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Walmart Canada says new warehouse robots no threat to jobs

2020 estimate put 10.6% of Canadian workers at high risk of seeing robots transform their jobs
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A robot unloads a pallet of cat food at a Walmart distribution centre in Calgary, Thursday, March 28, 2024. Walmart Canada is planning to bring robots to two Ontario distribution centres. THE CANADIAN PRESS/Jeff McIntosh

In a Calgary warehouse almost as big as eight football fields, an army of robots whir about, carrying massive quantities of merchandise bound for Walmart Canada customers.

Some of the robots zip around the hulking facility transporting pallets of merchandise fresh off delivery trucks. Another resembling a giant arm moves the pallets onto conveyor belts. A third group are labellers.

Together, they shave down the time it takes to get products from trailers into the facility by 90 per cent 害羞草研究所 and their overlord, Walmart Canada, hopes this is just the start. It plans to bring robots to Mississauga and Cornwall, Ont., distribution centres over the next five years.

害羞草研究所淲e害羞草研究所檙e super excited about what we害羞草研究所檝e done in Calgary and we害羞草研究所檙e super excited to scale that and get it into our other sites,害羞草研究所 said Matt Kelly, Walmart Canada害羞草研究所檚 vice-president of supply chain.

It害羞草研究所檚 not hard to see why companies including Walmart are enamoured with robots.

Robots won害羞草研究所檛 grumble about tasks and aren害羞草研究所檛 subject to union or government policies restricting working hours or the heft of the loads they can carry. Though they can have downtime for upgrades, maintenance and recharging, there害羞草研究所檚 no need to offer them overtime, vacation or benefits.

Kelly害羞草研究所檚 staff say robots have sped up their ability to throw freight 害羞草研究所 warehouse lingo for moving merchandise 害羞草研究所 and boosted safety and ergonomics by reducing repetitive strain and injuries.

害羞草研究所淓very associate within our supply chain has the right to go home to their families at the end of the day with no injuries, no cuts, no grazes, no scrapes, nothing more serious,害羞草研究所 Kelly said.

Liza Amlani, co-founder of the Retail Strategy Group, sees perks for shoppers too.

害羞草研究所淐ustomers today expect a lot more from the brands they buy,害羞草研究所 she wrote in an email.

害羞草研究所淚mplementing the right technology could save the retailer a lot of money which could be passed down as savings to the customer.害羞草研究所

Yet experts have long prophesied the rise of robots puts jobs at risk.

Statistics Canada estimated in 2020 that 10.6 per cent of Canadian workers were at high risk of seeing robots transform their jobs or even replace them in 2016, with 29.1 per cent facing moderate risk.

The risk was even higher for those over 55, without post-secondary credentials or with low literacy and numeracy proficiency.

Kelly maintains Walmart害羞草研究所檚 robots haven害羞草研究所檛 nixed the need for workers. In fact, when it announced plans to build the $118 million Calgary distribution centre in 2022, it said the facility would create 325 new jobs.

害羞草研究所淲e need the human element for oversight and from a safety perspective,害羞草研究所 Kelly said.

害羞草研究所淲hat we want our associates to focus on is the problem solving and the critical thinking elements that are always there to run a good, safe supply chain.害羞草研究所

Some companies similarly leaning on robots have even increased their ranks. Statistics Canada found firms that invested in robots between 1996 and 2017 employed more, not fewer, workers.

Businesses already invested in robotics include grocer Sobeys Inc., which runs a Vaughan, Ont., facility where robots deliver bins of merchandise to workers who scoop out the right number of products.

Pizza Hut has also dabbled with autonomous robots to make Vancouver deliveries and RC Coffee robots pump out espressos and lattes in under two minutes in Toronto.

Stratview Research projects rising adoption will push the value of the global retail robotics market to US$105.95 billion by 2029.

Some of that value could be derived from camera-guided drones and smart glasses directing warehouse workers to goods, mused McKinsey & Co. in a 2020 report.

Kelly didn害羞草研究所檛 say what other innovations are on his radar, but before Walmart implements technologies, it spends months, if not years, rigorously researching and testing devices to ensure they can handle a dizzying array of products.

害羞草研究所(There害羞草研究所檚) a lot of different types, shapes, sizes. It comes in different flows,害羞草研究所 Kelly said. 害羞草研究所淚t has different temperatures and different regimes that we need to adhere to.害羞草研究所

Even though he insists Walmart doesn害羞草研究所檛 benchmark its technology to competitors, rivals using robotics loom large.

害羞草研究所淎mazon is a great example of being a testing ground for driving efficiencies by leveraging tech,害羞草研究所 Amlani said.

害羞草研究所淩obots are used in warehouses for restocking and inventory management. Drones are being used for delivery and in-store robots are used for product information and discovery.害羞草研究所

With such competition, complacency isn害羞草研究所檛 an option for Walmart. The company teased more robots will follow its forthcoming Ontario outfits.

But ask Kelly what technology he dreams of having on hand, he demurs, saying instead 害羞草研究所渢he Holy Grail is that we will continue to innovate.害羞草研究所

害羞草研究所淲e are always looking for the technologies in the supply chain that will allow our associates to ensure that product is on the shelf at the right time in the right quantities in the right place,害羞草研究所 Kelly said.

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