNBC. “And we know that at a level of proficiency that is significantly improved than what we’ve been able to achieve with manual processes or legacy software.”
Two of the five distribution centers have already opened — one in Shafter, California and the other in Lancaster, Texas. The other three will be built in South Carolina, Illinois and New Jersey. Walmart is also planning to incorporate automation into four of its other fresh food distribution centers in Minnesota, North Carolina, Indiana and Tennessee.
The company estimates that two-thirds of its stores will served by automation in some form by 2026, with the technology accounting for more than half of its fulfillment center volume.
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