Walmart is in the process of automating or partially automating many of its hundred-plus U.S. warehouses in the coming years. The shift means Walmart can use fewer people to process more goods and make stocking shelves at stores more efficient. To keep their jobs, many of the company’s tens of thousands of warehouse workers need to retrain for new roles. Some will leave. Warehouses will also need to hire people with new skills, such as technicians.
Large companies such as Walmart and Amazon that rely on massive warehousing networks have worked for years to automate more of their supply chains to increase the volume of packages they can process and reduce labor costs, writes The Wall Street Journal (July 29, 2023). Because of Walmart’s scale, its plan to make automation standard in more of its supply chain is likely to affect how smaller competitors invest in their own facilities and what a U.S. warehouse job becomes.
“What this technology does for us is increases capacity, increases the accuracy of our loads, increases the speed of the supply chain and lowers cost,” said the VP of supply chain for Walmart. It is “also completely reshaping the way that our associates work within the distribution center.”
In Walmart’s Central Florida warehouse, as sections of robotic arms and screens are gradually installed across the more than 1–million–square-foot facility, some of its 900 workers say they are skeptical about transitioning to new roles that require different skills. Transferring from unloading trucks manually to what Walmart calls an “automated cell operator” is easier physically but harder mentally.
Skepticism and fear of layoffs among workers are common when a warehouse first transitions to automation. Many workers are excited about a new challenge, but others leave. Employers automate, in part, to cut labor costs, so losing some workers during the process helps avoid the need for layoffs. At warehouses, managers are emphasizing that the new roles require less manual labor and offer more mental stimulation and potential longevity. Some of the jobs offer a pathway to higher-paying automation roles such as systems operators.
Classroom discussion questions:
- What are the advantages of an automated warehouse such as the one in Florida?
- Disadvantages?