In a major upgrade to its supply chain, Walmart is opening a high-tech consolidation center in Lebanon, Pennsylvania this month that will service all 42 of the retail giant’s regional distribution centers across the US.
The 400,000-square-foot center — Walmart’s second consolidation facility after an initial nationwide opening in Colton, Calif., in 2019 — will also serve fulfillment centers in the near future. Located at 1625 Heilmandale Rd. almost 1,000 workers will be employed in Lebanon, of which 500 are pre-hired.
Walmart’s consolidation centers use automated technology that allows three times the volume to flow through the supply chain. General merchandise is received from suppliers in smaller loads known as less than truckload (LTL) and consolidated into larger loads or full loads (TL). The product is then sent to regional DCs where it is sorted before going to stores.
Suppliers will now deliver goods to one consolidation location instead of sending separate orders to each of the Bentonville, Ark.-based retail giant’s 42 regional distribution centers, simplifying order fulfillment, shortening delivery times and increasing speed to customers.
“We have continuously invested in our people, facilities and technology to deliver the right product, in the right place, at the right time,” Mike Gray, Walmart’s senior vice president of supply chain operations, said in a statement. . “As part of these investments, the Lebanon facility will provide even more opportunities for small and medium-sized suppliers who do not ship nationwide, the ability to provide products to all 4,700 Walmart stores.”
The new consolidation center coincides with Walmart’s previously announced plans to install automated technology in all 42 regional DCs.
“Walmart is creating the future of the supply chain—a modern system that combines the latest software and automation technologies with the highly skilled and specialized workforce of Walmart associates—to disrupt the industry as we know it,” said David Guggina, senior vice president of innovation and automation. , Walmart U.S. “It is an exciting time to join our second high-tech consolidation center in Lebanon. In this facility, we implement technologies that Walmart will continue to introduce into our supply chain network.”
