Walmart Invests $350 Million in Alabama Fulfillment Automation
Walmart’s investing hundreds of millions of dollars into high-tech automation at its regional distribution centers (RDCs) —which the mass merchant believes will generate millions for the surrounding communities.
The retailer said it will spend $350 million outfitting its regional distribution center in Cullman, Ala., with robotics and artificial intelligence (AI) technologies to nearly double the number of products it can ship to stores, compared to a traditional facility, while also evolving manual jobs into those that offer new skills in robotics and technology. This project is just one part of Walmart’s more extensive renovation plans to update all 42 U.S. regional distribution centers as the chain modernizes its supply chain network.
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“Walmart means far more to Cullman than just innovation and job opportunities,” Jeff Clemons, Cullman County Commission chairman, said. “The company ranks among the top five in Cullman for property tax payments and this expansion will generate millions for our schools. Industry growth is important to a community, and I am excited by this announcement.”
Regional distribution centers are a strategic part of Walmart’s supply chain network, keeping more than 4,700 stores stocked with merchandise including food and home goods. The technology used in regional distribution centers automates what was formerly a physically demanding, manual process. It uses a combination of people, robotics and storage systems to increase the speed at which the retailer sends merchandise to stores, ensuring products get onto shelves faster.
“This automation investment by Walmart confirms that Cullman has been a great partner community,” Cullman Mayor Woody Jacobs said. “No industry here can match the jobs created by Walmart over the past 40 year and this investment guarantees they will continue providing quality jobs for the foreseeable future.”
In May 2022, Walmart announced it was expanding Symbotic’s automation technology to all 42 regional distribution centers, up from its original commitment of 25. Walmart has worked with Symbotic since 2017 when they tested the technology at a Brooksville distribution center in Florida. The technology system sorts, stores, retrieves and packs freight onto pallets. Walmart uses automation technology to “revolutionize” intake, increase accuracy and change how freight is handled at its regional distribution centers. Symbotic uses an algorithm to store cases like “puzzle pieces,” using high-speed mobile bots an operating with a precision that speeds the intake process and increases the accuracy of freight being stored for future orders.
“The improvements we’re making in our Cullman, Alabama, distribution center will be felt by store associates and customers in the surrounding region,” Rachel Nash, regional general manager, southeast operations, Walmart U.S., said. “For our store associates, these investments will make it significantly easier and faster to stock shelves, which results in our customers having the items they want, when they want them.”
As of fiscal 2022, Walmart operates five distribution centers, 144 retail stores and employs 41,029 associates in the state of Alabama. Stores, clubs and the Walmart Foundation gave $41.1 million in cash and in-kind donations to local Alabama organizations in the same fiscal year.
“Walmart’s Cullman distribution center has been a pillar in our community for the last 40 years. Adding robotics, automation and AI-powered software systems to this facility will revolutionize an already impressive operation, fundamentally changing the way we distribute products to stores,” Ken Caviness, general manager, regional distribution center #6006, Walmart U.S., said. “This isn’t just an investment in our facility, but also in our associates, our community and our future.”
