Purpose of Qualification Plan
Walmart is a shining example of success in today’s competitive retail environment, having solidly established its dominance not just domestically but also internationally. Since its founding more than 50 years ago, the retail behemoth has continually changed according to the shifting demands of the market and customers (Walmart, 2023). Every day, millions of people are served by its enormous network of stores, which ranges from hypermarkets to grocery stores and offers a variety of goods at affordable costs. The dedication of Walmart to operational effectiveness, with a focus on inventory management in particular, has been essential to its success.
The primary goal of this qualification plan is to evaluate Walmart’s inventory management system as it is now and suggest improvements that are consistent with the company’s long-term goals. Examining in-depth the benefits and drawbacks of the present inventory management system, comprehending its technological foundations, and determining how well it responds to market demands (Fang & Hc, 2021). Identifying areas where the integration of technology innovations, such as blockchain or AI-driven demand forecasting, might lead to increased efficiency (Gohil & Thakker, 2021). Creating a thorough inventory strategy that not only takes care of the issues at hand but also places Walmart in a position to profit from upcoming retail trends.
Analysis of Existing Systems
In the retail industry, Walmart’s inventory management system is a model of effectiveness. The company’s dedication to operational excellence is clear from the system’s real-time product tracking capability. However, although it has many benefits, Walmart’s operations are so large that they sometimes pose difficulties. Consistency problems arise when managing inventory across tens of thousands of retailers in various geographic areas. Walmart’s inventory system has faced issues due to the fast expansion of e-commerce. It can be challenging to provide real-time inventory synchronization across online and offline channels, which occasionally results in errors (Oguntala et al., 2018). Additionally, major world events like trade restrictions or pandemics can cause unanticipated supply chain disruptions, putting the inventory system’s adaptability to the test.
Proposed Inventory Management System
A new, improved system is suggested in response to the changing retail environment and the issues with Walmart’s present inventory management system. This system strives to combine the advantages of the current framework while using cutting-edge technology and approaches to remedy its weaknesses (Horváth & Szabó, 2019). The agility and adaptability of the new inventory management system will be its defining traits. The incorporation of a centralized database that provides a consistent picture of inventory across all Walmart stores and online platforms will be one of its key advantages. Ensuring real-time synchronization lessens differences in stock levels between online and offline sources. Advanced algorithms will also be used by the system to forecast demand using market analysis, seasonal trends, and past sales data.
Customers will be more satisfied thanks to real-time synchronization since they will know that they may buy the item they see online. Due to the reduced holding expenses and waste, Walmart can lower prices while maintaining competitive pricing for its consumers. The greater technological integration of the proposed system will result in considerable improvement. An increase in the use of RFID (Radio Frequency Identification) technology will make it possible to monitor goods more quickly and precisely from the supplier to the store shelf (Masudin et al., 2021). In order to facilitate speedier checkouts and effective restocking procedures, barcoding will be improved.
Implementation Strategy
A new inventory management system must be carefully planned, coordinated, and implemented, especially for a retail behemoth like Walmart. The plan presented here seeks to enable a seamless changeover from the existing system to the suggested one, with the least amount of interruption and the most significant amount of effectiveness. A thorough audit of the current system is the first stage in the installation process. The areas that require attention and the resources needed will be made evident by this audit.
After the audit, a pilot program will start at a few Walmart locations. The new system will be tested in this pilot, allowing for real-world analysis and alterations prior to a full-scale implementation. The system will need to be improved to ensure it matches the specific requirements of Walmart’s operations, and feedback from the pilot shops will be crucial in this process (Dutta et al., 2020). Training sessions will be scheduled in conjunction with the pilot program for staff members at all levels.
A gradual deployment will start when the pilot program is successfully finished and any required adjustments have been made. This staggered strategy, which begins with regional hubs and subsequently spreads to all Walmart locations, guarantees that any issues can be resolved quickly without harming the network as a whole. The audit and pilot program are anticipated to last six months in terms of timing. The ensuing training and staged deployment will take another year, and it is expected that it will take 18 months to finish the whole implementation process. The audit’s conclusion, the pilot program’s end, the start of the gradual deployment, and the system’s complete integration with all Walmart locations are important milestones.
Expected Outcomes and Benefits
A new era of operational excellence, characterized by notable advancements in several aspects of inventory management, is projected to begin with the implementation of the planned inventory management system at Walmart. An inventory system that is more responsive and agile will be one of the main results. Because of real-time synchronization and predictive analytics, Walmart may anticipate a significant decrease in stockouts and overstock situations.
The new method is expected to result in significant cost savings in terms of money. Walmart may save holding expenses related to surplus inventory by managing stock levels. Additional savings in transportation and storage will result from the improved efficiency of supply chain activities from supplier to retailer. Processes from asset management to product monitoring will be simplified by the use of cutting-edge technology like RFID and asset tags (Feng et al., 2020). This results in less manual involvement, fewer mistakes, and quicker, more precise processes.
The new approach guarantees that clients always have access to a more extensive product range, which has several advantages for them. By enabling quicker checkouts, improved barcoding will improve the in-store shopping experience. Customers can also anticipate constant product availability across channels because of the integration of online and physical inventories, which strengthens their faith in and devotion to the Walmart brand (Chen & Chi, 2021). In conclusion, Walmart is promised a comprehensive makeover with the suggested inventory management system.
References
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Dutta, P., Choi, T., Somani, S., & Butala, R. (2020). Blockchain technology in supply chain operations: Applications, challenges and research opportunities. Transportation Research Part E-logistics and Transportation Review, 142. Web.
Fang, X., & Hc, C. (2021). Using vendor management inventory system for goods inventory management in IoT manufacturing. Enterprise Information Systems, 16(7). Web.
Feng, H., Wang, X., Duan, Y., Zhang, J., & Zhang, X. (2020). Applying blockchain technology to improve agri-food traceability: A review of development methods, benefits, and challenges. Journal of Cleaner Production, 260. Web.
Gohil, D., & Thakker, S. V. (2021). Blockchain-integrated technologies for solving supply chain challenges. Modern Supply Chain Research and Applications, 3(2), 78–97. Web.
Horváth, D., & Szabó, R. Z. (2019). Driving forces and barriers of Industry 4.0: Do multinational and small and medium-sized companies have equal opportunities? Technological Forecasting and Social Change, 146, 119–132. Web.
Masudin, I., Ramadhani, A., Restuputri, D. P., & Amallynda, I. (2021). The effect of traceability system and managerial initiative on Indonesian food cold chain performance: A COVID-19 Pandemic perspective. Global Journal of Flexible Systems Management, 22(4), 331–356. Web.
Oguntala, G., Abd-Alhameed, R. A., Jones, S. M., Noras, J. M., Patwary, M., & Rodriguez, J. (2018). Indoor location identification technologies for real-time IoT-based applications: An inclusive survey. Computer Science Review, 30, 55–79. Web.
Walmart. (2023). About Walmart. Web.