During its recent 2023 Investment Community meeting, Walmart leaders highlighted where the company is investing to strengthen its business, sharing that resources are going into developing a more efficient supply chain network and facilitating an omnichannel system.
“We are in a unique position to serve our customers and members however they want to shop, which will fuel continued growth,” said Doug McMillon, Walmart president and CEO, in a statement. “As we grow, we will improve our operating margin through productivity advancements and our category and business mix, and drive returns through operating margin expansion and capital prioritization.”
During the meeting, the company unveiled a plan for a more connected, automated supply chain that will improve the customer and associate experience while increasing productivity.
Walmart is reengineering its supply chain to fulfill customer needs with a more intelligent and connected omnichannel network enabled by greater data use, more intelligent software, and automation. The outcome improves in-stock, inventory accuracy, and flow whether customers shop in stores or online, according to the company.
Walmart showcased its supply chain innovation Tuesday at its Brooksville, Florida regional distribution center, as one piece of how the company is building a scaled system of supply chain capabilities that uses a combination of data, software, and robotics. Through automation and technology, the company showed how increased item storage allows the distribution center to provide a more consistent, predictable, and higher-quality delivery service.
By the end of FY 2026, Walmart believes roughly 65 percent of stores will be serviced by automation, 55 percent of the fulfillment center volume will move through automated facilities, and unit cost averages could improve by approximately 20 percent.
The shift to automation means that workers’ roles will shift. Walmart said that future roles will require less physical labor but have a higher pay rate.
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