Back to top

Image: Bigstock

Walmart (WMT) Partners With Symbotic to Optimize Supply Chain

Read MoreHide Full Article

Walmart Inc. (WMT - Free Report) is focused on operating a best-in-class supply chain network to provide a frictionless shopping experience for its customers. The supermarket giant, in partnership with — Symbotic — a robotics and automation company, unveiled plans to install a high-tech automation system across 25 Walmart regional distribution centers. This will digitize and modernize Walmart’s current supply chain facilities to enrich customer’s experiences as well as support evolving consumer demand.

The two parties have been working to optimize Walmart‘s supply chain since 2017. Symbotic’s robust system uses a number of fully autonomous robots along with proprietary software to offer improved efficiency, while improving warehouse capacity. The newly-installed system will lower the time it takes to unload, sort and stock freight at Walmart stores.

Zacks Investment Research
Image Source: Zacks Investment Research

Focus on Enriching Consumers’ Experience

Walmart is leaving no stone unturned to enhance consumers’ experience through better delivery services, solid assortments, easy payment options, attractive pricing and lucrative offers. In June, the omnichannel retailer unveiled a strategic deal with Ibotta, to introduce a new digital offers program on its site, Walmart.com, as well as the Walmart app.  In the same month, the company stated that it will expand and extend its association with a well-known provider of cloud-based platforms in healthcare space, Inovalon (INOV - Free Report) . The move is another step to enrich consumers’ experiences by providing convenient, easy and fast shopping methods.

Walmart has taken robust strides to strengthen its delivery arm, as evident from its investment in DroneUp; pilot with HomeValet, introduction Carrier Pickup by FedEx, launch of Walmart + membership program; drone delivery pilots in the United States with Flytrex and Zipline; and a pilot with Cruise to test grocery delivery through self-driven all-electric cars. The company also unveiled an alliance with DoorDash in third-quarter fiscal 2021 to deliver prescriptions from pharmacies of Sam’s Club along with expanding Scan & Go to all fuel stations at U.S. Sam’s Clubs.

What Else Should You Know?

The Zacks Rank #2 (Buy) company’s e-commerce business and omni-channel penetration have been increasing amid pandemic-led social distancing. On May 13, 2021, Walmart unveiled plans to acquire Zeekit, which is focused on uniting fashion and technology via its virtual fitting room platform. During third-quarter fiscal 2021, Walmart had announced an additional investment in India’s Ninjacart, for technology and supply-chain solutions. The company’s contracts with Goldman Sachs (GS - Free Report) , Shopify and Microsoft (MSFT - Free Report) ; buyouts of ShoeBuy, Moosejaw and Bonobos, among others, underscore its intention to build an impressive digital brand portfolio.

We believe that the aforementioned partnership with Symbotic reinforces Walmart’s commitment toward improving customers’ shopping process.

Shares of Walmart have increased 6.5% in the past year compared with the industry’s growth of 6.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in