An automated distribution center delivers twice the throughput with half the staff, Walmart's CFO said.Justin Sullivan/Getty ImagesWalmart's 4,600 US stores are supported by a network of 42 regional distribution centers.Of those 42, there's "some level of automation" at 15 of them, CFO John David Rainey said.When a DC is automated, Rainey said it sees as much as a 4X leap in efficiency.Walmart's store fleet is staggeringly huge, and the operation to support it is similarly massive.The retailer's 4,600 stores are supported by a network of 42 regional distribution centers — sprawling warehouses of up to 1.5 million square feet that typically employ around 1,000 workers, according to logistics consultancy MWPVL.Of those 42 DCs, Walmart CFO John David Rainey said the company has 15 that now have "some level of automation," serving about 1,700 stores.Speaking at the Evercore ISI Consumer and Retail Conference on Wednesday, Rainey revealed an utterly bonkers statistic when one of these facilities is fully dialed up."When we automate one of these DCs, we see roughly twice the throughput with half the head count.
Walmart Sees A Bonkers Improvement When It Automates A Warehouse
dreuter@businessinsider.com (Dominick Reuter), Business Insider
Thu, 06/13/2024 - 10:06am
Topics: they walmart's cfo justin sullivan/getty imageswalmart mwpvl walmart cfo john david rainey evercore isi consumer retail conference jefferies corey tarlowe as walmart oppenheimer walmart us ceo john furner walmart cfo us rainey cfo john david rainey dc dcs business insider furner sees bonkers distribution automation center stores network supported level count regional staff years throughput math compelling cost head fulfillment automated e-commerce
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