10 May 2022


Operations management analysis

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Academic level: College

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Walmart is one of the greatest operational and logistic triumphs by retailing giant stock commodities made in more than 70 countries and controls more than 11,000 stores in 27 nations around the universe. The Walmart manages a mean of $32 billion in inventory. Riding an increasing six-year trend, Walmart reports grosses of &486 billion in the fiscal year that end 2015 which is an increase of almost $10 billion from the 2014 fiscal year. The company has reported grosses of about $408 billion over the last five years. The revenue generation is due 4,500 stores located in the United States of America which enhance the move of the supply chain of the company from No. 14 to No. 13.

An organization has to have an efficient and effective supply chain and management system and strategy so has to manage the and maintain the performance. The entire business has a commitment to an organizational model of driving expenditure from the supply chain to facilitate clients to save money and sentient better. The company has grown into one of the most world’s leading and possibly most official retailer with the highest inventory turnover and sales per square foot. Also, the company enjoys high operating revenue of any subtract retailer. The organization is synonymous with the perception of effective supply chain management due to the transitions of the company from regional to the retailer to a universal powerhouse.

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The primary goal of Walmart is to provide clients with the goods they demand in a convenient way, be either time or place. Later the company focuses on the cost development system which enables the organization to provide daily low prices. Also, the group concentrates on developing a more advanced system and progressive supply chain management plan to adventure and improve its competitive power and take up a market leadership position. Walmart embarks in a strategic track downs to find the commodities at the favorable price to the suppliers in the position of meeting the demand. The business partners with its merchants creating the power for long-term and large volume buying for the lowest price. The effective communication and association between the company and the clients increase the material flow with minimal inventories which streamlines the supply chain management of the enterprise. There is a collaboration of various retail stores in the different places of the world to make the company work like a single firm.

The primary inventory tactic the company uses is Cross Docking, which is the logistics system of the organization. Cross Docking means transferring of commodities from outbound or inbound truck trailers with minimal storage. The company ensures that they occur zero storage cost by offloading products incoming railroad car or semitrailer and loading the products directly into outbound trailers, rail cars, or trucks and vice versa with zero storage cost in between. The suppliers deliver products to the company’s distribution centers where the commodities are cross-docked and immediately delivered to the organization’s stores. The cross-docking policy ensures the maintenance of low transportation and storage cost. Also, the plan enhances the elimination of inefficiency by reducing transportation time with the help of non-unionized drivers who delivers products continuously to the distribution points. Right cross from one dock to another in less than 24 hours and delivered to the distribution centers where they are repackaged and distributed without storing them. The policy of cross docking, products route from the supplier to the organization’s warehouse, where they are shipped to stores exclusive of sitting in the inventory for a longer time thus reducing Walmart’s cost efficiently and passing the saving to the clients with a high competitive price.

The company is embracing technology to be an innovator in the plan that stores will track inventory and restock the entire shelves, thus allowing Walmart to cut cost. Technology has a key role in the company’s supply chain since it is the pillar of the supply chain. The organization has the largest information technology infrastructure as compared to other private enterprises in the world. Also, the availability of the art technology network design allows the company to forecast the demand precisely, predict and track inventory levels, manage client’s relationship, and service response, and create an efficient transportation route. The innovation came upon due to the need to limit the amount of information shared with their partners since the change allows manufacturers and suppliers within the supply chain to synchronize their demand prognostications under a detailed planning. Also, the manufacturers and suppliers have the chance to forecast and replenish commodities because there a connection between every link in the chain with any other link in the chain by the central database system (Khosrowpour, 200).

The organization’s approach to technology means regular collaboration among stores, suppliers and distribution stores hence less centralized mechanism. Furthermore, the organization’s supply chain allows customers to influence merchandise actually to stores rather than having the group to control products into shelves. Besides, Walmart is using radio frequency identification tags (RFID), which applies numeric codes that can be examined through distance to trace pallets of products moving along the supply chain. Thus, suppliers have to use RFID technology so has to handle inventory with the company. The organizations chain management scheme provides the firm with numerous sustainable competitive powers, including low item cost, reduced inventory transport cost, improvement in-store assortment, and selection, increased competitive prices for the consumers. The plan plays a role in the dominance force of the organization in a competitive worldwide market. Advancement of technology is enabling the company to focus on pioneering systems and processes to increase the supply and attain greater efficiency.

The company is using smart tags, readable by handheld scanners that allow workers to learn which products need to be changed so that there is a consistent stock in the story which enhances inventory control. There is a reduction in the out-of-stock as the outcome of RFID. Also, the replenishment of product is three times as fast as compared to bar coding system. The company networks and the vendors through computers and its entrance in the P&G are to maintain the level of inventory in the stores and create an automated re-ordering plan. The program links all computers between P&G plant by satellite communication system and then P&G has to deliver the product either to a customer of Walmart.

Walmart’s comprehensive strategies of supply chain management are different from the primary constituents of supply chains: operations, purchasing, distribution, and integration. The supply chain of the company begins with purchasing managers who establish which products the company will sell, find suppliers, and arrange deals for the items. The operation part of a supply chain aims at the planning of demand, forecasting, and stock management. Forecasting estimates the customer’s demand for the item regarding on the historical data, changes in business trends and competitions, and external drivers such as promotions and sales. Demand planning is useful in the creation of accurate forecast which is a crucial step towards stock management. Also, the comparison of forecast and inventory is helpful in ensuring that there is enough inventory in the warehouses. Moving the commodity from the manufacturing plants or warehouses and ultimately to clients is the distribution function of the supply chain. For the supply chain management of Walmart, they lead to lower cost for inventory and production. Supply chain integration joins the flow of information and works with all connectors in the supply chain to upsurge efficiency. Also, the methods ensure a better control over collection in the stores and the critical outcome of lower prices are passed to customers.

In the recent years, the company is facing challenges on several obstacles including the management problems and stakeholders. The organization fails to keep up with the challenges in the market, and they have a slow reaction to change. Also, buyer’s behavior and taste change with time and the business landscape has advanced because what succeeds the previous year has no guarantee to succeed the last year thus making it difficult for the company to operate as usual. Furthermore, competition is high since many private companies have an interest in the industry of Walmart, which makes it hard for Walmart to cover its running cost and management cost. As a new management has to develop a useful strategy to satisfy the customers in the market, the management of the company has to create a vast market for the business’s products. The established markets have to lean, landscape and mean implying that the market has to be ready to swallow other big competitors (Lewis, 2007).

Implementation plan

• The first stage is to determine the budget of the organization which is necessary when the product is finalized.

• The second stage is to find out the members of the product team since it is almost impossible for an individual to launch the product solely

• It is necessary to develop website strategy which so has to create room for the customer responses

• Development of the buzz strategy which shall go beyond the mere PR and media list so as to create a communication channel with the customers.

• A social media strategy is crucial where the product will be advertised regular and improve the social relationship with the clients.

• Gathering ideas from the masters so as to obtain inspiration and an experience approach to customers and vendors.

• The figure of the launching party which will state how the party will look like and the acknowledgment of the day. Also, the party is another opportunity for the consumers to interact with the producers and supply freely.

• The plan of stock up on promotional items which will be the primary long-term advertisement strategy

• It is necessary for the company to consider wildcard ideas which are easy to dismiss.

• Planning for the pre-launch and post-launch plan by matching the strategies into specific timeframes

• Implementation of the project which is the time to execute the plan.


Lewis, P. S. (2007). Management: Challenges for tomorrow's leaders . Mason, OH: Thomson/South-Western.

Khosrowpour, M., & Information Resources Management Association International Conference. (2000). Challenges of information technology management in the 21st century: 2000 Information Resources Management Association International Conference, Anchorage, Alaska, USA, May 21-24, 2000 . Hershey, Pa. [u.a.: Idea Group Publishing.

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