Amazon and Alibaba are pacesetters of the next supply-chain revolution

GREG SMITH is obsessed with the freshness of strawberries. Walmart’s top supply-chain executive in America is overhauling the retail giant’s distribution system, and in his mind speed is paramount. Strawberries have only 12.2 days of life after picking, he reckons, and the firm did not always get them to stores fast enough. The radical changes he is introducing can sometimes cut three to four days out of their journey to the store.

In the past, Walmart had a one-size-fits-all approach to its supply chain, he says, but now it is fast-tracking certain perishable and quick-selling goods. It used to keep inventories stored at warehouses, but now it is “flowing” priority goods directly to retailers. When his lorries get to stores, fresh items are sent directly to shelves for purchase rather than sitting in back rooms.

To gauge progress, visit a Walmart outlet down the road from the company’s headquarters in Bentonville, Arkansas. A robot made by Bossa Nova, a Californian startup, roams the isles scanning every shelf for out-of-stock items. The back of the store houses a semi-automated system for unloading lorries. The stockroom is surprisingly bare. An inspection of the produce aisles confirms that the strawberries are, indeed, delectably fresh.

The story of the speedy strawberry illustrates a broader transformation...

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