Introduction
Walmart is a Fortune 500 company of particular interest for analysis. The corporation is a profitable and renowned retailer that functions online and offline and continuously grows through mergers and acquisitions (Bixler & Honhon, 2021; Chiu et al., 2021). Walmart successfully performs in a challenging business environment and has a comprehensive process of managing its immense inventory, but it could improve by making minor changes to its operations.
Overview of the Company’s Industry and Core Offerings
The industry in which Walmart functions is rather demanding. Walmart is the most significant offline player in the global retail sector and plays a substantial role in online sales across the US (Chiu et al., 2021). However, achieving such a position is not easy since those operating in the industry are in an ongoing contest. For example, retailers search for diverse solutions to remain cost-competitive compared to their rivals and offer product availability (Bixler & Honhon, 2021).
One distinct feature of Walmart’s business environment is that the sector is dependent on a specific period, with, for instance, the holiday season being the strongest sales time of the year. As a result, firms working in the market increase their inventories, hire additional staff members, and develop new promotions in preparation for a particular high season (Chiu et al., 2021). Consequently, the retail industry in which Walmart operates can be characterized by persistent competition and dependence on a period.
Current Process for Managing Inventory, Supplies, or Quality Control
One of the substantial elements of Walmart’s operations is managing inventory. The retail sector relies on stock decisions, which affect a corporation’s performance, product availability, overall value, marketing, and finances (Bixler & Honhon, 2021; Chuang et al., 2019). For example, it is influential to properly organize inventory since holding too many excess goods is likely to be disadvantageous (Chuang et al., 2019). A significant part in stock control is played by backrooms, where products are kept but also where commodities may be misplaced or become inaccessible (Bixler & Honhon, 2021).
Walmart is said to be among the leaders in inventory management. First, the company has reduced its merchandising stocks to elevate its goods performance (Chuang et al., 2019). Second, the firm has devised a “Top Stock” approach and moved its backroom inventory to its sales floor’s top shelf for better visibility, space, and customer service (Bixler & Honhon, 2021, p. 6). Moreover, such a method prevents “phantom stockouts” and reduces errors (Bixler & Honhon, 2021, p. 7). Accordingly, Walmart’s inventory management focuses on preventing excessive goods from piling up in backrooms.
Proposed Process Improvements to Enhance Product or Service Delivery
Although Walmart has succeeded in controlling its stock, there are some improvements the business may need to consider. First, Walmart should develop and implement a thorough planogram design to handle unwanted overflow inventory, which may occur when retailers disregard backrooms (Bixler & Honhon, 2021). Second, while the company has cut off its merchandising, Walmart should have a safety stock to be prepared for large demand fluctuations and sales opportunities (Chuang et al., 2019). Third, Walmart may benefit by adopting a risk-response approach with solutions for, for instance, delayed delivery tracks since the corporation’s current process appears to work best in stable situations (Bixler & Honhon, 2021). Walmart’s stock management can be improved by certain precautions, which may be small but will likely ensure that end customers always receive the necessary products.
Conclusion
To conclude, Walmart has thrived in the retail environment and has implemented a comprehensive inventory control process, yet there are certain elements the firm may need to enhance. The company’s industry is challenging due to ongoing competition and dependence on a specific season. Nonetheless, Walmart has succeeded by, for example, adequately managing its goods by making them more visible and available to clients. At the same time, Walmart must remember that there is room for improvement and be ready for unexpected events.
References
Bixler, M. J., & Honhon, D. (2021). Exploring the connections between backrooms, inventory record inaccuracies, and waste. Sustainability, 13(17), 1-12. Web.
Chiu, Y. L., Hsu, Y. T., Mao, X., & Wang, J. N. (2021). An empirical study of holiday season discounts: A comparison between third-party marketplace sellers and fulfilled by Walmart sellers. SAGE Open, 11(2), 1-11. Web.
Chuang, H. H. C., Oliva, R., & Heim, G. R. (2019). Examining the link between retailer inventory leanness and operational efficiency: Moderating roles of firm size and demand uncertainty. Production and Operations Management, 28(9), 2338-2364. Web.