Walmart unveils its high-tech consolidation centre to optimise supply chain process

By Dale Benton
The world’s largest retailer, and a world leader in sustainability, has announced a new 340,000-square-foot consolidation centre that will optimise th...

The world’s largest retailer, and a world leader in sustainability, has announced a new 340,000-square-foot consolidation centre that will optimise the company’s supply chain operations.

Walmart announces this week that it’s newly built high-tech consolidation centre in Colton, California, will utilise automated technology to enable increased volume and faster delivery times.

Opening in mid-2019, the centre will employ 150 full-time employees before expanding to 600 by 2021. “With the combined might of people and world-class logistic technology, this facility will be the most efficient consolidation centre in Walmart’s supply chain,” says Walmart.

Walmart’s consolidation centres are key to the company’s supply chain, receiving general merchandise items such as toys and kitchen appliances from suppliers which are then moved on to regional distribution centres. “This allows Walmart’s 42 regional centres to focus on the next step-distributing products to stores,” Walmart continues.
 

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Consolidation centres handle multiple orders as a means of improving the efficiency of Walmart’s supply chain across its entire US footprint.

The centres will utilise innovative technology systems that will enable suppliers to fill single, larger orders rather than multiple smaller ones. Automated software will scan and count the product upon arrival and store data and information that Walmart can access to make simpler, smarter decisions.

Consolidating multiple smaller orders into one larger order allows for less trucks on the road and a major reduction in shipping costs, “Colton solves these problems and creates savings we can pass on to the customer in the form of lower prices,” says Walmart.

Ultimately, Walmart’s new consolidation centre serves one key purpose – to improve the supply chain and its distribution centre operations.

““We’re going to make the regional distribution centres more efficient,” said Geno Bell, senior director of the consolidation centre network,” said Geno Bell, senior director of the consolidation centre network. ““With this new technology, we can be surgical and responsive in getting merchandise into stores,”

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