Walmart plans to build four high-tech fulfillment centers positioning the big box retailer to compete with e-commerce giant Amazon and that can only be accomplished by hiring more CDL professionals and last-mile delivery drivers.
A 1.1 million-square-foot facility is expected to come online over the summer in Joliet, Illinois, adding upwards of 1,000 new jobs to the area. The high-tech warehouse and distribution center is located 45 miles southeast of Chicago and will serve as a hub for Walmart+ members in Indiana, Wisconsin, and Illinois. The string of massive facilities is designed to improve customer service in terms of next-day or two-day doorstep deliveries.
“Our new next-generation fulfillment center is a first-of-its-kind for Walmart that will transform the way we ship online orders to customers. Through our automated storage system and patent-pending five-step process, we’ll not only provide increased comfort for associates but also double the storage capacity and double the number of customer orders we’re able to fulfill in a day,” Walmart senior vice president of innovation and automation David Guggina reportedly said.
It appears Walmart is not shying away from direct competition with Amazon and Kroger in some markets. A Walmart+ membership entitles users to unlimited free deliveries from 4,700 area stores, with 2,700 possessing same-day capabilities. The modest monthly fee rivals that of Amazon Prime, which offers customers free shipping, as well as a television show and movie subscription.
The country’s largest retail outlet chain reportedly plans to hire upwards of 4,000 people to staff the fulfillment centers. Warehouse workers currently earn $16 to $28 per hour and the company is expected to offer new-hires wages nearer to $28. More than 30 large facilities already manage online orders, not including 75 percent of its big box stores. It’s essential to remember that every product that finds its way to a shelf or doorstep more than likely spent time on a truck.
Known for paying commercial motor vehicle fleet drivers among the industry’s highest wages, Walmart plans to extend perks such as free college tuition for employees who earn degrees related to business, technology, or supply chain management. Walmart also offers to help cover the cost of securing a CDL and move into company driving positions that start at nearly $90,000 annually.
“Most impressively, these four next-generation FCs alone could provide 75 percent of the U.S. population with next- or two-day shipping on millions of items, including Marketplace items shipped by Walmart Fulfillment Services. Combined with our traditional FCs, we can reach 95 percent of the U.S. population with next- or two-day shipping, and by making use of the expansive reach of our stores, we can offer same-day delivery to 80 percent of the U.S. population,” Guggina reportedly said.
Sources: walmart.com, businesswire.com, cnbc.com
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