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Walmart will deploy Symbotic automation technology across 25 of the retailer's U.S. regional distribution centers as part of an expanded commercial agreement, according to a news release Thursday .
Symbotic's technology aims to help Walmart better manage upstream inventory for e-commerce, boost storage capacity and improve speed and replenishment. The agreement features an initial commitment of $6 billion — covering work over several years across multiple locations — and will also support "additional opportunities across Walmart's global supply chain network," per the release.
"At Walmart, we're focused on bringing more items to more customers and members, faster than ever," Rob Montgomery, EVP for Walmart's U.S. supply chain operations, said in the release. "Our investments in the physical and digital supply chain help us serve them however they choose to shop, whether in stores, at the curbside or at home."
As part of the arrangement, Walmart has committed to purchase automated material handling systems from Symbotic "for ambient areas of distribution or fulfillment centers in the United States and select international markets in the Americas," per a securities filing . Additionally, Walmart has committed $125 million for the research and development of racking technology and related picking, process flow and inventory management capabilities.
Symbotic's offerings include BreakPack , which enables less-than-full-case distribution, and the SymMicro system, which uses autonomous mobile robots to retrieve goods for order fulfillment. In August, Symbotic chairman and CEO Rick Cohen said Symbotic recently began installing a SymMicro system in the back of a Walmart store.
"Our partnership with Walmart started with a single product over a decade ago, and now we offer a full end-to-end solution to help power Walmart's growth across its supply chain for years to come," Cohen said in the release.
Walmart's expanded arrangement with Symbotic is one way the retailer is investing in its supply chain to bolster service to customers. In February, President and CEO John Furner said the retailer's capital investments tied to its supply chain would likely peak over the next two years.
Regional distribution centers are a big target of Walmart's supply chain spending. The company is investing more than $330 million into a regional distribution center in Louisiana and equipping it with robotics and automation to boost shipping capacity.
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