Walmart Earmarking $6 Billion for Automated Supply Chain

Walmart Inc. is investing billions of dollars into strengthening its supply chain performance efforts with a long-time partner.

Walmart is committing roughly $6 billion initially to partner with Symbotic Inc., the AI-enabled robotics technology provider, so as to bolster its automated supply chain by bringing more automation features to 25 U.S. regional distribution centers while at the same time facilitating more automation possibilities throughout its global supply chain network.

Building on a long collaboration between both companies, this new agreement is expected to see Symbotic deliver a range of automation capabilities across various Walmart supply chain locations over a period of many years.

Rob Montgomery, executive VP for Walmart U.S. supply chain operations, says, “At Walmart, we’re focused on bringing more items to more customers and members faster than ever. 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.”

It is well to be noted that Walmart and Symbotic have worked for years to implement robotics and software automation across the retailer’s full regional distribution center network. Walmart had announced in September 2024 plans to set up a high-tech automaton from Symbotic in two of its regional distribution centers – RDCs – one in Buckeye, Arizona, and the other one in Searcy, Arkansas.

Both projects are going to be completed in phases over a period of several years and will be a part of a much-wider RDC initiative the discount giant launched in 2021 and expanded to include all of the 42 RDCs in 2022.

Walmart in 2025 signed a $500 million-plus deal to acquire the advanced systems and robotics arm of Symbiotic. Walmart is investing in a development program with Symbotic to improve online pickup and delivery fulfillment systems and to create new systems that will help build a unified and automated supply chain.

Under terms of the deal, Walmart will buy and install systems for 400 accelerated pickup and delivery centers – APDs across stores throughout a multi-year period, with the option for Walmart to add more APDs in the years to come.

Walmart said its symbiotic automation technology allows it to double the total amount of cases processed every hour in comparison to a traditional RDC. By the end of 2025, about 65% of Walmart stores were being supplied with merchandise coming from high-tech distribution centers.

The Symbotic solution’s automation makes use of an algorithm, storing cases like puzzle pieces with rapid, mobile robots, decreasing the intake time and increasing the precision of goods preserved for future orders.

The solution utilizes a mix of AI-driven software systems and robotics as well as automation to organize, stock, pick up, and bundle merchandise onto pallets for shipping to stores. The solution is designed to help get products to shelves faster.

Walmart said the system converts current RDCs into high-density, automated facilities that allow for faster product intake, improved inventory precision, and a twofold increase when it comes to building capacity. The RDC transformation model is intended to conserve store associates time by producing store- and aisle-ready pallets, cutting out the guesswork of unloading trucks.

Walmart will expand its work with Symbotic to add further automation capabilities to its regional distribution center network that enable e-commerce upstream inventory management, boost storage capacity, and enhance how products traverse the supply chain. These capabilities will assist them to offer customers a wider variety, increase speed, and offer more consistent replenishment services across their network, remarked Walmart.

Rick Cohen, chairman and CEO of Symbotic said, “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. This expanded agreement reflects the strength of that collaboration – a partnership defined by trust and shared ambition.”