Walmart - Next Generation Fulfillment Centers Automation

Project Overview

Walmart embarked on a next-generation fulfillment center program to support its strategic objectives of delivering greater capacity and speed for customers. As a leading omnichannel retailer, the company needed to address growing marketplace demands by adding more items while improving service levels and reducing operational costs. The program aimed to transform traditional fulfillment operations through cutting-edge automation technology.

The core challenges included handling Walmart's huge range of SKUs, reducing warehouse touches, maintaining everyday low prices, and meeting evolving customer preferences for faster delivery. Walmart sought a solution that could significantly increase storage and throughput capacity while streamlining complex fulfillment processes. Rather than purchasing off-the-shelf solutions, Walmart pursued a strategic partnership approach to influence development and create customized automation solutions.

KNAPP was selected as the perfect partner based on their extensive experience in single-item handling and picking, combined with the capabilities of their Evo 2D Shuttle technology. The partnership focused on developing a new dimension in intralogistics automation that would support Walmart's omnichannel retail strategy and deliver outstanding customer experiences.

Technical Solution

KNAPP Evo 2D Shuttle ASRS

The centerpiece of the automation solution is KNAPP's Evo 2D Shuttle Automatic Storage and Retrieval System (ASRS). This high-density storage system features shuttles that transport totes to and from associate workstations in a goods-to-person configuration. The system provides exceptional storage density, enabling Walmart to store up to ten times the SKUs of a traditional building. This density allows for consolidated operations where a single shipping destination can handle customer orders that previously required multiple buildings.

Key Features

The Evo 2D Shuttle ASRS delivers exceptional storage density, enabling 10x SKU capacity compared to traditional buildings. This high-density design was crucial for Walmart's strategy of expanding marketplace assortment while maintaining operational efficiency.

Process streamlining from 12 steps to 5 steps represents a significant operational transformation, reducing complexity and eliminating unnecessary touches in the warehouse. The full software support ensures this streamlined process operates reliably at scale.

The goods-to-person workstation design improves both productivity and associate satisfaction. By delivering items directly to operators and eliminating manual searching, the system makes jobs more technical and engaging while reducing physical strain.

The solution enables single shipping destination capability, allowing Walmart to consolidate operations that previously required multiple buildings. This consolidation improves efficiency and simplifies the supply chain for customer orders.

The strategic partnership approach between Walmart and KNAPP ensured the solution was custom-developed rather than off-the-shelf, resulting in a perfect fit for Walmart's unique operational requirements and growth objectives.

Results & Benefits

The next-generation fulfillment centers have doubled storage capacity and more than doubled cube and throughput capacity compared to Walmart's traditional assets. This capacity expansion supports the company's marketplace growth strategy.

Speed to customers has significantly increased, with the program enabling 95% customer coverage for next-day and two-day shipping. This improved speed proposition benefits millions of items across Walmart's extensive product assortment.

Productivity has improved by over 50% in the automated facilities compared to traditional operations. This efficiency gain supports Walmart's objective of delivering everyday low costs, which in turn enables everyday low prices for customers.

Associate retention has improved as jobs become more technical and simpler within the automated centers. The goods-to-person design and reduced physical demands create more engaging work environments for team members.

The high-density storage solution has enabled operational consolidation, allowing single shipping destinations to handle customer orders that previously required multiple buildings, simplifying logistics and improving efficiency.

Challenges & Solutions

Walmart's primary challenge was meeting growing marketplace capacity demands while maintaining high customer service levels. The Evo 2D Shuttle ASRS addressed this by providing 10x SKU capacity and doubling storage capabilities, enabling the company to expand assortment while maintaining service standards.

Reducing operational costs and warehouse touches was another critical challenge. The solution streamlined processes from 12 steps to 5 steps with full automation and software support, eliminating unnecessary handling and improving efficiency throughout the fulfillment workflow.

Improving speed proposition for customers across millions of items required a fundamental transformation of fulfillment operations. The next-generation centers enabled 95% coverage for next-day and two-day shipping, significantly enhancing Walmart's competitive position in the rapidly evolving retail landscape.

System Integrator

KNAPP served as the strategic system integrator and technology partner for Walmart's next-generation fulfillment center program. The company's expertise in single-item handling and picking, combined with their Evo 2D Shuttle technology, made them the ideal partner for Walmart's ambitious automation goals.

KNAPP's approach was characterized by deep partnership and intensive teamwork with Walmart. Rather than offering standard solutions, KNAPP collaborated closely with Walmart to develop customized automation that perfectly addressed the retailer's specific needs. KNAPP US built comprehensive local capabilities to support the North American deployment, ensuring responsive and effective implementation.

The successful partnership reflects KNAPP's ability to deliver large-scale, customized automation solutions that transform retail fulfillment operations. By working closely with Walmart to understand their strategic objectives and operational challenges, KNAPP delivered a solution that not only met current needs but also positioned Walmart for future growth in the competitive omnichannel retail environment.