Walmart Canada adds DCs, supply chain tech in C$3.5B push

A view from inside a Walmart distribution center. Walmart Canada is adding two distribution centers as part of a larger investment.

Walmart Canada plans to build two new distribution centers and bring more technology into its supply chain as part of a C$3.5 billion (US$2.6 billion) investment to grow its e-commerce and in-store operations. 

Walmart said it will spend C$1.1 billion to construct the new distribution centers near Toronto and Vancouver and renovate an existing one in Ontario. 

“The retail business is as dynamic as ever and this investment ensures we’re developing a supply chain that is the envy of the world,” John Bayliss, Walmart Canada’s senior vice president of logistics and supply chain, said in a statement. “The better the supply chain, the quicker our customers can get the products they want.”

Walmart Canada revealed its supply chain upgrades when it announced its broader C$3.5 billion investment plan. The investment over five years targets Walmart’s brick-and-mortar stores and e-commerce operations

The single-biggest supply chain investment is the forthcoming 550,000-square-foot distribution center in Vaughn, Ontario. Located in the Greater Toronto Area, the facility will be Walmart’s largest distribution center in Canada when it opens in 2024.

Walmart has already started building a 300,000-square-foot distribution center in Surrey, British Columbia, as part of the investment. 

Supply chain technology getting boost

Walmart is accelerating the adoption of technology in its Canadian supply chain operations as a part of the investment. 

The company plans to expand its blockchain payment platform with DLT Labs-Walmart. DLT unveiled its Asset Track platform at the Blockchain in Transport Alliance’s BiTA Symposium Chicago in November and launched it in February. 

Other investments include using artificial intelligence software to help predict volumes and adding real-time monitoring to more than 2,200 trailers.

Click for more FreightWaves articles by Nate Tabak.

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