Ranpak Holdings Corp (NYSE:PACK) shares moved higher on Tuesday after the company revealed an expanded partnership with Walmart Inc. (NYSE:WMT).
The retail giant will install Ranpak’s AutoFill systems across its Next Generation Fulfillment Centers as part of a multi-year automation agreement aimed at boosting efficiency and reducing packaging waste.
Under the agreement, Walmart will deploy the automated packaging machines at five key fulfillment centers nationwide.
The rollout is designed to speed up deliveries, streamline operations for associates, and cut excess packaging materials.
Ranpak, a leader in sustainable packaging automation and AI-driven robotics, first introduced the AutoFill solution at Walmart’s McCordsville, Indiana facility.
According to Benzinga Pro, PACK stock has lost over 20% in the past year.
The upcoming installations will include centers in Pennsylvania, Illinois, Texas, and California.
The new deal represents a significant scaling of Ranpak’s presence within Walmart’s supply chain operations.
The AutoFill system, launched in 2021, uses machine vision and artificial intelligence to measure empty space in shipping boxes.
Combined with Ranpak’s Decision Tower, the technology automatically determines the optimal amount of filler material, reducing waste and minimizing product damage during delivery.
The process also increases throughput, enabling faster customer shipments and allowing associates to focus on higher-value tasks.
“Our collaboration with Walmart represents a significant milestone for Ranpak as we continue to scale our automation capabilities to meet the needs of the world’s largest retailers,” said Omar Asali, chairman and CEO of Ranpak.
Asali noted that Walmart’s investments highlight a shared goal of simplifying employee workloads while maximizing supply chain performance.
“At Walmart, we are constantly seeking solutions that increase speed of service for our customers and simplify work for our associates,” said Vik Gopalakrishnan, senior vice president of automation engineering at Walmart. “Ranpak’s Autofill system offers us a meaningful way to reduce packaging waste and get our products into our customers’ hands faster.”
According to Benzinga Pro, WMT stock has gained over 25% in the past year. Investors can gain exposure to the stock via Global X Funds Global X PureCap MSCI Consumer Staples ETF (NYSE:GXPS).
The deal highlights Walmart’s broader strategy to lean on automation for supply chain improvements, while giving Ranpak an opportunity to expand its footprint with a global retail leader.
Price Action: WMT shares are trading lower by 0.53% to $95.62 at last check Tuesday. PACK shares are trading higher by 20.70% to $5.830 at the time of publication.
Read Next:
Image via Shutterstock
