One of Sam's Club's corporate teams is merging with Walmart's. Read the memo announcing the 'big step.'
Courtesy of Sam's Club
- The corporate supply chain team for Sam's Club is merging with that of its parent company, Walmart.
- In a memo, Walmart's head of supply chain operations said the move will aid growth.
- A spokesperson told BI the plan gives Sam's Club better access to resources and job cuts aren't expected.
Sam's Club's corporate supply chain team is merging into the supply chain team of its parent company, Walmart, according to a memo obtained by Business Insider.
In an email to staff, Walmart's head of supply chain operations, David Guggina, welcomed the wholesale club team into the fold and said the move will aid growth for the companies.
"This is a big step in our growth journey, bringing together a supply chain that is future-ready to serve both Sam's Club and Walmart for the long-term," he said. "This change will enable us to move even faster and better leverage enterprise systems and infrastructure available to us."
A Sam's Club spokesperson told BI the plan gives Sam's Club supply chain employees more seamless access to Walmart's vast enterprise resources, as well as providing a clearer career path within the company.
Job cuts are not expected under the plan, the spokesperson said.
Sam's Club's revenue has grown by nearly 50% over the past five years on a flat US store count, as the broader wholesale club segment continues to boom.
To keep that sales growth rate high, Sam's Club has invested in new tech, like Scan-and-Go and the new AI-powered exit gateways unveiled earlier this year.
It also said last year it plans to open 30 locations in the next four to six years.
Walmart, meanwhile has directed considerable resources at modernizing its distribution centers with AI and robotics to improve speed and accuracy.
The moves could further extend Sam's Club's technological and logistical advantage over its larger rival, Costco, where features like in-stock information are just now beginning to be rolled out on the company's website and app.
Read the full memo:
From: EVP, Supply Chain Operations - David Guggina Leveraging Our Strengths as an Enterprise To: Supply Chain Home Office Associates Team, We have been on a journey of transforming our supply chain to continue to stay in front of customer expectations and enable everyday low costs. We've been making strategic investments in data, increasingly intelligent software and robotics to increase capacity, accuracy and speed of fulfillment. We have significant growth plans for both Walmart and Sam's Club and I'm excited about merging our Supply Chain team and the difference this will make for customers and members. To Sam's Club associates, welcome to the team. I understand that transitioning to a new team can bring up questions. Know that we are here to support you. This is a big step in our growth journey, bringing together a supply chain that is future-ready to serve both Sam's Club and Walmart for the long-term. This change will enable us to move even faster and better leverage enterprise systems and infrastructure available to us - all of which will help us achieve our ambitious growth goals and better serve our customers, members and associates. Thank you all for your commitment and dedication to serving our customers and members. I'm excited about what we'll achieve together.
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