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Walmart announced that it’s expanding its deal with Symbotic and plans to put Symbotic’s system into all 42 of its regional distribution centers over the next, at least, eight years.
Symbotic’s partnership with Walmart was announced in July 2021, when Walmart planned to outfit 25 of its distribution centers with Symbotic’s system. The companies had been working together since 2017, when Symbotic’s system began being tested in Walmart’s Brooksville, Florida distribution center.
The system includes a fleet of fully autonomous robots and artificial intelligence (AI) powered software that aims to improve efficiency, accuracy and agility while also reducing costs.
“The need for accuracy and speed in the supply chain has never been more visible, and we’re confident that now is the time to move even faster by scaling Symbotic’s technology to our entire regional distribution center network,” David Guggina, senior vice president of innovation and automation, Walmart U.S., said. “Using high-speed robotics and intelligent software to organize and optimize inventory, the Symbotic System helps us get products to our customers quickly and seamlessly by revolutionizing how we receive and distribute products to stores.”
Symbotic’s software is able to orchestrate an entire fleet of robots to receive, store and retrieve a virtually limitless number of SKUs, according to the company. Each robot is equipped with the company’s proprietary end-of-arm tooling and vision systems, which allow them to output cases, totes and packages at industry-leading speeds.
“The expanded partnership with Walmart substantiates how our technology is truly reinventing the traditional warehouse and distribution of consumer goods across the supply chain,” Rick Cohen, the chairman. president and chief product officer of Symbotic, said. “As a technology platform with deep roots in warehousing and distribution – our system addresses some of the biggest challenges of today’s complex supply chain, such as inventory agility, transportation cost and labor availability. Modernizing the warehouse allows consumers to get what they need faster and creates benefits for everyone including workers, customers and their local communities.”
Symbotic is currently in the process of going public via a merger with SVF Investment Corp. 3, a special purpose acquisition company (SPAC) sponsored by an affiliate of SoftBank Investment Advisers. The transaction is expected to deliver up to $725 million of primary gross proceeds for Symbotic.