Walmart is undertaking a significant reengineering of its global supply chain, emphasising automation and real-time artificial intelligence (AI) to create faster, smarter operations on a global scale. Building on technologies proven in the United States, the retail giant is now rolling out innovations such as self-healing inventory and agentic AI across markets including Costa Rica, Mexico, and Canada. These systems enable the company to predict demand more accurately, reroute inventory dynamically, reduce waste, and simplify workflows, all while allowing local teams to adapt tools to their specific needs within a unified technological framework.
At a perishable goods distribution centre in Coyol, Costa Rica, the company’s predictive warehouse and transportation management systems meticulously map delivery routes and align orders to store demand before workers even arrive. In Mexico City, the self-healing inventory system, which automatically reroutes supplies in response to overstocks, has already saved Walmart more than $55 million. Vinod Bidarkoppa, Walmart International’s executive vice president and chief technology officer, emphasised that moving faster in today’s retail environment requires “moving smarter,” leveraging real-time data to free employees and enhance customer service.
These advancements form part of a broader strategic thrust toward integrating AI and automation into supply chain operations. Recently, Walmart agreed to sell its robotics unit to Symbotic, a US-based automation firm, for $200 million in cash. Alongside this transaction, the two companies formed a partnership to develop AI-enabled robotics solutions for Walmart’s pickup and delivery centres, with the deal expected to complete in the second quarter of fiscal 2025. This move underscores a growing industry trend where retailers are increasingly relying on sophisticated automation technologies to improve efficiency and customer experience.
Walmart is also reportedly exploring a substantial $200 million investment in autonomous forklifts, supplied by Fox Robotics, to further automate warehouse operations. Early pilots involving 19 ‘FoxBots’ across four facilities have shown promise, and the rollout of this technology will continue contingent on performance outcomes. The company’s approach indicates a clear intent to leverage cutting-edge robotics to compete effectively with rivals like Amazon, whose investments in AI and automation are reshaping retail logistics.
Further innovations include Walmart Commerce Technologies’ launch of an AI-powered logistics solution named Route Optimization, which has now been made available as a Software as a Service (SaaS) platform for other businesses. This technology optimises driving routes, trailer packing, and reduces mileage, cutting out 30 million unnecessary miles and avoiding 94 million pounds of CO₂ emissions to date. Walmart’s deployment of this solution earned it the prestigious Franz Edelman Award in 2023, reflecting the tangible impact of AI on its logistical efficiency.
Walmart’s automation efforts also reflect a broader strategic pivot towards labour-saving technologies amid robust business growth. Despite increasing revenues by over $150 billion in the past five years, the company has reduced its global workforce by nearly 70,000, maintaining relatively flat employment figures through automation and e-commerce growth. The company’s automated warehouses in Texas, which substantially reduce manual tasks, exemplify how technology investments are driving operational cost savings and record financial performance.
Moreover, Walmart has used AI not only to optimise physical supply chains but also to enhance supplier negotiations. Through partnerships such as one with Pactum AI, the company has automated contract negotiations via AI-powered chatbots, securing agreements with 68% of approached suppliers, lowering costs by an average of 1.5%, and extending payment terms. This digital negotiation innovation is enhancing Walmart’s market dominance by tightening control over costs at multiple supply chain nodes.
Taken together, Walmart’s global expansion of AI and automation within its supply chain underlines a comprehensive strategy to create an intelligent, predictive, and highly efficient network. By integrating advanced robotics, real-time AI systems, and strategic supplier engagement tools, Walmart aims to secure a competitive edge in retail logistics, reduce waste, and streamline operations across diverse markets. This transformation is indicative of a wider retail shift where controlling and fine-tuning every aspect of the supply chain— from sourcing to shelf—has become essential to meet evolving consumer demands and inflationary pressures.
Source: Noah Wire Services
