Sam’s Club and Walmart supply chain teams to merge

Sam’s Club’s corporate supply chain team plans to merge with the supply chain team of parent company Walmart, according to a memo obtained by Business Insider

David Guggina, head of supply chain operations for Walmart, wrote the memo, which was sent to the Sam’s Club supply chain team.

In the note, Guggina expressed his excitement for the collaboration, stating it brought together “a supply chain that is future-ready to serve both Sam’s Club and Walmart for the long-term.”

Guggina also said the change will enable the two retailers to move faster and better leverage the enterprise system and infrastructure available.

“We’ve been making strategic investments in data, increasingly intelligent software, and robotics to increase capacity, accuracy, and speed of fulfillment,” he said in the memo.

Additionally, a Sam’s Club spokesperson told Business Insider that the merger will give employees seamless access to Walmart’s enterprise resources and will provide a clearer career path within the company.

No jobs are expected to be lost in the transition. Walmart has not responded to a request for comment.

Sam’s Club is the warehouse-style, membership-club offshoot of Walmart, which opened its first location in 1983. 

It’s the second dose of good news this week for Sam’s Club workers. On Tuesday, the warehouse retailer unveiled a plan where associate hourly wages will increase 3% to 6% based on years of service.

With the new pay scale in place, the average hourly rate for Sam’s Club associates is anticipated to be over $19, with the potential to earn thousands of dollars annually in bonuses.

The new plan goes into effect Nov. 2.