Walmart Revises its Supply-Chain Strategy

Walmart is stepping up investments in supply chain and technology as the retailer reshapes its distribution network. The Wall Street Journal reports that the company expects to expand operating profits faster than sales growth over the next three to five years.

The bullish outlook is driven in part by investments that Walmart believes will reduce costs and result in better delivery speed and accuracy. The retailer more than doubled its capital expenditures on supply chain and technology compared with 2017.

Much of the spending is targeted at improving fulfillment capabilities at its stores. Walmart has already seen faster picking speeds at online orders, and it is trying to automate more of those operations, both in stores and at dedicated fulfillment centers. 

The investments in automation come as Walmart is trimming its labor force at its distribution centers.