Walmart faces operational hurdles in warehouse automation rollout

Walmart is facing significant operational and physical hurdles during its large-scale effort to automate its supply chain. The company is currently converting approximately 200 supply chain facilities that serve 5,200 US stores into automated hubs, a process Rob Montgomery, head of US supply chain operations, described as being at a “peak of complexity.”

Technical difficulties include robots struggling to precisely pick individual items from boxes and small shuttle robots frequently veering off course. The automation has also struggled with bulky or heavy items, such as large televisions and bags of pet food. Additional unforeseen issues include dust accumulation, unreliable mobile transport units, and boxes that are occasionally 1.5 inches too short, requiring manual sealing.

Despite these challenges and rising electricity costs in warehouses, Walmart stated that no layoffs are planned for its 140,000 warehouse workers; instead, the company intends to manage staffing through natural attrition.