Walmart will open a 400,000-square-foot consolidation facility in Lebanon, Pennsylvania this month. It's the second of its kind in the Walmart supply chain. The first opened in Colton, California in 2019.
Consolidation centers quickly move product, improving shelving rates and helping smaller- and medium-sized suppliers transport stock by allowing them to send items to one single location for consolidation instead of shipping to each of the 42 regional distribution centers, according to the retailer. From the consolidation center, product is shipped and sorted via Walmart to distribution centers, where it is sorted and sent to stores. This facility will service all 42 regional distribution centers in the U.S. with plans to service fulfillment centers.
“We’ve made continued investments in our people, facilities and technology to ensure we have the right product, in the right place, at the right time,” said Mike Gray, senior vice president, supply chain operations at Walmart, in a statement. “As part of these investments, the Lebanon facility will provide even more opportunities for small to medium sized suppliers who do not ship nationwide, the ability to provide product to all 4,700 Walmart stores.”
Walmart said it has a broader focus on integrating technology within the supply chain, and noted that the creation of this facility is concurrent with its plans to renovate all 42 distribution centers with automated technology.
“Walmart is creating the future of supply chain—a modern system that pairs the latest in software and automation technologies, with a highly trained and specialized workforce of Walmart associates—to disrupt the industry as we know it,” said David Guggina, senior vice president of innovation & automation, Walmart U.S., in a statement. “At this facility, we’re implementing the technologies Walmart will continue to roll out throughout our supply chain network.”
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