Walmart’s Next Generation Fulfillment Centers

Walmart Inc. is a leading omnichannel retailer that relies on state-of-the-art technologies to offer the optimal customer experience.

Rising demand in e-commerce as well as the need to improve efficiency along the entire supply chain led Walmart to embark with us on a transformational mission. The aim was nothing less than to bring about revolutionary change to the company’s distribution centers.

Together, we have already built 4 of these ultra-modern fulfillment centers – the Next Generation Fulfillment Centers – and a fifth is soon to come. The state-of-the-art logistics centers have reduced a process involving 12 steps to just five steps, completely supported by software, which has also significantly improved the user experience for Walmart customers.

5 Next Generation Fulfillment Centers
871,000 ft² – 2.200.000 ft² warehousing space
per center

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KNAPP helps us to deliver everyday low costs so that we can deliver everyday low prices for our customers.

David Guggina
EVP, Chief eCommerce Officer, Walmart

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Putting the ultra-modern logistics centers to the test

Double the storage capacity
A manual process involving 12 steps was reduced to 5 steps. This saves time, effort and expense and doubles the number of orders processed per day.
Greater employee retention
Employees were averaging up to 9 miles a day (14 km), a figure drastically reduced by the solution’s simplified and smoothly running processes. Additionally, the ergonomic goods-to-person work stations have greatly improved employee satisfaction.
Faster deliveries for 95 % of the market
The four existing Next Generation Fulfillment Centers, which hold millions of items, already provide 75 % of the US market with next-day or two-day delivery. Together with its traditional fulfillment centers, Walmart covers 95 % of the market.
50% increase in productivity
The seamless interplay of all the components in the state-of-the-art logistics centers doubled the overall throughput and reduced the order lead time to 30 minutes.
Larger product range and more availability
The state-of-the-art logistics centers provide storage for a larger product range, allowing Walmart to offer much more value to its customers, especially during the Christmas season. Optimal availability ensures that the desired items are available when needed.
Lower costs
The integrated automation solutions made it possible to utilize resources efficiently and thus reduce operating costs. By adapting the shipping cartons perfectly to the respective order, optimal shipping costs were achieved.
Overview of the Evo Shuttle 2D in Walmart’s fulfillment center
Shuttle solution Evo Shuttle 2D with space for nearly 2 million containers.

We doubled our storage capacities compared to our traditional fulfillment centers.

David Guggina

EVP, Chief eCommerce Officer, Walmart U.S.

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5 central storage processes

Wareneingang in Walmarts Next Generation Fulfillment Center.

1) Unloading

At Walmart, unloaded cartons are either temporarily stored in the Evo Shuttle 2D automatic storage system or are conveyed directly to the decanting area. On the way, the cartons run through a scan tunnel. Here is where the “auto receive” takes place, automatically accepting delivery of the cartons. The process includes registering the weight, dimensions and labels of every carton.

Decanting-Prozess in Walmarts Next Generation Fulfillment Center.

2) Decanting and putaway

Employees working at the decanting stations empty the cartons arriving there and transfer the items to a storage container. Several container configurations are available. These newly filled storage containers move along a conveyor belt towards the Evo Shuttle 2D automatic storage system, where they enter storage. One of the system’s shuttles takes up the container and transports it to one of the million storage locations within the system. The shuttle storage system was designed to be especially compact, utilizing the entire height of the hall to ensure optimal storage density.

Kommissionierung in Walmarts Next Generation Fulfillment Center.

3) Picking

As soon as a customer order comes in, the source container is automatically retrieved from the Evo Shuttle 2D, transported to a lift and then on to one of the goods-to-person work stations of the Pick-it-Easy Evo series. Employees pick the order at one of the ergonomic, height-adjustable work stations. Here, 4 orders can be processed at the same time. If the order will not be shipped in a carton, it is initially picked into a container.

Vollautomatischer Kartonverschluss in Walmarts Fulfillment Center.

4) Packing

Orders that are picked to containers at the goods-to-person work stations are transported to the pack stations. Picked in batches, the orders are placed into the assigned shipping package with filling material to secure them during transport. The completed order is closed with adhesive tape, scanned and weighed, either automatically or semi-automatically, and provided with an address label. This process eliminates repetitive tasks and improves safety while simultaneously increasing speed, efficiency and precision.

Warenausgang in Walmarts Next Generation Fulfillment Center

5) Shipping

Once packing is completed, orders are automatically transported to the assigned zone and loaded onto vehicles that handle the last mile for the deliveries, either from Walmart transport services or a 3PL.

Right size packaging.
Prior to picking, the cardboard shipping cartons are automatically erected and tailored precisely to the size of the respective order, providing right size packaging. By reducing the air in the shipping cartons, the space in the transport vehicle is used more efficiently, reducing transported air at Walmart by about 60 percent. These tailored pack sizes furthermore lower shipping costs, reduce packaging waste and are 100 percent recyclable.

Customized shuttle solution for maximum storage capacity

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million storage locations per warehouse

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times more SKUs

One central focus of the Next Generation Fulfillment Centers is the automated storage and retrieval system, the Evo Shuttle 2D.

The scalable shuttle solutions installed at Walmart are some of the largest of their kind worldwide. One Walmart Next Generation Fulfillment Center offers space for nearly 2 million containers in a custom Evo Shuttle system. The automatic system’s high storage density ensures that Walmart can make optimal use of their available storage space, resulting in space for ten times as many SKUs as in a traditional fulfillment center. The automated storage system allows Walmart to process double the number of customer orders per day, so Walmart can ship items to their customers faster and, at the same time, provide a positive work environment for their employees.

Software and service to order

We also rely on customized software and service solutions to meet Walmart’s individual requirements for its state-of-the-art logistics centers. Our KiSoft suite ensures that all the processes in Walmart’s Next Generation Fulfillment Centers function smoothly and efficiently. Supplementary digital services and our trained KNAPP employees are also always at Walmart’s side.

 

Other things Walmart relies on: 

  • KiSoft Analytics
  • KiSoft CMMS
  • Resident Engineers

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