Walmart has made the news several times already for its technological innovations. Even in 2017, Forbes was already reporting how the retail chain was moving toward high-tech. Four years later, it seems like this quality has remained faithful.
More than that, Walmart might be a leading name in the list of large retailers pushing for automation and similar technologies. It has grown to be considered a rival to Amazon, one of the world's most prominent innovators on multiple fronts.
On its own, automation has also been a central concept in real estate and multiple industries. Large brands backing its development could prove vital support for further improvements this year.
If you’re interested in implementing automation, make sure to work with professionals. As you’ll see in this article, rushing automation can be a dangerous move. We invite you to contact our robotic process automation services to guarantee results.
Walmart’s considerable move toward digitization
Let's start with a look at Walmart and how its investments can pave the way for innovation on multiple fronts. Recently, CNBC released an article detailing the chain’s plans to improve its technologies.
Considerable development is how Walmart plans to dedicate several stores purely for fulfillment. It plans to turn these fronts into automated warehouses. This move anticipates consumer demand increases as the pandemic subsides.
Walmart has been testing automation since 2019, implementing systems to process orders. However, automating more stores will drive the company to test other configurations, solutions, and providers.
The number of stores planned for automation and the actual extent of the strategy is still unclear. However, we can learn a couple of things from recent reports.
Fulfillment automation
Primarily, the automation strategy aims to rid employees of having to retrieve every item within an order. Fulfillment centers will combine human and machinery resources for this task. Ideally, robots will deliver the items to an employee for order assembly.
Additionally, workers will only handle fragile items. This move can prove vital for maintaining profitability since online groceries spiked in demand during the pandemic. Technological innovation has enabled Walmart to survive—and even benefit—from the pandemic’s changes.
The extent of tech spending by Walmart
While the CNBC report didn’t mention capital expenses, Bloomberg does provide a number. According to the article, Walmart plans to invest around $14 billion between supply chain optimization and process automation.
It’s worth noting that this amount will add to the $10 billion budget spent on CAPEX last year. The article goes into the fulfillment goal behind this development, but it also mentions a 79% growth in eCommerce sales for the retail giant.
With the announced wage increases, these plans seem to be part of a previously-determined strategy. However, the pandemic forced the company to “speed up” several plans, including these two.
Digital adoption: A crucial factor for competitive relevance
Before closing Walmart's subject, we also want to go through this 2019 article from Market Realist. It also sheds light on Walmart’s innovation efforts, but it offers great insight into how these attempts have benefitted the company.
It's worth noting that Walmart has gone beyond mere automation. It's a great example of digital adoption and how this strategy can be crucial for a company's growth.
The Walmart case study
Walmart used to be one of the biggest retail chains around the world. We say “used to” because it has proven to be a mighty name in the eCommerce space. The company has invested considerable resources to remain competitive in front of companies like Amazon.
Sure, Walmart has become a prominent force in the online retail industry, but what does that mean for real estate? Technological implementation is behind this growth, and today, virtually any company has access to the same software.
Retail and technological innovation
Walmart has also led innovation in the industry. In Mexico, Walmart developed an app for customers without a bank account. It enables clients to deposit cash into their app to use online or in physical stores. It even works with other bills.
It would be an understatement to say that Walmart is an example for any retail brand. One of the major hits from the pandemic to traditional business was their under-preparedness. Rushing the move toward remote work and digital adoption was a considerable investment during a period where financial uncertainty was the norm.
What can commercial real estate learn from this?
Property managers can learn a couple of things from Walmart’s example. The first one is what we already mentioned: digital adoption is a vital advantage in many ways. It allows for more versatility and resilience in case of turmoil.
However, digital adoption requires consideration, mainly because it's a broad concept that includes different approaches. If you wish to learn more and ensure success, we advise you to work with a professional digital adoption consultant.
On the other hand, it also exemplifies what property managers should look for in commercial tenants. As the global economy recovers with vaccination and easing lockdowns, choosing the right tenants makes a world of difference.
Property managers will have to keep in mind their prospects' innovative efforts and how they've weathered the crisis. Retail was one of the most prominent pandemic victims, yet Walmart managed to survive thanks to their technology implementation.
Retailers have been pushing for store automation for years now
Walmart isn't the only name behind the demand for automation developments. It's also not the only one spending years on it. Retailers have been pushing for automation to overcome eCommerce's growth for a while, as this article from The New York Times in 2018 shows.
While most developments were from China, it sheds light on how automation has been necessary for years. Robots for item management and shopping apps have been growing in popularity in recent years.
Store automation and big data implications
As the article mentions, store automation requires companies to keep their eyes on customers at all times. It has nurtured concerns over customer privacy because of all the data gathered from these users.
However, that’s important news for big data analysis. Companies can gather information like locations, product preferences, rush hours, and more. So far, this information has helped anticipate when more personnel is required.
Nevertheless, this information can prove invaluable when deciding on property investments. Data like higher traffic areas and residential spaces nearby commercial properties are vital for proper automation. Yet, it also offers a unique insight into an investment's potential returns.
2021 predictions: Will automation become a necessity for businesses?
As we've explained, automation is likely to become more than an advantage shortly. This article from Forrester also agrees with that thesis. Automation has evolved from an exciting technology to a lifesaver for countless businesses.
Between remote work, recessionary concerns, and a need for digital solutions, 2020 provided enough reasons to prioritize process automation. 2021 will likely maintain this momentum, paving the way for significant developments we can't overlook.
1. IDEPs becoming commonplace
Intelligent document extraction platforms offer unique advantages for real estate companies. It enables firms to manage contract analytics, measure risk, and more, parting from data extraction. Developments in machine learning can make this technology the standard for plenty of firms.
2. Automation taking a holistic approach
Automation will evolve from a unique technology to a portion of a more extraordinary approach. Modern software solutions integrate seamlessly with automation features. That process automation will likely be more easily accessible as a feature in other platforms.
3. Rushing automation will take a toll
The speedy implementation of automation scripts came with consequences. As companies feel pressured to implement it out of necessity, false expectations and user errors are commonplace. 2021 could bring new obstacles to these cases.
Which trends could develop from this demand?
Finally, this increase in demand for advanced automation developments will nurture growing trends. Before closing 2020, The Enterprisers Project released an article about upcoming trends for this year.
Before closing, let’s go through them to help you get an idea of what to expect.
1. Re-evaluating current automation initiatives
Companies will realize the mistake of implementing automation without a specific focus. As the consequences start to manifest, many firms will refocus their efforts to evaluate implementation results and correct mistakes.
2. Process optimization for proper RPA
Robotic process automation won’t work if there’s a problem with the process it’s trying to automate. Companies will notice the importance of optimizing all automatable processes before implementing automation scripts.
3. Expanding automation uses
Automation has been standard in finance and accounting departments. However, social media marketing and customer engagement have started to enjoy process automation. As users get used to the technology, more uses will become commonplace.
4. Data privacy will become the main concern
One of the main concerns about automation is how it depends on big data. If an automation solution has security “backdoors,” this data could become compromised. Data privacy will likely gain considerably more attention as RPA becomes more popular.
5. Automation integrations will become crucial
Finally, automation will gain more popularity as it offers more integrations with ERP, CRM, and other software types. Similarly, apps that offer automation capabilities will become significantly more valuable.