In particular, Wal-Mart competes with other well-established online retailers such as Amazon. For online competitors, Wal-Mart differentiates itself by optimizing its supply chain and ensures that consumers can access the goods they need conveniently and promptly. Wal-Mart’s idea is to collaborate with its vendors by allowing the providers to manage their products in its warehouses. The program, known as Vendor-Managed Inventory (VMI), gives the suppliers the power to track their goods and replenish them promptly (Shin and Tucci 37). In doing so, Wal-Mart has gained global recognition as a retailer whose store will always have what the consumers want on the shelf.
Operations management is a field of management concerned with controlling the process of production and designing supervising, organizing and planning in the contexts of production. Also it includes business operations in the production of goods and services. It has the responsibility for ensuring that business operations are benefit and efficient. In other words, organization successfully processes from inputs to outputs in an efficient way. It is concerned to manage the process that turns inputs like raw materials, energy and labor (human resources- staff or workers) into outputs such as goods and services.
First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Due to Wal-Mart’s superior ability to order inventory on demand, they are in a position to also meet customer demand better than their competitors. This is especially true with fad products, because they are only popular for a limited amount of time when they become unpopular they can leave massive amounts of inventory that nobody wants to purchase. Due to Wal-Mart’s superior supply chain and their technology they are better able to avoid carrying an oversupply of fad items, and regular items as well.
Retail stores consider many factors when designing the store to assist with maximizing the experience that the customer will encounter. The average customer has no idea that the store places such amount of thought into the setup and design layout. Everything from the merchandise displays to the locations of certain departments are designed to increase the revenue and success of the store. The target market for the retail store is classified as the type of customer that will contribute to the success and can evolve over time if the store is experiencing difficult times. The ability to be fluid in decision-making is required because change is constant with any customer driven business.
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
Products would start out as raw materials and then the process of extraction would begin, there are a number of channels that may need to exist before the consumer could pick the product off the shelf. The packaging and distribution are important factors in this process. This whole process is called the chain of derived demand, everything is pulled through as a result of the demand for the product. Businesses that operate within the business-to-business markets purchase the materials with the objective of adding value, so they can ultimately move the product down the chain until the finished product reaches the general consumer. Marketing is reliant on the profitable satisfaction of needs, and both markets depend on the principle of delivering the right product to the right people, and at a right price.
Their main growth strategy is market penetration, where the company sells as many goods and services to their current target market as possible. They do so by offering discounts, promotions, and special packages tailored for the customers. The other strategies, while important, are not used as often. Walmart’s main objectives can be found in their Global Responsibility Report. First, they aim to create economic opportunity for associates and suppliers for their retails and supply chains.
1. What were the main elements of the control system that Sam Walton created? It is evident that Sam Walton believed in the importance of control systems in an organization; as he established certain strategic control systems in the company. Walton wanted everyone within the organization to be committed to Wal-Mart's goal "total customer satisfaction", and the strategic control systems were set accordingly. There are various elements of control systems used in Wal-Mart which are: Personal Control An example is when there is an underperforming store; top managers visit these stores in order to lend their expertise to the employees there.
Significant that knowledge can help buyers confirm they have enough amount of merchandise where and when customers wants to purchase it. They must develop strategies in response to use those changes. Retailing is being so modernized, to get success in retailing will require a clear vision and strong decision makers to see the clear picture of the future. In this article, they are thinking of counting people as they entered in a store using Wi-Fi-tracking system. For example, what time they come in and how long they stay in the store.