Why Automated Fulfilment is Cutting Shipping Costs by 30%

The widespread digitalisation push has seen growth in cost savings and efficiency across global supply chains.

Walmart has reached a US$1t valuation since it began rolling out automation and working on its digital business. It has become the first major retailer to see this market capitalisation, proof that it is seeing the benefits of next-generation technological implementation.

The company has further plans to invest US$330m to modernise its regional distribution centre in Opelousas, Louisiana, aiming to double its shipping capacity with the implementation of automation.

The automation effect

In Walmart's Q3 2025/26 earnings release, the retailer celebrated growth across sales and revenue. Featuring eCommerce growth of 27% and a revenue of US$179.5bn for the third quarter, the company also celebrated consistent cost savings. 

Part of its strategy for offering low prices and greater convenience includes leveraging physical and digital assets. Through repeated investments in supply chain automation, the retailer is seeing improved efficiency across its operations. 

More than 60% of Walmart US stores accept freight that has come from automated distribution centres and more than 50% of its eCommerce fulfilment centre is automated. As a result, the company is seeing greater unit productivity across its distribution networks. 

“That translates into lower shipping costs,” says Walmart EVP and CFO John David Rainey.

“Our shipping costs have been down consistently for many quarters in the 30% range. This was another quarter where we saw double-digit improvements, and that really helps our e-commerce economics, but also helps the overall SG&A of the company.”

Automated technology is being deployed across perishable and non-perishable distribution networks, but its fulfilment centres are undergoing the biggest productivity transformation, with many new automated fulfilment centres entering Walmart's supply chain.

“They’re about twice as productive as a legacy fulfillment center,” explains David Guggina, EVP and Walmart US Chief eCommerce Officer.

“And they’re becoming more and more capable over time as we continue to bring more and more robotics into the different processes.”

The launch of Walmart's 'next-generation fulfilment centres began in 2022, with plans to grow its automated centres further. Automation across its supply chain has been a key topic in recent years, with the introduction of autonomous forklifts, inventory-tracking sensors and high-density storage systems. 

All supply chain, procurement and logistics leaders should attend:

• Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Procurement & Sustainability LIVE, these events bring together COOs, CSOs, and senior decision-makers at a moment when supply chains and commercial performance are increasingly interconnected.

Increasing supply chain efficiency

Walmart has certainly seen the benefit of this automation transformation, becoming the first large retailer to reach a market capitalisation of US$1tn, with a share price exceeding US$126. Its growing e-commerce operations and ability to order same-day delivery to 95% of US households has seen it meet consumer demands.

This is aided by the ongoing automation of warehouse tasks, with a stable global workforce of approximately 2.1 million. In Q3, there was an increase of almost 50% in store-fulfilled delivery. Approximately 35% of store-fulfilled orders were delivered in less than three hours, aided by the speed which automation offers. 

Through automating repetitive tasks, Walmart is ensuring its workforce can focus on other areas, without having to spend time and resources training new staff to meet consumer demand. By investing in automation across its fulfillment and distribution centres, the organisation is operating less like a traditional retailer and is instead moving towards become a multi-faceted platform.

Its move to digitisation is merging its physical stores, digital commerce, advertising and logistics, centring itself within omnichannel shopping. 

Ongoing digitisation 

As part of its push to modernise and upgrade all 42 of its regional distribution centres, Walmart is preparing to invest more than US$330m in its Opelousas distribution centre. By introducing robotics and automation, Walmart plans to double the facility's shipping capacity, with plans to begin the project this year. 

The automation process will be in place to support its staff, rather than replace them, with the aim of upskilling. More than 1,900 of its 37,400 employees across Louisiana work in distribution centres.

A Walmart spokesperson said: “This will play a strategic role in supporting our goal of modernising our vast supply chain network by increasing the speed, efficiency and safety at which products are distributed across our regional distribution centres." 

The company is investing in digitalisation across its supply chain, even implementing it into the customer experience with real-time visibility, agentic AI and Scan & Go technology. 

With revenue growth, cost savings and increased efficiency, Walmart is demonstrating how companies can implement automation and digitalisation for operational gain.