Walmart Leveraging Automated Tech in New Consolidation Center

Liz Dominguez
Managing Editor
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New walmart consolidation center

Walmart is bolstering its fulfillment efforts, investing in a new high-tech consolidation center in Lebanon, Pennsylvania that will leverage automation to improve product flow. 

The new 400,000 square-foot facility will service all 42 regional distribution centers across the U.S., and will introduce nearly 1,000 new jobs to the area. Roles will range from Freight Handler to Operational Manager. 

Full-time positions qualify for Walmart’s total rewards and benefits plans, including medical, vision and dental insurance, 401(k) matching, paid time off, stock purchase plan, and access to a 100% paid college tuition and books through Walmart’s Live Better U.

Walmart also plans to expand service to fulfillment centers in the near future.

[Read more: Walmart, Kroger Choose Locations for New Fulfillment Facilities in 2022]

Matching an existing facility that Walmart opened in California in 2019, the consolidation center will help the company quickly move products to store shelves. 

These centers receive smaller freight loads from suppliers and consolidates them into larger freight loads before shipping them to regional distribution centers where products are sorted for store distribution. 

Rather than shipping individual orders for each of the 42 regional distribution centers, suppliers will now be able to deliver merchandising to a singular location. By leaning on tech, Walmart will be able to simplify purchase order fulfillment, reduce lead times, and increase 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,” said Mike Gray, senior vice president, supply chain operations at Walmart. 

“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 product to all 4,700 Walmart stores,” Gray added. 

The Next Phase in Walmart’s Digital Transformation

Walmart is looking to bolster its supply chain through tech investments that will not only improve efficiency, but streamlines the entire supply chain ecosystem. The company announced plans to build four new fulfillment centers over the next three years, and the facilities will be the "first of their kind" for Walmart, tapping people, robotics, and machine learning. 

Walmart also has plans to renovate all 42 of its regional distribution centers with automated tech.

“Walmart is creating the future of supply chain—a modern system that pairs the latest in software and automation technologies, with a highly trained 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’s an exciting time to join our second high-tech consolidation center in Lebanon. At this facility, we’re implementing the technologies Walmart will continue to roll out throughout our supply chain network,” Guggina added.

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