Walmart to open high-tech consolidation centre in Pennsylvania

The Lebanon consolidation centre will service all 42 regional distribution centres across the US, with plans to service fulfilment centres in the near future. This building will be the second of its kind in Walmart’s supply chain. The first, located in Colton, California, opened in 2019. Consolidation centres have a specialised role in moving products quickly on their journey to store shelves, and ultimately, the customer, the company said in a press release.

Each has the ability to receive general merchandise items from suppliers in smaller freight loads, known in the industry as less than a truckload (LTL) and consolidate them into larger freight loads, known as full truckloads (TL). Then the product is shipped to regional distribution centres where it is sorted for distribution to stores. Suppliers will now be able to deliver merchandise to one singular location for consolidation versus shipping separate orders for each of the 42 regional distribution centres. This automation will unlock new benefits for suppliers through simplification of purchase order fulfilment, reduction of lead times and increased speed to customers.

“We’ve made continued investments in our people, facilities and technology to ensure we have the right product, in the right place, at the right time. As part of these investments, the Lebanon facility will provide even more opportunities for small to medium sized suppliers who do not ship nationwide, the ability to provide products to all 4,700 Walmart stores,” Mike Gray, senior vice president, supply chain operations at Walmart, said.

“Walmart is creating the future of the supply chain—a modern system that pairs the latest in software and automation technologies, with a highly trained and specialised workforce of Walmart associates—to disrupt the industry as we know it. It’s an exciting time to join our second high tech consolidation centre in Lebanon. At this facility, we’re implementing the technologies Walmart will continue to roll out throughout our supply chain network,” David Guggina, senior vice president of innovation & automation, Walmart, said.

Fibre2Fashion News Desk (GK)