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WalMart Stores’ Operation Management


In today’s world, in order to ensure the smooth running of the business, every organization must be ready to deal efficiently with different issues concerning the business. The organizations must be ready to accept changes and move accordingly. Each and every employee of the organization should work hard to ensure the efficient running of the business operation. The introduction of new technologies and developments has a profound effect on the performance of the organization. Any organization is in business because it has products, services, and in some cases, a combination of the two to offer to the customer.

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Definition of operation management

Operation management is the process that transfers inputs such as raw materials and labor into output in the form of finished goods and services. It is the responsibility of all the activities affecting the manufacturing or transferring process. It involves the responsibility of ensuring that business operations are well-organized and useful. Operations management is concerned with the management of the overall operations or functions of a business organization. Operation management can be defined as “the maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers. Operations management is not only applied in the organizations which are dealing with goods but also applied to the organizations which are dealing with services. The measurement and evaluation of operations are usually undertaken through a process of business appraisal.” (BNET business dictionary, 2009).

In operation management, product formation, development, production, warehousing, stock control, and transportation, etc., are involved. The efficiency and effectiveness of the process have great importance while designing the operational management system. Operations management also concentrates on the smooth functioning of the internal operations of the organization. The product has very importance in operations management.

Operation Management’s role in WalMart

WalMart is considered the king in the American retail market and is a total solution for the shopping needs of the people in America. WalMart has stores in another part of the world. There is a full-fledged operation management system in WalMart which contributes in a big way to the success of different stores under WalMart. The operation management in Walmart has a competent strategy for dealing with complicated situations. Different aspects of operation management are carried out efficiently and effectively. The purchasing process in Walmart is designed systematically. The purchase is carried out in such a way that there will be no shortage of any product at any time. It also makes sure that there is no excess stock of goods.

WalMart uses modern technology efficient functioning of the supply chain process.

“Much of the efficiency achieved by the company in managing its supply chain is because of its proactive use of IT and Internet-enabled technologies.” (Wal- Mart’s supply chain management practices (B): Using IT/ internet to manage the supply chain, 2004). The benefit of using advanced technology in supply chain management is that it can save money and time.

Sam Walton, the promoter of WalMart Stores, was always interested in using new technologies in the operation management process of the company because he knew that the effectiveness of the operation management process of a company determines the success or failure of that company. Around two decades back itself, WalMart introduced point-of-sales terminals, which helped the company to know the exact position of the stock as and when required. The company also implemented a system for gathering the stock data of different WalMart Stores to the headquarters. The company has a sophisticated system for connecting with the supplier. This system is designed in such a way that the suppliers will also be provided with the inventory information of WalMart Stores. WalMart Stores follow a Total Quality Management system in which each and every employee participates and ensures optimum quality for the task performed by each associate or employee. (operations management of WalMart find free college essays, 2009).

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The logistics system in WalMart is highly efficient and follows a strict cost control system which enables the company to offer goods to the customer at affordable and lower prices.

The success of a big business organization lies in its ability to make the goods available to the customers in different parts of the world as and when required.

“ This ability requires a flawless logistical system that allows the product to be shipped anywhere at a moment’s notice.” (Russell, 2009).

Shipping and transportation are some of the core elements of the operations management system. Well-organized shipping and transportation system plays a significant role in the success of a business operation and has a strong influence on the profitability of the organization.

To conclude, in WalMart, the operation management is running efficiently with the help of different modern technologies. That is one of the main reasons behind the continuing success of the retail giant.


BNET business dictionary: Business definition for: Operations management. (2009). BNET.

Operations management of walmart find free college essays: Operations management of walmart. (2009).

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Russell, Michael. (2009). Logistics at wal-mart. Ezine Articles. Web.

Wal-Mart’s supply chain management practices (B): Using IT/ internet to manage the supply chain: Abstract. (2004). ICMR: Center for Management Research. 2009. Web.

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