Managing the movement of millions of products across a large distribution network requires retailers to keep track of inventory, storage capacity, and the speed at which goods move between warehouses and customers. As more consumers shop online and expect faster deliveries, companies are investing in automated systems to improve these operations, according to an analysis done by McKinsey & Company.
Walmart is now committing approximately $6 billion to expand its use of artificial intelligence (AI) and robotics in its distribution network through a new agreement with Symbotic, a US..-based warehouse automation company.
The agreement will introduce additional automation capabilities at 25 of Walmart’s regional distribution centres in the United States and support further development of its global supply chain operations.
Announced on October 29, the multi-year commitment will cover the deployment of automated material handling systems across multiple locations, alongside research and development of new warehouse technologies. Walmart expects the additional capabilities to improve inventory management for e-commerce, increase its storage capacity, and make product movement across its supply chain more efficient.
How Symbotic’s AI Technology Automates Warehouse Operations
Symbotic develops AI-powered robotics and software designed to automate how products are stored, retrieved, and distributed within warehouses. Its technology combines high-density storage systems, autonomous robots, and proprietary software that coordinates the movement of millions of product cases.
The company’s existing solutions include BreakPack, an automated system that allows retailers to distribute individual items rather than requiring full product cases to be moved together. It also offers SymMicro, a micro-fulfilment system designed to support e-commerce operations.
SymMicro uses autonomous mobile robots to retrieve products for order fulfilment, while Symbotic’s software coordinates different warehouse activities and manages product movement. These capabilities are designed to help retailers process orders and manage inventory across their distribution networks.
Walmart has also worked with Symbotic for more than a decade, gradually expanding the relationship from individual automation products to a broader supply chain solution.
What Walmart’s $6 Billion Commitment Covers
Under the expanded commercial agreement, Walmart will purchase Symbotic’s automated material handling systems for ambient areas of its distribution and fulfilment centres in the United States and selected international markets in the Americas.
The initial commitment of approximately $6 billion will cover spending across several years and multiple locations. It also includes $125 million in funding for the research and development of next-generation warehouse racking technology and related picking, process flow, and inventory management capabilities.
Symbotic expects the agreement could increase its future backlog by up to $6.92 billion, a figure that represents the potential value of the new commercial commitments and associated arrangements, rather than an additional payment from Walmart.
The agreement also creates opportunities for Symbotic to support other parts of Walmart’s global supply chain network as the retailer continues expanding its automation capabilities.
Why Walmart Is Expanding Its Automation Investment
Walmart’s latest commitment reflects its continued investment in the physical and digital infrastructure required to support its retail operations, particularly as e-commerce becomes an increasingly important part of how customers shop.
The additional automation systems are expected to strengthen upstream inventory management, helping Walmart organise products before they reach stores or fulfilment locations. Increasing storage capacity and improving how goods move through distribution centres could also support faster order processing and more reliable inventory replenishment.
Rob Montgomery, Executive Vice President of Walmart U.S. Supply Chain Operations, said the expanded partnership would help the retailer improve customer service, increase capacity, simplify work for employees, and lower operating costs.
Symbotic CEO Rick Cohen also highlighted the development of the relationship, explaining that the partnership had grown from a single product into a broader solution supporting Walmart’s supply chain operations.
With the new agreement, Walmart is expanding the role of AI-powered robotics in its distribution network while giving Symbotic a huge opportunity to deploy its warehouse automation technology across multiple markets.
