Wal-mart’s First Custom-built Distribution Center Won Award

Wal-mart’s Southern China perishable food distribution center in Dongguan, Guangdong Province, made its debut this March. This is Wal-mart’s first custom-designed and -built distribution center since it entered China 23 years ago. With the architectural design, energy saving temperature control, environmentally friendly cooling system, and smart lighting all meeting advance international standards, the project won the Gold Award at the 2019 China Retail Supply Chain Annual Conference.

Wal-mart invested RMB700 million (USD101.3million) to build this distribution center. This is the retailer’s biggest single investment in China since its market entry. This perishable food distribution center occupies a 95000㎡ piece of land and can simultaneously handle over 4,000 types of frozen, chilled, or shelf-stable products. With a total handling capacity of 165,000 cases (equivalent to 340 x 8-ton truckloads), it would supply more than 100 Wal-mart outlets in Guangdong and Guanxi provinces.

This Southern China distribution center is an integral part of Wal-mart’s global supply chain. It was designed according to US FDA and other related international standards for world-class perishable food distribution centers, equipped with the best temperature control hardware and management system. Its building’s architectural design incorporates green design concepts.

Wal-mart’s distribution center employs a central cooling system that optimizes the temperatures for various sections. It uses ammonia refrigeration which is not only energy saving but also better for the ozone layer.

The new distribution center consolidates purchase orders to enhance ordering efficiency and reduce waste. This offers upstream suppliers the benefits of higher efficiency and lower transportation cost. At the same time, it allows suppliers to integrate processing and storage facilities, creating scale economies and optimizing supply chain management.

Photo source: Wal-mart Media Center