How Walmart Reduced a Manual Process from 12 Steps to Five
Through a partnership with KNAPP, Walmart doubled its throughput and reaches 95% of customers with next-day and two-day shipping.
To address the growing demands of e-commerce and enhance supply chain efficiency, Walmart embarked on a transformative mission. The goal was to revolutionize their traditional distribution centers by minimizing manual processes involved in order fulfillment.
This initiative aimed to offer a vast range of SKUs to customers, improve service levels, increase capacity, speed up delivery times and boost productivity. Rather than opting for an off-the-shelf solution, Walmart chose KNAPP as a strategic partner to develop a tailored solution.
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“KNAPP helps us to deliver everyday low costs so that we can deliver everyday low prices for our customers.”
David GugginaPresident & CEO
Walmart U.S.
Want to learn more about the Walmart solution?
The Solution:
Together, KNAPP and Walmart successfully established four next-generation fulfillment centers, known as Next Gen FCs, with a fifth on the way. These state-of-the-art centers have streamlined a 12-step process into just five, fully supported by software.
The solution has more than doubled Walmart’s throughput capacity at each node, allowing them to offer the assortment customers want. This technology enables storage of up to 10 times the SKUs of a traditional building, consolidating shipping into a single destination based on customer orders.
It delivers millions of items, reaching 95% of customers with next-day and two-day shipping. In the Next Gen FCs, Walmart associates and our team work hand in hand. The combination of automated processes and a strong partnership has made jobs more technical yet simpler for team members, while productivity has increased by over 50%.
“The Next Gen FCs provide a seamless way of working for our associates. That takes away a ton of the stress on the physical body.”
Karisa SpragueSVP, Fulfillment and Reverse Operations
Walmart U.S.
Reducing a Manual Process from 12 Steps to Five
#1 Unloading
At Walmart, unloaded cartons are either temporarily stored in the Evo Shuttle 2D automatic storage system or are conveyed directly to the decanting area. On the way, the cartons run through a scan tunnel. Here is where the “auto receive” takes place, automatically accepting delivery of the cartons. The process includes registering the weight, dimensions and labels of every carton.
#2 Decanting and Putaway
Employees working at the decanting stations empty the cartons arriving there and transfer the items to a storage container. Several container configurations are available. These newly filled storage containers move along a conveyor belt towards the Evo Shuttle 2D automatic storage system, where they enter storage. One of the system’s shuttles takes up the container and transports it to one of the million storage locations within the system. The shuttle storage system was designed to be especially compact, utilizing the entire height of the hall to ensure optimal storage density.
#3 Picking
As soon as a customer order comes in, the source container is automatically retrieved from the Evo Shuttle 2D, transported to a lift and then on to one of the goods-to-person work stations of the Pick-it-Easy Evo series. Employees pick the order at one of the ergonomic, height-adjustable work stations. Here, 4 orders can be processed at the same time. If the order will not be shipped in a carton, it is initially picked into a container.
#4 Packing
Orders that are picked to containers at the goods-to-person work stations are transported to the pack stations. Picked in batches, the orders are placed into the assigned shipping package with filling material to secure them during transport. The completed order is closed with adhesive tape, scanned and weighed, either automatically or semi-automatically, and provided with an address label. This process eliminates repetitive tasks and improves safety while simultaneously increasing speed, efficiency and precision.
#5 Shipping
Once packing is completed, orders are automatically transported to the assigned zone and loaded onto vehicles that handle the last mile for the deliveries, either from Walmart transport services or a 3PL.
KiSoft Software is the Key to Connection
Meeting all the different requirements that Walmart had required going with a customized software solution. Our KiSoft suite ensures that all the processes in every Next Gen FC function smoothly and efficiently, working hand in hand with the company’s WMS. .
Walmart also uses KiSoft Analytics from our software portfolio. Relevant data can be examined for the individual Next Gen FCs in real time. With such a comprehensive data set, Walmart has clear oversight of all the logistical processes and can derive trends as well as make forecasts. By networking and utilizing of all the relevant data from across the individual Next Gen FCs, Walmart can make solid comparisons, learn and thus acquire greater efficiency.
Right-Sized Packaging
Prior to picking, the cardboard shipping cartons are automatically erected and tailored precisely to the size of the respective order, providing right size packaging. By reducing the air in the shipping cartons, the space in the transport vehicle is used more efficiently, reducing transported air at Walmart by about 60%. These tailored pack sizes furthermore lower shipping costs, reduce packaging waste and are 100% recyclable.
Benefits at a Glance
Double the Storage Capacity
A manual process involving 12 steps was reduced to five steps. This saves time, effort and expense and doubles the number of orders processed per day.
50% Increase in Productivity
The seamless interplay of all the components in the state-of-the-art logistics centers doubled the overall throughput and reduced the order lead time to 30 minutes.
Greater employee retention
Employees were averaging up to 9 miles a day (14 km), a figure drastically reduced by the solution’s simplified and smoothly running processes. Additionally, the ergonomic goods-to-person workstations have greatly improved employee satisfaction.
Larger Product Range and More Availability
The state-of-the-art logistics centers provide storage for a larger product range, allowing Walmart to offer much more value to its customers, especially during the Christmas season. Optimal availability ensures that the desired items are available when needed.
Faster Deliveries for 95% of the Market
The four existing Next Generation Fulfillment Centers, which hold millions of items, already provide 75% of the US market with next-day or two-day delivery. Together with its traditional fulfillment centers, Walmart covers 95% of the market.
Lower Costs
The integrated automation solutions made it possible to utilize resources efficiently and thus reduce operating costs. By adapting the shipping cartons perfectly to the respective order, optimal shipping costs were achieved.
Meet Your Value Chain Tech Partners
Michael Reighard
SENIOR SALES MANAGER, RETAIL
As a Senior Sales Manager for KNAPP, Michael is a specialist in delivering sophisticated solutions for the retail sector, encompassing general merchandise, cosmetics, and apparel. He leverages a deep understanding of the supply chain industry to provide clients with operational optimization, strategic network design, and flawless solution implementation.
Guido Saccaggi
SALES CONSULTANT RETAIL
Guido specializes in guiding organizations toward high impact warehouse automation solutions. Drawing on a strong engineering foundation in the logistics industry, he helps general retail, beauty and cosmetics organizations identify growth opportunities by bringing clarity to complex operational challenges. Guido partners closely with clients to design automation strategies that align technology with long term business goals, ensuring each solution enhances efficiency, supports brand needs and enables sustainable scaling.