Walmart announced an investment of some six billion US-Dollars (5.3 billion Euros) over several years to further automate its supply chain, leveraging the technology of US-based robotics specialist Symbotic. The deal aims to improve upstream inventory management for e-commerce operations, increase storage capacity and accelerate the flow of goods through Walmart’s distribution network.
The agreement would expand the Symbotic solutions to 25 of the retailer’s 42 regional distribution centres dotting its home market, while also extending automation capabilities across Walmart’s wider global supply chain network.
Symbotic’s platform combines AI-powered software with autonomous robotics for merchandise storage, retrieval and sorting. It also features specialised modules for partial-case picking (dubbed Break Pack) and e-commerce micro-fulfillment under the name Sym Micro. Symbotic has been a longstanding supplier of Walmart, the retailer holding a 12 per cent stake in the solution provider.
Walmart’s automation reportedly faces operational hurdles
The announcement comes amid ongoing challenges in scaling warehouse automation. According to the Wall Street Journal, Walmart and Symbotic have reportedly encountered difficulties in achieving targeted throughput levels. The automated warehouses had experienced breakdowns caused by a range of factors, from dust accumulation to legacy non-standard cardboard causing mispicks in the automated systems.
Robot reliability reportedly remains an operational concern despite a number of Symbotic’s robots undergoing repairs at any given time halved, sitting at 5 per cent currently. “We know that if we wait till perfect, it’ll take too long,” said Rob Montgomery, Executive Vice President, Supply Chain Operations at Walmart US. As such, this multi-billion-dollar investment plan underscores Walmart’s drive to scale automation and keep pace with major retail rivals, most notably Amazon.
