Walmart to Open Second Consolidation Center

Walmart will open its second consolidation center, which will improve the efficiency and operations of its supply chain.
Zachary Russell
Associate Editor
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Walmart consolidation center Lebanon, Pa.

Later this month, Walmart is slated to open a new, high-tech consolidation center in Lebanon, Pa. that will bolster the retailer’s supply chain.

The new 400,000 square-foot facility, located at 1625 Heilmandale Road, will bring nearly 1,000 additional jobs to the area, 500 of which were hired in advance. Using automated technology, the facility will enable three-times more product to flow through the center and onto distribution centers.

The Lebanon consolidation center will service all 42 regional distribution centers across the U.S., with plans to service fulfillment centers in the near future.

“We’ve made continued investments in our people, facilities and technology to ensure we have the right product, in the right place, at the right time,” said Mike Gray, SVP of Supply Chain Operations at Walmart. “As part of these investments, the Lebanon facility will provide even more opportunities for small to medium sized suppliers who do not ship nationwide, the ability to provide product to all 4,700 Walmart stores.”

The second of two consolidation centers, the new facility will receive general merchandise items from suppliers in smaller freight loads, known in the industry as less than a truckload (LTL) and consolidate them into larger freight loads, known as full truckloads (TL). Then the product is shipped to regional distribution centers where it is sorted for distribution to stores. 

Suppliers will now be able to deliver merchandise to one singular location for consolidation versus shipping separate orders for each of the 42 regional distribution centers. The automation via the new facility will simplify purchase order fulfillment, reduce lead times and increase speed to customers.

“Walmart is creating the future of supply chain—a modern system that pairs the latest in software and automation technologies, with a highly trained and specialized workforce of Walmart associates—to disrupt the industry as we know it,” said David Guggina, SVP of Innovation & Automation at Walmart. “It’s an exciting time to join our second high tech consolidation center in Lebanon. At this facility, we’re implementing the technologies Walmart will continue to roll out throughout our supply chain network."