Walmart commits $6 billion to supply chain automation
Walmart Inc. is undertaking a multi-billion-dollar expansion of its effort to improve supply chain performance with a longstanding partner.
Walmart is making an initial commitment of about $6 billion to team with AI-enabled robotics technology provider Symbotic Inc. in bringing further automation capabilities to 25 U.S. regional distribution centers while supporting additional automation opportunities across its global supply chain network.
Building on a long-standing partnership between the two companies (see more below), this new agreement will see Symbotic provide automation capabilities across multiple Walmart supply chain locations over several years.
“At Walmart, we’re focused on bringing more items to more customers and members, faster than ever,” said Rob Montgomery, executive VP for Walmart U.S. supply chain operations. “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. Our work with Symbotic over the years, including this expanded agreement, helps us improve service, grow capacity, simplify work for our associates and lower costs.”
Walmart and Symbotic have been engaged in long-term efforts to equip the retailer’s entire regional distribution center network with robotics and software automation. In September 2024, Walmart said it would install high-tech automaton from Symbotic in two of its regional distribution centers (RDCs) – one in Buckeye, Ariz., and another in Searcy, Ark.
Both projects will be completed in phases over several years and are part of a broader RDC initiative the discount giant launched in 2021 and extended to include all 42 RDCs in 2022.
[READ MORE: Walmart expands regional distribution automation strategy]
In 2025, Walmart entered a $500 million dollar-plus deal with Symbiotic to take over its advanced systems and robotics division. Symbotic is engaging in a development program funded by Walmart to enhance online pickup and delivery fulfillment systems, as well as to design new systems to help develop an integrated and automated supply chain.
As part of the deal, Walmart has committed to purchasing and deploying systems for 400 accelerated pickup and delivery centers (APDs) at stores over a multi-year period, with Walmart’s option to add additional APDs in the coming years.
According to Walmart, Symbiotic automation technology enables it to double the number of cases processed per hour compared to a traditional RDC. By the end of 2025, roughly 65% of Walmart stores were receiving merchandise from high-tech distribution centers.
With automation provided by the Symbotic solution, an algorithm determines how to store cases like puzzle pieces using high-speed mobile robots that reduce the time of the intake process and increase the accuracy of freight being stored for future orders.
This solution uses a combination of AI-powered software systems, robotics and automation to sort, store, retrieve and pack merchandise onto pallets which are then shipped to stores. The solution is designed to get products onto shelves quicker.
According to Walmart, the system transforms existing RDCs into high-density, automated facilities that provide faster product intake, increased inventory accuracy and a 2X increase in building capacity. The RDC transformation model is designed to save store associates time by creating store- and aisle-ready pallets, which take the guesswork out of unloading trucks.
Through its expanded work with Symbotic, Walmart plans to bring additional automation capabilities to its regional distribution center network, supporting e-commerce upstream inventory management, increasing storage capacity and improving how products move through the supply chain. Walmart hopes these capabilities will help it offer customers a broader assortment, improve speed and provide more reliable replenishment across its network.
“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,” said Rick Cohen, chairman and CEO of Symbotic. “This expanded agreement reflects the strength of that collaboration – a partnership defined by trust and shared ambition.”
