Walmart boosting supply chain logistics in China

Walmart boosting supply chain logistics in China
South China Fresh Distribution Centre (courtesy of Walmart)

Walmart is investing $1.2 billion in its supply chain logistics in China in a move that will see it build or upgrade more than ten logistics distribution centres over the next few decades.

The investments follows the retail giant building the first customised perishable food distribution centre in South China.

The $101.87 million South China Fresh Food Distribution Centre has been in operation since March 2019 and currently serves more than 100 Walmart stores in Guangdong and Guangxi.

At 33,700 square meters, it is the largest, multi-temperature perishable distribution centre in the domestic retail industry and can store and process more than 4,000 kinds of temperature-regulated, refrigerated or frozen goods simultaneously.

This latest investment is aimed at enabling Walmart’s omni-channel development as well as continuing to provide Chinese customers with fresh products.

“Walmart continues to increase investment in supply-chain logistics in order to enable our omni-channel development, continue to provide our Chinese customers with great fresh products, and improve our service,” said Ryan McDaniel, Senior Vice President of Walmart China Supply Chain.

In 2018, Walmart China’s dry warehouses and fresh food distribution centres dispatched more than 300,000 vehicles to its stores, resulting in an annual distribution mileage of more than 80 million kilometres and daily delivery of more than 1 million boxes of goods.