Walmart has recently unveiled a massive automated fulfillment center in Lancaster, Texas, which is expected to provide faster delivery to customers. With its three-level, 1.5-million-square-foot facility, Walmart aims to process twice as many orders as its other fulfillment centers, enabling it to ship hundreds of thousands of orders per day.
The opening of this fulfillment center is part of Walmart’s strategic move to compete more directly with Amazon in the online shopping sphere. While Walmart has already established its dominance in online grocery shopping, it has been lagging behind Amazon in terms of the online market share of general merchandise sales. By investing in automated technology and expanding its fulfillment capabilities, Walmart hopes to close this gap and capture a larger portion of the US online retail market.
One advantage of the new facility is its ability to receive and ship third-party sellers’ goods. This feature has been instrumental in Amazon’s success, allowing the company to expand its product range and generate significant revenue. By offering a similar service, Walmart aims to attract more sellers to its platform and increase its product selection.
Not only does this fulfillment center promise faster delivery and expanded product offerings, but it also creates a better working environment for employees. The automated processes have significantly reduced the number of product handlings required, from 12 to 5, minimizing physical strain on workers. Additionally, the facility has implemented efficient packaging practices, reducing packaging materials by 60% and creating a more sustainable approach to order fulfillment.
To accommodate the growing workforce required to operate the fulfillment center, Walmart has been offering some of its highest hourly wages in the North Texas region. The facility is set to employ around 1,000 full-time workers by the 2024 holiday season. Approximately 500 employees have already been hired, with half of them transferring from other Walmart jobs.
With the addition of this automated fulfillment center in Lancaster, Walmart aims to enhance its delivery capabilities and improve the overall online shopping experience for its customers. By working in conjunction with its existing network of 4,700 stores, Walmart plans to offer next-day delivery to customers and two-day delivery to 95% of the US. Through automation and technological advancements, Walmart is positioning itself as a formidable competitor to Amazon, leveraging its logistical prowess to meet the demands of the modern e-commerce landscape.
