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Case Study: Inventory Management Practices at Walmart

About walmart.

Wal-Mart Stores, Inc. is the largest retailer in the world, the world’s second-largest company and the nation’s largest nongovernmental employer. Wal-Mart Stores, Inc. operates retail stores in various retailing formats in all 50 states in the United States. The Company’s mass merchandising operations serve its customers primarily through the operation of three segments. The Wal-Mart Stores segment includes its discount stores, Supercenters, and Neighborhood Markets in the United States. The Sam’s club segment includes the warehouse membership clubs in the United States. The Company’s subsidiary, McLane Company, Inc. provides products and distribution services to retail industry and institutional foodservice customers. Wal-Mart serves customers and members more than 200 million times per week at more than 8,416 retail units under 53 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Wal-Mart employs more than 2.1 million associates worldwide. Nearly 75% of its stores are in the United States (“Wal-Mart International Operations”, 2004), but Wal-Mart is expanding internationally. The Group is engaged in the operations of retail stores located in all 50 states of the United States, Argentina, Brazil, Canada, Japan, Puerto Rico and the United Kingdom, Central America, Chile, Mexico,India and China.

inventory management at walmart

Walmart Inventory Management

Wal-Mart had developed an ability to cater to the individual needs of its stores. Stores could choose from a number of delivery plans. For instance, there was an accelerated delivery system by which stores located within a certain distance of a geographical center could receive replenishment within a day. Wal-Mart invested heavily in IT and communications systems to effectively track sales and merchandise inventories in stores across the country. With the rapid expansion of Wal-Mart stores in the US, it was essential to have a good communication system. Hence, Wal-Mart set up its own satellite communication system in 1983. Explaining the benefits of the system Walton said, “I can walk in the satellite room, where our technicians sit in front of the computer screens talking on the phone to any stores that might be having a problem with the system, and just looking over their shoulders for a minute or two will tell me a lot about how a particular day is going. On the screen, I can see the total of the day’s bank credit sales adding up as they occur. If we have something really important or urgent to communicate to the stores and distribution centers, I, or any other Wal-Mart executive can walk back to our TV studio and get on that satellite transmission and get it right out there. I can also go every Saturday morning around three, look over these printouts and know precisely what kind of work we have had.”

Wal-Mart was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price markdowns. Instead of cutting inventory across the board, Wal-Mart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels. Wal-Mart also networked its suppliers through computers. The company entered into collaboration with P&G for maintaining the inventory in its stores and built an automated reordering system, which linked all computers between P&G and its stores and other distribution centers. The computer system at Wal-Mart stores identified an item which was low in stock and sent a signal to P&G. The system then sent a re-supply order to the nearest P&G factory through a satellite communication system. P&G then delivered the item either to the Wal-Mart distribution center or directly to the concerned stores. This collaboration between Wal-Mart and P&G was a win-win proposition for both because Wal-Mart could monitor its stock levels in the stores constantly and also identify the items that were moving fast. P&G could also lower its costs and pass on some of the savings to Wal-Mart due to better coordination.

Employees at the stores had the ‘Magic Wand,’ a hand-held computer which was linked to in-store terminals through a radio frequency network. These helped them to keep track of the inventory in stores, deliveries and backup merchandise in stock at the distribution centers. The order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system. Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves. Wal-Mart also made use of the sophisticated algorithm system which enabled it to forecast the exact quantities of each item to be delivered, based on the inventories in each store. Since the data was accurate, even bulk items could be broken and supplied to the stores. Wal-Mart also used a centralized inventory data system using which the personnel at the stores could find out the level of inventories and the location of each product at any given time. It also showed whether a product was being loaded in the distribution center or was in transit on a truck. Once the goods were unloaded at the store, the store was furnished with full stocks of inventories of a particular item and the inventory data system was immediately updated.

Wal-Mart also made use of bar coding and radio frequency technology to manage its inventories. Using bar codes and fixed optical readers, the goods could be directed to the appropriate dock, from where they were loaded on to the trucks for shipment. Bar coding devices enabled efficient picking, receiving and proper inventory control of the appropriate goods. It also enabled easy order packing and physical counting of the inventories. In 1991, Wal-Mart had invested approximately $4 billion to build a retail link system. More than 10,000 Wal-Mart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories. The details of daily transactions, which approximately amounted to more than 10 million per day, were processed through this integrated system and were furnished to every Wal-Mart store by 4 a.m., the next day. In October 2001, Wal-Mart tied-up with Atlas Commerce for upgrading the system through the Internet enabled technologies. Wal-Mart owned the largest and most sophisticated computer system in the private sector. The company used Massively Parallel Processor (MPP) computer system to track the movement of goods and stock levels. All information related to sales and inventories was passed on through an advanced satellite communication system. To provide back-up in case of a major breakdown or service interruption, the company had an extensive contingency plan. By making effective use of computers in all its company’s operations, Wal-Mart was successful in providing uninterrupted service to its customers, suppliers, stockholders and trading partners.

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walmart inventory management case study

Walmart Supply Chain: Building a Successful Integrated Supply Chain for Sustainable Competitive Advantage

  • Case Studies

Introduction

The global business landscape has witnessed an increasingly fierce competition, pushing companies to seek effective strategies to maintain and enhance their competitiveness. Among these strategies, the role of supply chain capability stands out as a key factor in driving success. A well-optimized supply chain not only ensures efficient delivery and cost-effectiveness but also provides companies with a competitive advantage in the market. In this context, Walmart, the world’s largest retailer, has demonstrated a highly successful and integrated Walmart supply chain, propelling its growth and dominance in the retail industry.

This case study aims to delve into the significance of supply chain capability for enhancing a company’s competitiveness and how it serves as a competitive advantage for companies. Additionally, we will explore the imperative need for supply chain redesign in the global economy to adapt to the challenges of the modern era of globalization. Focusing on Walmart’s exemplary supply chain practices, the purpose of this case study is to analyze the features of its successful integrated supply chain while identifying relevant issues in the context of the current globalized market.

[Read More: Rivian: Navigating Supply Chain and Operational Challenges and Embracing Growth ]

Walmart’s Supply Chain: Integrated Supply Chain Success

Data-driven success factors.

In the realm of modern supply chain management, data-driven strategies play a pivotal role in enhancing a company’s competitiveness. Walmart’s remarkable success as the world’s largest retailer can be attributed to its astute utilization of data analysis and advanced technologies within its integrated supply chain. This section delves into the key data-driven success factors that have propelled Walmart’s supply chain to the forefront of the retail industry.

[Read More: ERP Master Data: A Guide to Improve Quality & Governance ]

Role of Data Analysis through Barcode Scanning and Point-of-Sale Systems

Data analysis is at the core of Walmart’s supply chain prowess. The company has implemented sophisticated barcode scanning and point-of-sale systems to collect real-time data from its stores. By employing these technologies, Walmart gains valuable insights into customer buying behavior, sales trends, and inventory levels. The ability to analyze this data enables the retail giant to make informed decisions on product procurement, inventory management, and demand forecasting.

Efficient Supply Chain Practices: Automated Distribution Centers and Computerized Inventory Systems

Automation is a key component of Walmart’s efficient supply chain practices. The company has strategically invested in automated distribution centers, streamlining the flow of products from manufacturers to stores. These automated facilities not only optimize the handling and movement of goods but also enable faster order fulfillment and replenishment. Additionally, computerized inventory systems provide Walmart with accurate and up-to-date information about stock levels, allowing for precise inventory control and reducing the risk of stockouts or excess inventory.

walmart inventory management case study

Utilizing Walmart’s Own Trucking System and Cross-Docking Logistics

Another critical factor contributing to Walmart’s supply chain success is the utilization of its private trucking system and cross-docking logistics. By maintaining its own trucking fleet, Walmart gains greater control over transportation and delivery schedules, leading to improved efficiency and timely product replenishment. Furthermore, the adoption of cross-docking logistics techniques has enabled Walmart to minimize the need for intermediate storage, leading to reduced handling costs and faster product movement through the supply chain.

[Read More: The Ultimate Guide to Contract Logistics: What You Need to Know ]

Information Technologies Driving Efficiency

In Walmart’s journey towards becoming a global leader, information technologies have played a pivotal role in driving efficiency within the integrated Walmart supply chain. The retail giant has strategically adopted various IT initiatives to optimize its operations, enhance collaboration with suppliers, and achieve real-time inventory targeting. These technologies have contributed significantly to Walmart’s supply chain success, allowing them to maintain a competitive edge in the retail industry.

Supply Chain Digitalization Assessment

Collaborative Planning, Forecasting, and Replenishment (CPFR)

One of the key information technologies that have bolstered Walmart’s supply chain efficiency is the implementation of Collaborative Planning, Forecasting, and Replenishment (CPFR). This system facilitates seamless communication and coordination between Walmart and its supply chain partners, including suppliers and distributors. By sharing real-time sales data and demand information, CPFR enables accurate forecasting and demand planning, minimizing information distortion, and promoting synchronized inventory replenishment. The CPFR program has been instrumental in enhancing overall supply chain visibility and efficiency, allowing Walmart to respond promptly to fluctuations in demand and supply, reducing stockouts, and optimizing inventory levels.

Vendor-Managed Inventory (VMI) and Its Benefits

Walmart’s adoption of Vendor-Managed Inventory (VMI) has been another critical information technology-driven initiative. Through VMI, Walmart empowers its suppliers to take on the responsibility of managing their inventory stored in Walmart’s warehouses. By granting suppliers access to real-time inventory data and sales information, Walmart facilitates efficient inventory tracking and replenishment. This hands-on approach by suppliers results in streamlined inventory management, reduced delays in replenishment, and lower stockouts. The VMI model has proved particularly advantageous for Walmart due to its vast product range and numerous suppliers, making inventory management complex and costly if managed solely by the retailer.

[Read More: Vendor Managed Inventory: A Comprehensive Guide ]

Leveraging RFID Technology for Real-Time Inventory Targeting

RFID (Radio Frequency Identification) technology has been a game-changer in Walmart’s pursuit of real-time inventory targeting and enhanced supply chain visibility. By employing RFID tags on products, Walmart can track the movement of inventory throughout the supply chain in real-time. RFID enables accurate and automated inventory tracking, reducing the need for manual counting and minimizing errors in inventory management. The technology also provides crucial details, such as production time, location, and expiry dates of goods, allowing for efficient inventory targeting and better control over inventory turnover. RFID technology has been instrumental in Walmart’s cost reduction efforts, ensuring optimal stock levels while avoiding overstocking and unnecessary inventory holding costs.

Achieving Competitive Advantage through Strategy

Walmart’s competitive strategy: “everyday low prices” (edlp).

Walmart’s competitive advantage is deeply rooted in its strategic focus on offering “Everyday Low Prices” (EDLP) to its customers. The EDLP strategy revolves around providing high-quality products and services at the lowest possible prices, ensuring that customers can benefit from affordable prices every day. This approach sets Walmart apart from its competitors and has been instrumental in establishing the company as a dominant force in the retail industry.

Implementing the “Everyday Low Costs” (EDLC) Policy through Direct Procurement

To support its EDLP strategy, Walmart follows an “Everyday Low Costs” (EDLC) policy in its supply chain management. One of the key elements of the EDLC policy is the direct procurement of items from suppliers, eliminating intermediaries in the process. By procuring directly from manufacturers, Walmart can negotiate and understand their cost structure, enabling them to make informed purchasing decisions and obtain the best prices for their products.

Walmart’s emphasis on direct procurement is further bolstered by the use of technology and information systems. The company has implemented a central database, store-level point-of-sale systems, and a satellite network, along with barcodes and RFID technology as previously mentioned. These technologies allow Walmart to gather and analyze real-time store-level information, including sales data and external factors like weather forecasts, to enhance the accuracy of purchasing predictions. This integration of information technology helps Walmart optimize its procurement process and maintain low costs throughout the supply chain.

Utilizing Information Systems for Better Inventory Management

Effective inventory management is critical for Walmart to sustain its competitive advantage through the EDLP strategy. The company relies on information systems and information technology (IT) capabilities to control inventory levels efficiently. By capturing customers’ demand information, Walmart can identify popular products and stock them adequately, leading to an overall reduction in inventory.

One notable example of Walmart’s successful utilization of information systems is its collaboration with Procter & Gamble (P&G) through the Collaborative Planning, Forecasting, and Replenishment (CPFR) program. This program links all computers of P&G to Walmart’s stores and warehouses, allowing for efficient replenishment orders based on real-time inventory needs. Additionally, Walmart’s Retail Link , developed in the early 1990s, serves as another vital IT application for storing data, sharing it with vendors, and aiding in shipment routing assignments.

walmart inventory management case study

Challenges and Opportunities

Supplier cooperation and collaboration.

Walmart’s supply chain success can be attributed to its strong relationships with suppliers, but achieving and maintaining supplier cooperation and collaboration is not without challenges. Let’s explore the challenges and opportunities in this area:

Challenges in Obtaining Suppliers’ Cooperation

  • Supplier Resistance to Direct Procurement: Walmart follows an “Everyday Low Costs” (EDLC) policy by directly procuring items from suppliers, eliminating intermediaries. However, some suppliers may be reluctant to cooperate with this approach as it can disrupt existing distribution channels and potentially reduce their bargaining power.
  • Complex Supplier Networks: With thousands of suppliers across various product categories, managing diverse supplier networks can be challenging. Each supplier may have different production and delivery schedules, making coordination difficult.
  • Balancing Profit Margins: As Walmart emphasizes low prices, maintaining a balance between cost savings and ensuring suppliers’ profitability can be a delicate task. Suppliers may resist pressure to reduce prices further to maintain their margins.

Opportunities for Enhanced Supplier Cooperation and Collaboration

  • Establishing Transparent Communication Channels: Walmart can create transparent and open communication channels with its suppliers to foster better cooperation. Clear communication regarding demand forecasts, inventory levels, and potential disruptions can help suppliers plan their production and deliveries more efficiently.
  • Supplier Incentive Programs: Introducing incentive programs that reward suppliers for meeting certain performance metrics, such as on-time delivery or cost reduction, can motivate suppliers to actively collaborate and improve their supply chain capabilities.
  • Collaborative Planning, Forecasting, and Replenishment (CPFR): Walmart can leverage technology, such as CPFR, to share real-time sales data and demand forecasts with its suppliers. This collaborative approach allows suppliers to align their production and inventory management with actual market demand, reducing the bullwhip effect and optimizing the supply chain.
  • Sharing Inventory Visibility: Providing suppliers with access to inventory data, including stock levels and sales information, can help them plan production and deliveries more effectively. This visibility can prevent stockouts and overstocking issues.
  • Long-term Partnerships: Building long-term strategic partnerships with key suppliers can create a sense of mutual commitment and trust. By assuring consistent business over an extended period, Walmart can foster stronger relationships and supplier loyalty.

[Read More: 3 Types of Supplier Segmentation Matrix You Can Use to Classify Suppliers ]

Importance of Collaboration to Enhance Supply Chain Efficiency

  • Reducing Lead Times: Effective collaboration with suppliers can help shorten lead times by streamlining production and transportation processes. Faster lead times enables Walmart to respond quickly to changes in demand, reducing the risk of stockouts.
  • Efficient Inventory Management: Collaborative efforts with suppliers enable better inventory planning and management. Suppliers can adjust production based on actual demand, reducing excess inventory and associated costs.
  • Supply Chain Flexibility: Collaboration fosters agility and adaptability in the supply chain. When Walmart and its suppliers work together closely, they can quickly adjust to market changes, supply disruptions, or new opportunities.
  • Cost Reduction: Improved supplier collaboration can lead to cost-saving opportunities. By eliminating unnecessary intermediaries and optimizing production and transportation, overall supply chain costs can be minimized.

walmart inventory management case study

The Incentives Alignment Issue

In any supply chain, maintaining a balance of profit margins among different parties is essential for efficient collaboration and sustained success. However, achieving incentives alignment can be challenging, and this issue is particularly relevant in the case of Walmart supply chain. Addressing misalignment of interests between Walmart and its suppliers is crucial for optimizing the overall performance of the supply chain and ensuring long-term success. The following points highlight the incentives alignment issue faced by Walmart:

1. Balancing Profit Margins Among Different Supply Chain Parties:

Walmart’s success is attributed to its ability to offer high-quality products and services at the lowest affordable prices. To achieve this, Walmart employs various cost-cutting strategies, such as direct procurement from suppliers and streamlined distribution practices. While these strategies help Walmart maintain competitive prices, they can create challenges for suppliers who may face pressure to lower their own profit margins to meet Walmart’s demands. This misalignment of profit margins can lead to strained relationships and potentially impact the overall efficiency of the supply chain.

2. Misalignment of Interests Between Walmart and Suppliers:

Walmart’s size and market dominance can lead to power imbalances in supplier relationships. Suppliers may feel compelled to comply with Walmart’s demands to maintain access to its large customer base. However, this can lead to situations where suppliers may not have enough leverage to negotiate favorable terms, impacting their own profitability. As a result, suppliers may be less inclined to invest in innovations or improvements that would benefit the supply chain as a whole.

3. Conflict Between Inventory Growth and Sales Growth:

Walmart faced inventory growth issues in the past, with the inventory growth rate outpacing the sales growth rate. This can be indicative of conflicting incentives between Walmart and its suppliers. Suppliers may prioritize producing and delivering more inventory to ensure they meet Walmart’s demands, even if the sales growth does not keep up with the increased inventory. This misalignment can lead to excess inventory, increased carrying costs, and potential stockouts.

4. The Need for a New Triple-A Supply Chain:

Addressing the incentives alignment issue requires a fundamental shift in the supply chain strategy. Lee (2004) proposed the concept of a new Triple-A supply chain for Walmart and other companies in the 21st century. The Triple-A supply chain emphasizes agility, adaptability, and alignment to create a sustainable competitive advantage. Achieving alignment among all participating parties is crucial to optimize supply chain performance and ensure that risks and rewards are distributed fairly.

The Triple-A Supply Chain Approach

In today’s competitive business landscape, companies like Walmart recognize that a successful supply chain is not just about having a fast and cost-effective system. To maintain a sustainable competitive advantage and address the challenges of the global economy, it is essential to redesign supply chains that incorporate agility, adaptability, and alignment. This section explores the concept of the Triple-A Supply Chain Approach, which emphasizes these three key qualities that an ideal supply chain should possess: agility, adaptability, and alignment of interests among all participating parties.

The Three Qualities of an Ideal Supply Chain

Agility for quick and cost-effective responses:.

Agility refers to a supply chain’s ability to respond quickly and cost-effectively to sudden changes in demand, supply, and external disruptions. In the fast-paced business environment, companies must be able to adapt swiftly to fluctuations in customer preferences, market conditions, and unforeseen events. For Walmart, agility has been a critical factor in maintaining its leadership position in the retail industry. The company’s investments in technology and supply chain optimization strategies have allowed them to optimize inventory levels and respond rapidly to changing customer demands, ensuring the availability of products while minimizing inventory costs.

Adaptability to Handle Changes in Demand and Supply:

Supply chains should be adaptable and flexible enough to handle variations in demand and supply patterns. Demand forecasts can be uncertain, and unexpected supply chain disruptions may occur, making adaptability a vital quality. Walmart’s focus on omnichannel and various fulfillment options, such as in-store pickup and ship from store, demonstrates their commitment to adaptability. By utilizing multiple channels, Walmart can cater to diverse customer preferences, ensuring an uninterrupted flow of products to meet demand.

Alignment of Interests among All Participating Parties:

One of the significant challenges in supply chain management is ensuring alignment of interests among all parties involved, including suppliers, manufacturers, distributors, and retailers. Walmart’s scale and dominance in the retail market have allowed them to establish strong relationships with vendors, enabling strategic partnerships with vendors who can meet their high-volume demands. Additionally, Walmart’s adoption of Vendor Managed Inventory (VMI) allows suppliers to manage their own inventory stored in Walmart’s warehouses. This collaboration aligns the incentives of suppliers and Walmart, streamlining inventory management and ensuring timely replenishment.

walmart inventory management case study

In conclusion, Walmart’s integrated supply chain has been a crucial factor in the company’s global dominance and sustained competitive advantage. By strategically investing in technology and optimizing its supply chain, Walmart has managed to maintain its position as the world’s largest retailer with over $572 billion in revenue in 2022.

Walmart’s success serves as a compelling example of the importance of a well-integrated supply chain in achieving and sustaining competitive advantage in the global market. As businesses continue to navigate the complexities of the 21st-century economy, building and enhancing supply chain capabilities will remain a critical aspect of ensuring sustainable growth and profitability. By prioritizing agility, adaptability, and alignment, companies can follow in Walmart’s footsteps and position themselves for continued success in the dynamic and ever-evolving global marketplace.

References:

  • Lee H.L. (2004): The triple A supply chain. “Harvard Business Review”, Vol. 82, No. 10, pp. 102-112. 
  • Nguyen T.T.H. (2017): Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century. “Journal of Economics and Management”, Vol. 29(3), pp. 102-117

About the Author – Dr. Muddassir Ahmed

Dr. Muddassir Ahmed is the Founder & CEO of SCMDOJO. He is a global speaker , vlogger , and supply chain industry expert with 19 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East, and South East Asia in various Supply Chain leadership roles. Dr. Muddassir has received a PhD in Management Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and has founded the leading supply chain platform SCMDOJO to enable supply chain professionals and supply chain teams to thrive by providing best-in-class knowledge content, tools, and access to experts. You can follow him on  LinkedIn ,  Facebook ,  Twitter  or  Instagram.

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Decking the aisles with data: How Walmart's AI-powered inventory system brightens the holidays

walmart inventory management case study

Parvez Musani

Sr. Vice President, E2E Fulfillment

Oct. 25, 2023

A customer wearing a black blouse and grey jacket pushing a shopping cart and admiring the Christmas tree decorations in the Christmas tree section at a Walmart store

Empowered by our artificial intelligence (AI)-and-machine learning (ML)-driven inventory management systems, Walmart is primed to deliver one of the most seamless and gratifying holiday shopping experiences for our customers. From sought-after gifts and festive decor to delectable treats, our customers and members can be confident in finding the perfect items to make their holiday season merry and bright.

Our AI-powered inventory management system is essential for supplying customers with what they need, when they need it, and at the low costs they expect from Walmart. By leveraging historical data and pairing it with predictive analytics, we’re able to strategically place holiday items across distribution and fulfillment centers, and stores, optimizing the entire shopping experience. This data management system, along with investments in our supply chain—including automated facilities, department-ready freight, Next-Gen fulfillment centers, and store-based fulfillment—combined with in-store technology used by our associates and our massive last-mile delivery network, also ensures the efficient delivery of items. Our system is more powerful because it integrates insights from all the channels we use to serve customers. As an omni-channel retailer, we analyze both physical and digital sales to deliver our customers with an easy shopping experience over the holidays and beyond.

Combining decades of customer service and holiday inventory management with AI insights

Walmart has helped customers and members celebrate the holidays for more than 60 years by continually advancing our inventory management processes to ensure customers can find everything from coveted gifts to festive treats. In recent years, we have tested and integrated AI/ML models into our systems, complementing our use of historical data to guide the flow of holiday items through our supply chain. Today, our AI/ML engines are  primed to offer even deeper insights and we expect our performance will be stronger than ever.

When building AI/ML frameworks for holidays, we start with a foundation of data and business constraints to create a possible universe of Machine Learning models. During model training, we fine-tune machine-learning models using historical data like past sales, as well as online searches and page views.

We also consider ‘future data’ such as macroweather patterns, macroeconomic trends and local demographics to anticipate demand and potential fulfillment disruptions. With this combined data, our engines identify and correct discrepancies, inefficiencies, or inaccuracies in supply chain models. By the time our customers are ready to shop, our AI/ML data has already completed the heavy lifting to improve inventory flow.

Inventory management depicted through a set of graphics overlayed on a picture of an aisle at a Sam’s Club store. The graphic shows the store layout and mentions the names of a few products.

Leveraging a patent-pending capability

While predicting consumer behavior is possible, unforeseen events and their impact on typical purchasing patterns can create added challenges.

However, we do not always want to apply anomalies like a once-in-a-lifetime snowstorm in Florida to our future inventory management process. Instead, our software aims to display demand as closely as possible to historical consumer tendencies and adjustments.

What makes our AI/ML engines so powerful is that they can ‘forget’ such anomalies so that we are not carrying over one-time deviations into future inventory management practices. This will be the first year this capability has been used to help deliver for our customers during the holiday season. 

AI is ‘always on’ and ready to distribute, supply and deliver

Whether customers are shopping in stores, online or using the app, Walmart is able to provide them with the holiday supplies they need, within their reach. Our inventory management systems connect to our 4,700 stores, fulfillment centers, distribution centers and our suppliers. Every interaction and step of the way is measured, captured and used to further train our AI models and machine learning engines.

Our AI-driven systems leverage a variety of factors to determine both quantity and timing of inventory flow, as well as more precisely identify where we distribute. With greater accuracy in our geographic distribution zones, we can understand our customers’ demands down to differentiations by zip codes. For customers enjoying at-home delivery, our systems are optimizing Spark delivery routes to save time from the moment of purchase to their front door.

With state-of-the-art learning systems, we are also adding inputs to help adjust for regional differences in needs, cultures, and buying habits. For example, we will always make sure that pool toys are available in the sunny states, and warmer sweaters are stocked in colder states. Our engines are always learning, so we can optimize, increase demand or reposition inventory to higher selling regions. For instance, if a toy isn’t selling well on the East Coast but is hot in the Midwest, we can reposition inventory or divert the demand. 

Empowering our associates with industry-leading analytics

At Walmart, we are people-led and tech-powered. While our AI-driven inventory systems can offer recommendations, the associate is ultimately in charge. Nobody, and no robot, can replicate the intuition of our associates gained over their careers. Our associates’ feedback is a critical part of the tuning and training process that drives our continued innovation.

As we embrace another holiday season, our associates nationwide have been working tirelessly to deliver exceptional holiday shopping experiences. With our powerful AI-driven inventory system, customers can rely on us to deliver great experiences and savings all season long.

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SellerApp Blog

What makes Walmart Inventory Management unique from other e-commerce platforms

Importance of Walmart inventory management

Jeniffer Alexander

If you’re an  e-commerce business  owner, you are likely familiar with Walmart, the world’s largest retailer. With its massive reach and influence in the market, chances are that your business may have had some dealings with this retail giant. 

However, you might not be aware that Walmart operates on a distinctive inventory system, setting it apart from the practices commonly employed by most marketplace giants.

In this blog post, we aim to offer a comprehensive overview of Walmart’s distinctive inventory system, providing you with valuable insights. 

Here’s a sneak peek into the article

What is inventory management in e-commerce?

Importance of walmart inventory management, how does walmart’s inventory system work, walmart’s vendor-managed inventory model, different types of inventory at walmart and their functions.

  • How Walmart measures inventory performance
  • Walmart inventory management strategies for an effective supply chain
  • Benefits of Walmart’s inventory management system

Inventory management is the biggest asset of any  retail business , and you should treat it like one.

encompassing storage, sourcing , and selling of products. It serves as the backbone of efficient operations and plays a crucial role in preventing wastage and saving both time and money.

Whether your business is small or large, understanding how to effectively manage your inventory is essential. Implementing a robust inventory management system can significantly  increase efficiency  and  reduce operational costs , providing your business with a valuable source of leverage.

Inventory management is a crucial aspect of any business, yet many companies, even major ones, still face challenges in this area. These struggles can sometimes lead to disastrous consequences and even the collapse of a firm. To avoid such pitfalls, you should invest in a proper inventory management system to ensure your products consistently remain at the forefront of the  supply chain .

There’s no one size fits all approach in inventory management. Depending on your business model and requirements, you can use ABC analysis, JIT (Just-in-time) inventory,  Dropshipping , or First in First out (FIFO) approaches to manage your inventory. Strategies such help you avoid overstocking and understocking issues, plan for unexpected demand surges, and effectively manage the supply chain.  

Walmart’s inventory management holds immense significance in the retail giant’s operations and overall success. As one of the world’s largest retailers, Walmart deals with a vast array of products and serves a massive customer base. Efficient inventory management is the backbone of its supply chain, enabling the company to oversee and control various aspects, including raw materials, finished goods,  warehousing , and storage.

One of the primary goals of Walmart’s inventory management is to ensure that products reach distributors and stores promptly and efficiently. 

By carefully tracking inventory levels and demand patterns, the company can minimize the risk of stockouts, where products are unavailable when customers want to purchase them. This proactive approach to inventory management ensures that customers find the products they need when they walk into a Walmart store or shop online, enhancing customer satisfaction and loyalty.

Moreover, Walmart’s inventory management is geared towards striking a delicate balance in stock levels. Excessive stock ties up valuable capital and storage space, while insufficient stock can lead to lost sales opportunities and dissatisfied customers. By avoiding both overstocking and understocking, Walmart can optimize costs, improve profitability, and maintain a healthy inventory turnover ratio. This careful balance allows the company to stay agile and responsive to changing market demands.

Accurate inventory records are essential for any retailer, and Walmart is no exception. By maintaining precise inventory data, Walmart can optimize its operational efficiency. This includes planning staffing levels to meet customer demand, managing storage space effectively, and ensuring that the supply chain runs smoothly. 

Real-time visibility into inventory levels across Walmart’s vast network of stores and distribution centers empowers the company to make data-driven decisions, optimizing product offerings,  pricing strategies , and stock allocations.

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Walmart’s inventory system is a sophisticated and highly efficient platform that plays a crucial role in the company’s supply chain management. The system is designed to facilitate seamless coordination between Walmart and its suppliers, ensuring a constant flow of products to meet customer demands. 

Here’s how Walmart’s inventory system works:

Real-Time Updates:

The system constantly updates information about how much of each product is available. So, when you buy something from Walmart, the system immediately knows and adjusts the inventory accordingly.

Supplier Collaboration:

Walmart works closely with the companies that supply them with products. These suppliers use the system to know when their products are running low in Walmart’s stores. They then send more of those products to Walmart to keep the shelves stocked.

Avoiding Stockouts:

The system helps Walmart avoid running out of popular products . When the inventory of a product gets low, the system alerts the supplier, who quickly sends more to Walmart. This way, you’re more likely to find what you need when you go shopping.

Cost Savings:

By using this smart system, Walmart can reduce unnecessary costs. Suppliers take care of managing their products’ inventory levels, which means Walmart doesn’t have to keep too much stock on hand.

Happy Customers:

Because the system keeps products available and reduces stockouts, customers have a better shopping experience. You can find the things you want, and Walmart can offer competitive prices.

Thus, Walmart’s inventory system helps them and their suppliers work together smoothly, making sure products are available when you need them, keeping costs down, and ensuring happy customers.

One of the key factors behind Walmart’s successful inventory management is its vendor-managed inventory model. In this system, suppliers play a proactive role in managing their products’ stock levels at Walmart stores. They use Walmart’s information systems to access real-time data on inventory levels and decide when to send more goods to the company.

With this approach, some of the inventory control responsibilities are transferred to the suppliers. They have direct access to Walmart’s inventory data, allowing them to better monitor and manage their products’ availability in stores. This collaboration between Walmart and its suppliers helps minimize delays in the supply chain, ensuring products reach the stores efficiently.

The vendor-managed inventory model benefits both Walmart and its suppliers. For Walmart, it leads to reduced inventory management costs as suppliers take on the responsibility of managing their goods. This means Walmart doesn’t need to hire additional staff to handle each supplier’s inventory. Instead, the costs are directly borne by the suppliers.

Recommended read: Amazon Review Software Tools to Increase Sales .

Walmart employs a diverse range of inventory types to efficiently manage its vast retail operations. Among the most important inventory categories are:

Finished Good Inventory

This is the backbone of  Walmart’s business . It comprises the finished products that arrive at Walmart’s retail locations, where they are stored and regularly replenished. The main purpose of this inventory is to support the smooth operation of Walmart’s stores, ensuring that products are readily available for customers. These finished goods are moved from Walmart’s merchandise distribution centers to the store shelves for sale to retail buyers.

Transit Inventory

As Walmart’s supply chain spans globally, transit inventory plays a significant role in supporting its retail operations. This inventory category refers to goods that are in transit, often for days or weeks, as they move through the supply chain. The purpose of transit inventory is to aid in replenishing finished goods inventory at merchandise distribution centers and Walmart stores, ensuring a steady flow of products to meet customer demand.

Buffer Inventory

Walmart utilizes buffer inventory at its stores, maintaining a small surplus of goods on hand. This extra stock serves as a safeguard against unexpected fluctuations in demand. The purpose of buffer inventory is to ensure business continuity and accommodate sudden increases in customer demand, as retail market prediction models may not always perfectly anticipate such fluctuations.

Anticipation Inventory

Based on seasonal changes and market data, anticipation inventory is employed by Walmart to meet specific periods of heightened demand. For instance, Walmart significantly increases its inventory size before and during events like  Black Friday , Christmas, and long holiday weekends. This inventory type allows the company to proactively address expected seasonal spikes in customer demand and ensure sufficient stock availability during these  special shopping periods .

Through strategic management of these various inventory types, Walmart maintains a responsive and efficient supply chain. That also guarantees well-stocked stores to meet customer demands consistently.

How does Walmart measure inventory performance?

Given the vast scale and diverse product range of Walmart’s business, the company employs several key variables to gauge inventory performance. 

Some of the most important measures used by Walmart are:

Inventory Turnover

The turnover of inventories, also known as inventory turnover rate, is a crucial metric used by Walmart to assess how quickly its product inventory is sold out and replenished. It measures the frequency with which items are sold and replaced within a specific period, typically a year. A higher turnover rate indicates that products are moving off the shelves swiftly, reducing the time items spend in inventory.

Walmart aims for a high inventory turnover rate as it signifies efficient sales and restocking processes. This approach aligns with the company’s cost leadership strategy, which emphasizes cost minimization and operational efficiency. By turning over inventory rapidly, Walmart reduces holding costs, such as storage and carrying expenses and can pass on cost savings to customers through competitive pricing.

Stock-out Rate

The rate of stock-outs is another vital variable Walmart closely monitors. A stock-out occurs when the available inventory is insufficient to meet customer demand for a particular product. For a retailer like Walmart, avoiding stock-outs is essential to provide a positive customer experience and maintain customer loyalty.

Walmart strives to minimize stock-outs to ensure that customers can find the products they need when visiting their stores. Through effective inventory management and close collaboration with suppliers, Walmart endeavors to maintain optimal inventory levels and respond promptly to changes in demand. By minimizing stock-outs, Walmart can enhance customer satisfaction and retention.

Inventory Size

The size of the inventory refers to the total quantity of products held by Walmart at any given time. Walmart carefully manages the size of its inventory to strike a balance between meeting customer demand and minimizing holding costs. A larger inventory may provide a wider selection for customers, but it can lead to higher storage and handling expenses.

With the help of inventory size, Walmart can maintain a responsive supply chain, ensure product availability, and uphold its commitment to offering customers a broad range of products at competitive prices. 

Walmart inventory management strategies for an effective supply chain 

Walmart employs effective strategies to manage its inventory across its extensive supply chain. 

Here are the key approaches they use:

ABC Analysis

Walmart categorizes its inventory into three groups based on its significance. Category A items include finished goods and operational equipment, which are closely monitored and recorded. Category B items consist of supplies and materials used for operations, receiving moderate monitoring and recording. On the other hand, Category C involves the least monitored and recorded inventory items, like janitorial and office supplies, with minimal impact on daily retail operations. This categorization helps Walmart prioritize and efficiently manage its inventory based on its importance.

Integrated Information Systems

Walmart’s integrated information systems support its global retail operations and e-commerce. These systems are utilized throughout the organization and play a vital role in inventory management. Walmart provides its suppliers with access to their product inventory data through these systems, supporting its vendor-managed inventory model. This enables a collaborative approach where suppliers actively manage their products’ stock levels in Walmart’s stores and distribution centers.

Bullwhip Effect Management

The bullwhip effect, where errors amplify throughout the supply chain, can harm Walmart’s operations and increase costs. To minimize this effect, Walmart employs a vendor-managed inventory model. By allowing suppliers direct access to their data, Walmart reduces the involvement of company personnel in errors associated with moving goods from suppliers to stores. This fosters a more efficient and error-resistant supply chain.

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Benefits of Walmart Inventory Management System – Benefits

In addition to providing excellent services for eCommerce businesses, Walmart and other 3PLs primarily focus on their interests. 

As a business owner, the  return on investment  (ROI) of your business investments is crucial, and tracking inventory costs and supply chain requirements are a must.

To efficiently manage inventory and streamline operations, businesses often need an external system that complements the Walmart ecosystem. The Walmart inventory management software is designed to track all aspects of a business’s inventory, from supplier management to  product shipping . 

This system offers several tangible features and benefits:

Utilizing Multiple Data Aggregation Channels

A successful business strategy involves selling products through various channels, not limited to just Walmart. Retailers can leverage physical locations, customizable storefronts like Shopify, and reputable marketplaces like Etsy and eBay. Relying solely on Walmart may not be ideal due to higher fees for slow-moving items and seasonal storage. An efficient inventory management system can consolidate all inventory data into a single dashboard, simplifying operations and eliminating the need for multiple logins.

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Implementing a Robust SKU System

Maintaining an organized product tracking system is crucial for a multichannel strategy . With a Walmart inventory management app, businesses can easily create unique SKUs for each product, incorporating essential details like attributes, manufacturing dates, locations, and lot numbers. The ability to generate and print barcodes further streamlines replenishing Walmart’s inventory.

Generating Comprehensive Reports

As businesses diversify their sales channels, reconciling reports from various storefronts becomes essential but time-consuming. To ensure a positive return on investment (ROI), having access to comprehensive reports is crucial.  Walmart’s fulfillment services  (WFS) offer helpful reports, such as the Replenishment Report, aiding in effective inventory management. These reports facilitate sales forecasting , reorder point establishment, and determining optimal order quantities.

By embracing these strategies, businesses can efficiently manage inventory across multiple channels, optimize their operations, and make informed decisions to enhance overall performance and customer satisfaction.

Walmart’s inventory management practices play a pivotal role in the success of the retail giant. Through a combination of strategic approaches, advanced information systems, and efficient supply chain management, Walmart has set a high standard for inventory control and optimization.

As a beacon of effective inventory management, Walmart’s practices serve as a valuable example for businesses aspiring to optimize their inventory control and achieve long-term success in the dynamic world of retail.

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Walmart’s Supply Chain: A Detailed Look at How They Manage It

Sam Walton said, “People think we got big by putting big stores in small towns. Really we got big by replacing inventory with information.” It is information, and especially information sharing, that lets Walmart constantly increase efficiency at every step, from replenishment planning and production to shipping, distribution, delivery, and stocking.

Studying the nuts and bolts of how Walmart uses information—data—to make that happen can help shippers and other retailers optimize their supply chains with digital data sharing.

Walmart is big, racking up $555 billion in sales in fiscal 2021, so it can seem like a behemoth with no lessons for the rest of us. But we can learn valuable lessons from Walmart’s focus on efficiency and automation, its nuanced approach to  supply chain  sustainability and social responsibility, and how digital data sharing underlies it all.

Size Matters

Walmart has 5,300-plus stores in the United States employing nearly 1.6 million people, and 5,100-odd stores in 23 other countries employing another 550,000.

These, together with Walmart’s family of e-commerce websites, are served by 210 distribution centers. Every one of them unloads and ships at least 200 trailers a day. They encompass at least 1 million square feet each—and 42 of them are U.S. regional distribution centers that dwarf the others.

Their shipping fleet musters 9,000 tractors and 80,000 trailers and drives more than 1 billion miles per year. Walmart even dealt with the Covid supply chain crunch of 2021 by chartering its own ships to unload at less-busy ports . Who can say the same?

Data Matters More

But Walmart succeeds and grows because of a relentless focus on efficiency and transparency in its supply chain, even in packing pallets and stocking shelves, as we shall see.

They continuously find ways to optimize their supply chain to control or reduce costs, and they never let up. Walmart believes that it’s that focus that underlies all their success and guarantees that, even as inflation and wages and other costs of doing business rise, Walmart continues to be the low-price leader.

Walmart’s policy is to offer Everyday Low Prices—lower than everyone else’s—year-round, instead of competing on price only during seasonal sales. Walmart can do that and still hit its margin targets because it is so successful in building visibility and transparency into every scrap of data in their supply chain.

Walmart Supply Chain: Visibility, Transparency and Collaboration

At Walmart, demand forecasting and inventory-level prediction are obsessions. Walmart was the first company in the world to use barcodes on 100% of its products, way back in 1983.

In 2015 alone it spent $10.5 billion on IT, a lot even for a company that booked $486 billion of revenue that year. And nothing has changed. In 2021, Walmart CFO Brett M. Biggs said, “From a position of great strength, we’re now going to accelerate investments in supply chain, technology, automation, and our associates.…we remain laser-focused on operating efficiency .”

Though not yet a 100% mandate, radio frequency identification (RFID) tags are encouraged for suppliers. These tags can be scanned from a distance with radio waves, so that pallets and boxes don’t have to be approached with a handheld laser scanner for their data to be captured and shared. In fact, pallets and boxes don’t even need to stop moving to be scanned; RFID tags can be read as they’re moving through a gate on a loading dock.

Making data sharing that easy provides a great benefit: Walmart products with RFID are replenished three times as fast as those that only carry barcodes, and out-of-stocks are down 16% since the company started using them.

But make no mistake: It isn’t gadgets, but rather Walmart’s transparency and visibility at every step of its supply chain that is the real secret of its success. The first step is perhaps the most radical: All of Walmart’s suppliers are responsible for their own replenishment planning, and the company gives each of them the tools and data to successfully manage the inventory levels of their own products in Walmart’s stores and  warehouses .

True Collaboration With Vendors and Suppliers

Walmart began dealing directly with the firms that produce its assortment in the 1980s, and found it profitable to cut out distributors in the middle. Over time, advances in IT made it possible to share so much timely data with vendors that the company could relieve itself of the cost of managing its own inventory.

The result is a digital vendor-managed inventory system called Retail Link® that gives suppliers access to real-time store-by-store point of sale data, whether they are making furniture in China or frozen food in California.

Analysts working for suppliers don’t just react to falling inventory levels, they forecast demand patterns—which are ultra-stable due to Walmart’s Everyday Low Prices policy of avoiding seasonal sales—and collaborate with other suppliers and with Walmart to decide when to ship products to Walmart distribution centers.

And benefits beyond avoiding out-of-stocks are made possible by the system’s openness and collaboration with suppliers. Walmart doesn’t drip-feed information to its suppliers, it opens its books to them.

A tool within Retail Link called Market Basket allows suppliers visibility into what products are routinely combined with their own in the same purchase. This gives vendors the opportunity to produce their own versions of those frequent companion products, or to ask Walmart to place their products where they’ll be seen by buyers of those companions.

No Wasted Time—or Space

Once a product is shipped, the vendor’s responsibility ends and Walmart takes charge. But the same data sharing and visibility, aided by satellite tracking, allows Walmart to precisely schedule just-in-time handling of goods as they are received.

Walmart coordinates each unloading of a supplier’s truck with the loading of an outbound Walmart truck at the same distribution center within about a day. This practice, known as cross-docking, minimizes both inventory carrying costs and the duration of the Walmart assortment’s journey from factory to customer.

Goods are only warehoused at the big box stores, which further minimizes the duration of a product’s journey to the customer. The stores are sized for the purpose both in area and in height; the towering upper shelves hold as much as or more inventory than the shelves that customers shop from.

In-store warehousing also allows for fewer and larger deliveries from distribution centers to stores, an efficiency that saves more than money. Filling trucks and minimizing miles traveled also reduces Walmart’s carbon footprint. This contributes to the company’s impressive gains in sustainability, as we’ll see below.

Data Enables Precision

Walmart’s mastery of real-time information allows it to mingle the very different assortments of products that are sold through its various channels. If you walk inside a Walmart store, you can lay your hands on fewer than 200,000 items immediately. But Walmart’s online storefronts offer millions of items, and Walmart wants to get those to you as quickly as possible.

They’re able to do so because 90% of Americans live within 10 miles of their stores, which are also their warehouses.

Omnichannel, Brought to You by Omniscience

Walmart combines e-commerce with its bricks and mortar stores in omnichannel retail. Keeping all the products straight, and keeping them moving on time, requires even greater precision and flexibility .

Accurate forecasting of what items in its online assortment will be wanted—and when they will be wanted—is needed for the right online-only products to be warehoused closest to customers.

Online sales were less than 10% of Walmart’s total sales in 2020 but they are rising, and so is the need for dedicated warehouse space for those online-only assortments.

To meet this growing need, Walmart is rolling out dozens of in-store or store-adjacent warehouses known as market fulfillment centers (MFCs), after building their first in New Hampshire in 2019.

Each MFC can dispatch deliveries either directly to customers or to nearby Walmart stores to fulfill store-pickup orders from the online assortment. And if your store-pickup order combines online-only items with products stocked on the store’s shelves, it will all be waiting for you in one neat pile when you get there.

That takes a lot of timely information sharing to accomplish, and Walmart is committed: it spent $11 billion in 2019–2021 on technology, e-commerce and its supply chain.

Data Increasingly Enables Automation

What’s more, Walmart spent $14 billion in 2021 on supply chain automation . This begins with automated warehouse management and control systems, which are software, and automated picking, sorting and putting systems, which are hardware.

The software handles inventory control of the bewilderingly large assortment of Walmart’s various online and in-store channels. It even forecasts labor needs to ensure that staffing levels exactly match the need for each shift, bringing in more hands when large deliveries and shipments are expected and keeping a smaller crew for quieter hours.

Because all the relevant data in Walmart warehouses is transparent and interoperable, that labor can be provided by machines as well as people. High-speed robots are already loading and moving pallets, and automated sortation equipment is sorting products along conveyers and chutes. These technologies, together with data sharing, underpin automated consolidation centers , the first of which opened in 2019 in Colton, California, with more to come.

At only 340,000 square feet, it receives, sorts and ships freight for all 42 of Walmart’s U.S. regional distribution centers (RDCs). It uses automated technology that triples throughput.

The status quo is for suppliers to manage 42 separate orders—one for each RDC—usually shipping them as soon as they are ready in trucks that are not full. Walmart consolidation centers always took less-than-truckload shipments and consolidated them in full truckloads, but everything was done by hand and, crucially, shipments were not received and counted until they arrived at the RDCs.

Demand Forecasting and Predictive Distribution

With the new system, suppliers fill only one order, instead of 42. This allows them to save money on order management and to dispatch fewer less-than-truckload shipments. More important to Walmart’s bottom line, all the container loads are scanned and counted as soon as they arrive at consolidation centers, upstream from the RDCs. The scanning and counting are done automatically on arrival.

This allows the entire system to adjust to the unexpected that much sooner. With complete visibility, the system can even respond to sudden shifts in regional demand, for example, due to a heat wave driving air-conditioner sales in certain states, and rebalance shipments to the various RDCs. As Geno Bell, Walmart’s senior director of its consolidation centers, put it, “With this new technology, we can be surgical and responsive in getting merchandise into stores.”

After the products have been received, counted and assigned to destinations, the automated warehouse management system is used to sort and separate the arrivals and load the products into new truckloads according to how they are stocked downstream, speeding and simplifying unloading at the destination.

Things get even more high-tech at the new automated RDCs, where high-speed palletizing robots unload and sort product. These tireless workers can use every inch of available warehouse space because they never lose track of where a product is stored, no matter how deep it is buried or how high it is stacked.

When it’s time to load it out, the robots retrieve the product and make up individual pallets designed for easy unloading at the other end. The new pallets are packed by how products are stocked in the destination stores, down to specific aisles, in a tour de force of precision and integration. Work on the first of these automated marvels began in 2017 in Brooksville, Florida. Now Walmart is rolling out the automated system to 25 of its 42 RDCs.

How Walmart Supply Chain is Sustainable

Walmart first focused on the sustainability and environmental, social and governance (ESG) aspects of its direct operations, making its first environmental sustainability pledge in 2005. Among its early targets were increasing the efficiency of its trucking fleet. In the years since, Walmart has committed to achieving zero waste in its U.S. and Canada operations by 2025, and to powering its global operations by 100% renewable energy by 2035.

Walmart was the single largest procurer of solar and wind power in the United States in 2019, and currently gets 36% of the electricity that it uses around the world from renewable sources.

Once its own sustainability journey was underway, Walmart expanded its efforts to the sustainability of its assortment and of its supply chains . It paid for expert advisors to work with its suppliers to help them reduce their greenhouse gas emissions, drawing on Walmart’s now-considerable experience in the field. And through Walmart’s Project Gigaton, it is offering a power-purchasing facility to its suppliers whereby they can pool their electricity purchases to bring massive new renewable energy projects onto the electric grid in very sunny and windy areas that will offset the power they use locally (all electrons being interchangeable).

Walmart’s efforts to increase its supply chain’s sustainability are extensive, but they focus on a few critical ESG issues including climate, waste and working conditions. Walmart clearly lays out its expectations of suppliers in regards to worker well-being in a Standards for Suppliers publication, and lets them know that they are expected to hold their own suppliers to the same standards. Walmart then actively monitors the areas that pose the highest risks, especially to worker dignity.

Accountability Begins With Reporting

When it comes to environmental sustainability, Walmart uses a mix of mandatory and voluntary mechanisms. Suppliers of some commodities, including coffee, cotton, palm oil, pulp and paper, and tuna, are required by Walmart to meet specific certification standards and to validate that they have done so.

These products can then carry a certification logo on their packaging, which Walmart sometimes draws attention to. For example, a sign on a shelf might alert customers to sustainable seafood that carries the Marine Stewardship Council logo.

Other ESG efforts among Walmart’s vendors are voluntary . For example, Project Gigaton , which aims to avoid 1 billion tons of greenhouse gases from Walmart’s supply chain by 2030, is a program that Walmart encourages its suppliers to participate in, but participation is not mandatory.

Upwards of 3,100 suppliers (out of more than 100,000 total) are taking part in this effort. As always, Walmart is obsessed with information sharing in the ESG arena, and suppliers who report to Walmart’s sustainability surveys account for 70% of Walmart’s net sales in the United States.

It All Begins With Digitization

We all aspire to succeed like Walmart, but no fleets of automated warehouse robots are coming to sort and pack aisle-ready pallets for the rest of us—and that’s okay. Every supply chain can realize serious efficiency gains through better data sharing. The road to Walmart-quality data, and real-time data sharing between supply chain partners, starts with making the entire shipping process digital.

A good end-to-end digital solution can capture all the information generated in a shipment’s lifecycle and make it immediately available to everyone concerned. Vector Software’s contactless solution is a good example.

A supplier’s bills of lading, pick sheets and anything else are sent by email or uploaded to Vector’s system and automatically ingested. When a carrier driver arrives for pick-up, a smartphone scan of a QR code checks the driver in, enters the driver’s info, and assigns a dock door.

From there, the system routes the shipment’s documents to the driver, shipping clerk, and security guard, who might use a smartphone to verify the container’s seal or temperature and add that information to the system. En route, the shipper and the carrier get real-time updates, including details of any overage, shortage, or damage.

Digitization speeds and eases every trip. But the real efficiencies come in because digitization is the crucial first step in leveling up a company’s data quality. Every shipment’s data is made completely visible. Any patterns that arise in the inevitable glitches and hitches are laid out where you can see them as they emerge and solve them promptly. And that gets you closer to using information like Sam Walton for a world-class supply chain.

Back to the Future

The future of Walmart’s Supply chain is sure to include more dazzling innovations, but the fundamentals of efficiency, visibility, and sustainability will remain. For instance, the company’s autonomous robots whizzing around inside its distribution centers may soon be picking and packing containers hauled by autonomous trucks.

Walmart is testing such vehicles to haul freight around their own yards and on public road networks. They are also experimenting with management systems to control and coordinate these autonomous vehicles.

Who knows what the future of Walmart’s supply chain will look like? But even if they someday deliver goods in flying cars, one thing is certain: The secret of Walmart’s success will always be information.

If you liked this article you might be interested in these too:

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Walmart’s Operations Management: 10 Strategic Decisions & Productivity

Walmart 10 decisions of operations management, strategic decision areas, productivity measures, retail business case study analysis

Walmart Inc.’s operations management involves a variety of approaches that are focused on managing the supply chain and inventory, as well as sales performance. The company’s success is significantly based on effective performance in retail operations management. Specifically, Walmart’s management covers all the 10 decision areas of operations management. These strategic decision areas pertain to the issues managers deal with on a daily basis as they optimize the e-commerce company’s operations. Walmart’s application of the 10 decisions of operations management reflects managers’ prioritization of business objectives. In turn, this prioritization shows the strategic significance of the different decision areas of operations management in the retail company’s business. This approach to operations aligns with Walmart’s corporate mission statement and corporate vision statement . The retail enterprise is a business case of how to achieve high efficiency in operations to ensure long-term growth and success in the global market.

The 10 decisions of operations management are effectively addressed in Walmart’s business through a combination of approaches that emphasize supply chain management, inventory management, and sales and marketing. This approach leads to strategies that strengthen the business against competitors, like Amazon and its subsidiary, Whole Foods , as well as Home Depot , eBay, Costco , Best Buy, Macy’s, Kroger, Alibaba, IKEA, Target, and Lowe’s.

The 10 Strategic Decision Areas of Operations Management at Walmart

1. Design of Goods and Services . This decision area of operations management involves the strategic characterization of the retail company’s products. In this case, the decision area covers Walmart’s goods and services. As a retailer, the company offers retail services. However, Walmart also has its own brands of goods, such as Great Value and Sam’s Choice. The company’s operations management addresses the design of retail service by emphasizing the variables of efficiency and cost-effectiveness. Walmart’s generic strategy for competitive advantage, and intensive growth strategies emphasize low costs and low selling prices. To fulfill these strategies, the firm focuses on maximum efficiency of its retail service operations. To address the design of goods in this decision area of operations management, Walmart emphasizes minimal production costs, especially for the Great Value brand. The firm’s consumer goods are designed in a way that they are easy to mass-produce. The strategic approach in this operations management area affects Walmart’s marketing mix or 4Ps and the corporation’s strategic planning for product development and retail service expansion.

2. Quality Management . Walmart approaches this decision area of operations management through three tiers of quality standards. The lowest tier specifies the minimum quality expectations of the majority of buyers. Walmart keeps this tier for most of its brands, such as Great Value. The middle tier specifies market average quality for low-cost retailers. This tier is used for some products, as well as for the job performance targets of Walmart employees, especially sales personnel. The highest tier specifies quality levels that exceed market averages in the retail industry. This tier is applied to only a minority of Walmart’s outputs, such as goods under the Sam’s Choice brand. This three-tier approach satisfies quality management objectives in the strategic decision areas of operations management throughout the retail business organization. Appropriate quality measures also contribute to the strengths identified in the SWOT analysis of Walmart Inc .

3. Process and Capacity Design . In this strategic decision area, Walmart’s operations management utilizes behavioral analysis, forecasting, and continuous monitoring. Behavioral analysis of customers and employees, such as in the brick-and-mortar stores and e-commerce operations, serves as basis for the company’s process and capacity design for optimizing space, personnel, and equipment. Forecasting is the basis for Walmart’s ever-changing capacity design for human resources. The company’s HR process and capacity design evolves as the retail business grows. Also, to satisfy concerns in this decision area of operations management, Walmart uses continuous monitoring of store capacities to inform corporate managers in keeping or changing current capacity designs.

4. Location Strategy . This decision area of operations management emphasizes efficiency of movement of materials, human resources, and business information throughout the retail organization. In this regard, Walmart’s location strategy includes stores located in or near urban centers and consumer population clusters. The company aims to maximize market reach and accessibility for consumers. Materials and goods are made available to Walmart’s employees and target customers through strategic warehouse locations. On the other hand, to address the business information aspect of this decision area of operations management, Walmart uses Internet technology and related computing systems and networks. The company has a comprehensive set of online information systems for real-time reports and monitoring that support managing individual retail stores as well as regional market operations.

5. Layout Design and Strategy . Walmart addresses this decision area of operations management by assessing shoppers’ and employees’ behaviors for the layout design of its brick-and-mortar stores, e-commerce websites, and warehouses or storage facilities. The layout design of the stores is based on consumer behavioral analysis and corporate standards. For example, Walmart’s placement of some goods in certain areas of its stores, such as near the entrance/exit, maximizes purchase likelihood. On the other hand, the layout design and strategy for the company’s warehouses are based on the need to rapidly move goods across the supply chain to the stores. Walmart’s warehouses maximize utilization and efficiency of space for the company’s trucks, suppliers’ trucks, and goods. With efficiency, cost-effectiveness, and cost-minimization, the retail company satisfies the needs in this strategic decision area of operations management.

6. Human Resources and Job Design . Walmart’s human resource management strategies involve continuous recruitment. The retail business suffers from relatively high turnover partly because of low wages, which relate to the cost-leadership generic strategy. Nonetheless, continuous recruitment addresses this strategic decision area of operations management, while maintaining Walmart’s organizational structure and corporate culture . Also, the company maintains standardized job processes, especially for positions in its stores. Walmart’s training programs support the need for standardization for the service quality standards of the business. Thus, the company satisfies concerns in this decision area of operations management despite high turnover.

7. Supply Chain Management . Walmart’s bargaining power over suppliers successfully addresses this decision area of operations management. The retailer’s supply chain is comprehensively integrated with advanced information technology, which enhances such bargaining power. For example, supply chain management information systems are directly linked to Walmart’s ability to minimize costs of operations. These systems enable managers and vendors to collaborate in deciding when to move certain amounts of merchandise across the supply chain. This condition utilizes business competitiveness with regard to competitive advantage, as shown in the Porter’s Five Forces analysis of Walmart Inc . As one of the biggest retailers in the world, the company wields its strong bargaining power to impose its demands on suppliers, as a way to address supply chain management issues in this strategic decision area of operations management. Nonetheless, considering Walmart’s stakeholders and corporate social responsibility strategy , the company balances business needs and the needs of suppliers, who are a major stakeholder group.

8. Inventory Management . In this decision area of operations management, Walmart focuses on the vendor-managed inventory model and just-in-time cross-docking. In the vendor-managed inventory model, suppliers access the company’s information systems to decide when to deliver goods based on real-time data on inventory levels. In this way, Walmart minimizes the problem of stockouts. On the other hand, in just-in-time cross-docking, the retail company minimizes the size of its inventory, thereby supporting cost-minimization efforts. These approaches help maximize the operational efficiency and performance of the retail business in this strategic decision area of operations management (See more: Walmart: Inventory Management ).

9. Scheduling . Walmart uses conventional shifts and flexible scheduling. In this decision area of operations management, the emphasis is on optimizing internal business process schedules to achieve higher efficiencies in the retail enterprise. Through optimized schedules, Walmart minimizes losses linked to overcapacity and related issues. Scheduling in the retailer’s warehouses is flexible and based on current trends. For example, based on Walmart’s approaches to inventory management and supply chain management, suppliers readily respond to changes in inventory levels. As a result, most of the company’s warehouse schedules are not fixed. On the other hand, Walmart store processes and human resources in sales and marketing use fixed conventional shifts for scheduling. Such fixed scheduling optimizes the retailer’s expenditure on human resources. However, to fully address scheduling as a strategic decision area of operations management, Walmart occasionally changes store and personnel schedules to address anticipated changes in demand, such as during Black Friday. This flexibility supports optimal retail revenues, especially during special shopping occasions.

10. Maintenance . With regard to maintenance needs, Walmart addresses this decision area of operations management through training programs to maintain human resources, dedicated personnel to maintain facilities, and dedicated personnel to maintain equipment. The retail company’s human resource management involves training programs to ensure that employees are effective and efficient. On the other hand, dedicated personnel for facility maintenance keep all of Walmart’s buildings in shape and up to corporate and regulatory standards. In relation, the company has dedicated personnel as well as third-party service providers for fixing and repairing equipment like cash registers and computers. Walmart also has personnel for maintaining its e-commerce websites and social media accounts. This combination of maintenance approaches contributes to the retail company’s effectiveness in satisfying the concerns in this strategic decision area of operations management. Effective and efficient maintenance supports business resilience against threats in the industry environment, such as the ones evaluated in the PESTEL/PESTLE Analysis of Walmart Inc .

Determining Productivity at Walmart Inc.

One of the goals of Walmart’s operations management is to maximize productivity to support the minimization of costs under the cost leadership generic strategy. There are various quantitative and qualitative criteria or measures of productivity that pertain to human resources and related internal business processes in the retail organization. Some of the most notable of these productivity measures/criteria at Walmart are:

  • Revenues per sales unit
  • Stockout rate
  • Duration of order filling

The revenues per sales unit refers to the sales revenues per store, average sales revenues per store, and sales revenues per sales team. Walmart’s operations managers are interested in maximizing revenues per sales unit. On the other hand, the stockout rate is the frequency of stockout, which is the condition where inventories for certain products are empty or inadequate despite positive demand. Walmart’s operations management objective is to minimize stockout rates. Also, the duration of order filling is the amount of time consumed to fill inventory requests at the company’s stores. The operations management objective in this regard is to minimize the duration of order filling, as a way to enhance Walmart’s business performance.

  • Reid, R. D., & Sanders, N. R. (2023). Operations Management: An Integrated Approach . John Wiley & Sons.
  • Szwarc, E., Bocewicz, G., Golińska-Dawson, P., & Banaszak, Z. (2023). Proactive operations management: Staff allocation with competence maintenance constraints. Sustainability, 15 (3), 1949.
  • Walmart Inc. – Form 10-K .
  • Walmart Inc. – History .
  • Walmart Inc. – Location Facts .
  • Walmart’s E-commerce Website .
  • Copyright by Panmore Institute - All rights reserved.
  • This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
  • Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.

More From Forbes

Walmart to use rfid to improve ‘store level’ inventory accuracy in home goods, consumer electronics.

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Jan 9, 2020 Mountain View / CA/ USA - People shopping at a Walmart store in south San Francisco bay ... [+] area

Given Walmart’s sheer size, it's a big deal any time it expands its use of RFID technology to improve the capabilities of its stores. And that’s precisely what has happened.

As reported recently in RFID Journal, Walmart’s US division has advised its suppliers that it is extending its tagging requirements to products in many new merchandise categories. By September these items will need to be arriving in Walmart’s stores with RFID smart labels. 

This is a very clever move on Walmart’s part. And though 2022 is still young, some people think this may turn out to be the year’s biggest Omnichannel Retailing news story. 

Expanding Beyond Apparel & Footwear

Back in 2019, Walmart USA directed all suppliers of Apparel, Footwear, Sunglasses and Watches to begin applying RFID tags to merchandise. Much of the Jewelry category was included too. Walmart now also uses RFID to manage its inventory of Tires.  

Fast forward to 2022.  Some of the new categories are:

·     Consumer Electronics (think TVs, Xboxes)

·     Wireless (think Mobile Phones, Tablets, Accessories)

·     Kitchen & Dining

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·     Home Décor

·     Bath & Shower

·     Bedding

·     Furniture

·     Storage & Organization

·     Car Batteries

As reported by Advertising Age, Walmart’s memo to its suppliers includes the following statements:

1.   “Over the last year, we have successfully implemented RFID technology in our Apparel departments and have seen dramatic results.”

2.   “We have improved On Hand Accuracy, which has grown Online Order Fulfillment. These dramatic improvements have had major impacts on Sell Through and customer satisfaction.”

3.   “With the success of this initiative, Walmart plans to continue expanding this program to other departments and categories. RFID will help improve Inventory Accuracy, which leads to a better in-store shopping experience for customers, more online and pick-up in-store capabilities and greater sales opportunities.”

Putting This In Context

Walmart is known for offering good merchandise at great prices. Being able to say “even Walmart puts RFID smart labels on its Apparel or Home Goods or (you name the product)” is very powerful. 

Most people don’t realize this, but back around 2011 Walmart USA was set to require all Apparel and Footwear to be tagged. Unfortunately, some patent litigation created a delay. It was resolved a couple years later. But by the time the dust settled, “store level” inventory accuracy was overtaken by other competing Walmart initiatives. 

Let that sink in for a moment. A decade ago, the Retail industry was essentially at a point where even Walmart was using RFID on all of its Apparel and Footwear. While it’s true that the cost of RFID tags decreased further in the interim, by 2011 they were cheap enough to generate sufficient ROI — not just for Walmart, but for all companies selling Apparel and Footwear at price points higher than Walmart’s.

By the time of Walmart’s 2019 directive to its Apparel and Footwear suppliers, Target had beaten it to the punch by a full two years. And Target’s program included all Soft Home goods , not just Apparel and Footwear. Overseas, UK retailer Tesco’s rollout in the Apparel category was well underway by 2015, and C&A’s rollout in Apparel took flight by 2016.  By then Macy’s had made RFID tagging a formal requirement for the vast majority of its merchandise too. Nordstrom, Belk, and Dillard’s have now done so as well.

The fact that there isn't a single product in Walmart’s recent expansion that isn’t already being tagged for at least one other retailer doesn't diminish the significance of this news from Bentonville. 

Walmart Stores In Other Countries

There is no word on when Walmart stores outside America will begin using RFID too. I spoke with Myron Burke, a former Walmart executive who guided much of the company’s Store Innovation work from 2007 onward, until leaving the company in 2019. Many within the retail community regarded him as the face of the RFID program at Walmart. According to Burke, in countries outside the US, Walmart typically leaves it to the discretion of the CEO leading Walmart’s business in that country to decide whether and how they will begin participating in such initiatives.

That being said, Burke believes that Walmart Canada is the strongest candidate to be next to give RFID capabilities to its stores, followed by Walmart Mexico. Relative to other Walmart businesses around the world, Walmart Canada and Walmart Mexico have the most overlap with Walmart USA in terms of the cores of their IT platforms. They therefore have more that can be immediately leveraged if they wish to move forward with RFID.

It’s now fair to wonder when Walmart Canada or Walmart Mexico might make announcements of their own.

The Bottom Line

Apparel and Footwear are the categories where RFID proliferated first within Retail. But there has also been a steady uptick in other major consumer product categories in recent years. Walmart’s wise decision to improve its Store Level Inventory Accuracy in Home Goods, Wireless and Consumer Electronics will now shine the spotlight on the value RFID has already been delivering in these other market sectors.

Marshall Kay

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How Walmart enhances its inventory, supply chain through AI

The largest company in the U.S. simulates its yearly peak event, Black Friday, with AI to anticipate hiccups — and customer demand.

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Technology is critical to Walmart’s ability to put items promptly in the hands of its customers — and anticipate what merchandise shoppers need or want even before they do. 

"There are a few things that you need to get right, and that's why AI and ML works very well for us," said Srini Venkatesan, EVP, U.S. Omni Tech at Walmart Global Tech. "We need to decide what are those catalogs that the customer wants."

AI shapes that catalog of items by analyzing a host of inputs, including customer trends, shopping trends, seasonality and in-demand items. Once third-party sellers add items into the company's Marketplace offering, AI and ML support logistics.

"What we've seen is the adoption of Walmart Fulfillment Services has seen substantial growth compared to the sellers fulfilling themselves," said Venkatesan.

Walmart uses AI to enhance daily supply chain workflows, helping anticipate cycles in demand, especially amid peak or unexpected events in customer traffic. But the solutions have required a multiyear push toward data collection and curation, the creation of flexible algorithms and a global, not piecemeal, approach to technology.

These capabilities did not come together overnight. Venkatesan says there are three core pieces to building AI and ML components that are accurate but also effective:

  • A foundation of data, which Walmart has been collecting and curating 
  • Taking an ensemble approach – not every problem has the same solution, and AI and ML models should be able to adapt to different problems.
  • End-to-end thinking: AI and ML must not focus on smaller events but be able to optimize processes at the global level.

Using AI to forecast demand supports the company through sizable sales spikes. The bulk of the shopper volume on Black Friday, the largest shopping event of the year, takes place online.

Nearly 200 million people shopped online and in-person during the break between Thanksgiving and Cyber Monday, according to data from the National Retail Federation . The onslaught of shoppers marked an increase of more than 17 million people year-over-year, the trade group found.

AI and ML based predictions help the company balance its network, placing inventory in the right location and at the right time as shoppers pack their physical or digital shopping carts.

"The technology is the same," said Venkatesan. "You have to actually simulate exactly what the scenario will be for a Black Friday. And the best output you will see is if nobody notices that Black Friday happened and just moves on."

But AI also helps the company overcome pressure tests no one can see coming.

Preparing for the unforeseen

Consider AI's potential as a planning tool. Fed the right data sets, this technology can anticipate stress points, allowing businesses the flexibility to react before any negative consequences arise.

Three-quarters of retailers say AI is essential to supply chain operations and management, according to IDC's Industry AI Path report published last year. A similar proportion of leaders said AI was key to marketing, operations and merchandising.

Beyond daily operations and expected spikes in consumer traffic, AI is also there to quickly simulate new scenarios and offer plans of action in the event of a natural catastrophe.

When Hurricane Ian hit Southwest Florida in the fall, the inclement weather damaged a Walmart distribution center, eventually staying offline for about seven days, according to Venkatesan.

"Not only was a node offline, we also had a lot more demand because people shop a lot more after a weather event," he said. AI allowed Walmart to reroute shipments and ensure the demand is met.

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walmart inventory management case study

“We Need People to Lean into the Future”

A conversation with Walmart CEO Doug McMillon by Adi Ignatius

walmart inventory management case study

Summary .   

For years, Walmart’s unrivaled customer research capabilities helped it dominate retailing. Then along came the internet, and Walmart suddenly found itself playing catchup to e-commerce pioneers like Amazon. In 2014 the board appointed Doug McMillon as CEO and gave him an imperative: Bring Walmart into the future—without sacrificing its longtime strengths.

McMillon, who began his career unloading trucks at a neighborhood Walmart, respects tradition but is impatient for change. In this interview with HBR editor in chief Adi Ignatius, he describes the ups and downs of transforming America’s largest company. Going digital is a top priority—which is why Walmart recently paid $3 billion to acquire e-tailer Jet.com. But the company also wants to strengthen the in-store experience. “The reality,” notes McMillon, “is that customers want everything”—low prices, convenience, and seamless interactions online and in person. In this new world, all employees, including those on the sales floor, will need to be tech savvy. And the management team can no longer make strategic decisions on an annual or even quarterly basis; “strategy is happening on a much faster cycle time,” says the CEO.

For years, Walmart seemed to understand exactly what its customers wanted. It developed complicated consumer analytics and used that data, along with relentless pressure on suppliers, to become a retail powerhouse that sold practically everything at the lowest possible prices.

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Senior Manager, Continuous Improvement Manufacturi...

Senior manager, continuous improvement manufacturing case ready beef olathe, ks.

  • Location OLATHE, KS
  • Career Area Project and Program Management - PMO
  • Job Function Process Improvement
  • Employment Type Regular/Permanent
  • Position Type Salary
  • Requisition WD1987793

What you'll do at

Position Summary...

What you'll do...

Job Description:

We are seeking a highly skilled Senior Manager of Continuous Improvement to join our team. This role is essential in driving the execution of multiple business plans and projects by identifying customer and operational needs, developing and communicating business plans and priorities, removing barriers and obstacles that impact performance, providing resources, and measuring progress.

The Senior Manager will also be responsible for:

  • Supervision and Development: Providing supervision and development opportunities for associates by selecting, training, mentoring, assigning duties, building a team-based work environment, establishing performance expectations, conducting regular performance evaluations, and coaching for success and improvement.
  • Policy and Compliance: Promoting and supporting company policies, procedures, mission, values, and standards of ethics and integrity by training and providing direction to others in their use and application, ensuring compliance, and supporting the Open Door Policy.
  • Continuous Improvement Expertise: Mentoring Lean Six Sigma White and Green Belt candidates, encouraging them to question current processes, aligning continuous improvement initiatives with business strategies, and participating in strategic planning meetings within different areas of the company.
  • Project Leadership: Designing, implementing, and leading continuous improvement projects by partnering with plant leadership to evaluate strategies, consulting regarding best practices, conducting program assessments, and using Lean and Six Sigma principles to optimize value streams.
  • Lean Program Facilitation: Leading and supporting the Lean Coordinator in the facilitation of assigned Lean programs and training courses, providing prepared materials, guiding application of adult learning techniques, and overseeing the administration of practice sessions and examinations.
  • Operational Strategy: Utilizing knowledge of plant operational metrics and processes to establish and drive continuous improvement strategies by identifying industry trends, collaborating with plant leadership, developing improvement recommendations, and influencing leadership buy-in for continuous improvement initiatives.
  • Lean and Six Sigma Programs: Promoting Lean and Six Sigma principles within the Dairy Plant, educating leadership and associates, and developing/customizing the Lean Six Sigma Continuous Improvement curriculum with comprehensive reference materials, examples, exercises, and case studies.

Qualifications:

  • Proven experience in continuous improvement, Lean, and Six Sigma methodologies.
  • Strong mentoring, coaching, and supervisory skills.
  • Excellent communication and collaboration skills.
  • Ability to lead and deliver complex projects.
  • Demonstrated adaptability and continuous learning capabilities.
  • Strong ethical standards and integrity.

The above information has been designed to indicate the general nature and level of work performed in the role.  It is not designed to contain or be interpreted as a comprehensive inventory of all duties, responsibilities and qualifications required of employees assigned to this job. The full Job Description can be made available as part of the hiring process.  

Join Walmart and your work could help over 275 million global customers live better every week. Yes, we are the Fortune #1 company. But you’ll quickly find we’re a company who wants you to feel comfortable bringing your whole self to work. A career at Walmart is where the world’s most complex challenges meet a kinder way of life. Our mission spreads far beyond the walls of our stores. Join us and you'll discover why we are a world leader in diversity and inclusion, sustainability, and community involvement.  From day one, you’ll be empowered and equipped to do the best work of your life. 

www.careers.walmart.com

Benefits & Perks: 

Beyond competitive pay, you can receive incentive awards for your performance.  Other great perks include 401(k) match, stock purchase plan, paid maternity and parental leave, PTO, multiple health plans, and much more. 

Equal Opportunity Employer 

Walmart, Inc. is an Equal Opportunity Employer – By Choice.  We believe we are best equipped to help our associates, customers and the communities we serve live better when we really know them.  That means understanding, respecting and valuing diversity- unique styles, experiences, identities, ideas and opinions – while being inclusive of all people. 

For information about PTO, see https://one.walmart.com/notices .

For information about benefits and eligibility, see One.Walmart .

Minimum Qualifications...

Outlined below are the required minimum qualifications for this position. If none are listed, there are no minimum qualifications.

Preferred Qualifications...

Outlined below are the optional preferred qualifications for this position. If none are listed, there are no preferred qualifications.

Primary Location...

About walmart.

Valued at Walmart

"I love that at Walmart, each associate has the opportunity and autonomy to create their own career path and grow."

All the benefits you need for you and your family

  • Multiple health plan options, including vision & dental plans for you & dependents
  • Financial benefits including 401(k), stock purchase plans, life insurance and more
  • Associate discounts in-store and online
  • Education assistance for Associate and dependents
  • Parental Leave
  • Pay during military service
  • Paid Time off - to include vacation, sick, parental
  • Short-term and long-term disability for when you can't work because of injury, illness, or childbirth

Eligibility requirements apply to some benefits and may depend on your job classification and length of employment. Benefits are subject to change and may be subject to specific plan or program terms. For information about benefits and eligibility, see One.Walmart.com/Benefits .

Frequently asked questions

On average, how long does it take to fill out an application.

It depends on the role you are applying to. We do our best to keep the application process to approximately 15-20 minutes, plus an additional 20-30 minutes if an assessment is required. Further applications are faster as our system saves your data. Not all roles require an assessment and certain roles may require additional assessments.

Can I change my application after submitting?

No, you cannot change your application after submitting, so please make sure that everything is finalized before you hit the submit button.

How do you protect my personal information?

Processing of information on paper is minimal, and Walmart processes application information using an applicant tracking system (ATS). Access to the data within the ATS is restricted to authorized personnel, and the system itself is held to high security standards by Walmart.

What are the recommended Internet Browsers for applying for open roles?

  • Firefox 115+
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COMMENTS

  1. Walmart's Inventory Management

    Learn how Walmart uses different types, roles, and methods of inventory to support its financial performance and address the bullwhip effect. Explore the vendor-managed inventory model, just-in-time cross-docking, and inventory performance measures in the retail business.

  2. Case Study: Inventory Management Practices at Walmart

    In 1991, Wal-Mart had invested approximately $4 billion to build a retail link system. More than 10,000 Wal-Mart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories. The details of daily transactions, which approximately amounted to more than 10 million per day, were processed ...

  3. Retail Supply Chain Systems Analysis: A Case of Walmart

    Abstract: Walmart is one of the largest retailers in the world, and its supply chain system is. affected. Through the analysis of Walmart's business and technology, this pape r discusses the ...

  4. Walmart Supply Chain: How to Build an Integrated Supply Chain

    Learn how Walmart has achieved a successful and integrated supply chain through data-driven strategies, automation, information technologies, and a competitive strategy of offering everyday low prices. Explore the features, benefits, and challenges of Walmart's supply chain practices and how they have propelled its growth and dominance in the retail industry.

  5. Decking the aisles with data: How Walmart's AI-powered inventory system

    Combining decades of customer service and holiday inventory management with AI insights. Walmart has helped customers and members celebrate the holidays for more than 60 years by continually advancing our inventory management processes to ensure customers can find everything from coveted gifts to festive treats. In recent years, we have tested ...

  6. Walmart Inventory Management: A Comprehensive Guide

    Learn how Walmart operates on a distinctive inventory system, setting it apart from other e-commerce platforms. Discover the benefits, strategies, and challenges of Walmart's vendor-managed inventory model and how it works.

  7. Walmart's Supply Chain: Powering Efficiency & Automation

    What's more, Walmart spent $14 billion in 2021 on supply chain automation. This begins with automated warehouse management and control systems, which are software, and automated picking, sorting and putting systems, which are hardware. The software handles inventory control of the bewilderingly large assortment of Walmart's various online ...

  8. Walmart's Operations Management: 10 Strategic Decisions & Productivity

    Learn how Walmart Inc. optimizes efficiency and productivity in its retail operations through 10 strategic decisions, such as supply chain management, inventory management, and quality management. See how the company applies these decisions to its products, services, and locations to achieve competitive advantage and growth.

  9. ARTICLE TITLE Walmart's Data Analytics for Optimised Inventory and

    Walmart's Data Analytics for Optimised Inventory and Customer Insights. Author Name 1*. LI SHENHAO. 1 Graduate School of Business, Universiti Kebangsaan Malaysia, 43600 UKM, Bangi, Selangor ...

  10. Walmart's Massive Investment In A Supply Chain Transformation

    Walmart's investment in ecommerce, supply chain, and technology in the US was over $11 billion over the last two years. For retailers, remodeling stores and building new stores is usually where ...

  11. Full article: Vendor-managed inventory in practice: understanding and

    1. Introduction. After early adoption by Walmart and Procter & Gamble in 1985 (Buzzell and Ortmeyer Citation 1995), Vendor Managed Inventory (VMI) agreements have been increasing in popularity and are now widely used in several industries (Wang et al. Citation 2008).For example, 84 % of companies with over $ 1 Billion revenue and two-thirds of mid-size companies have suppliers managing ...

  12. Walmart To Use RFID To Improve 'Store Level' Inventory ...

    Much of the Jewelry category was included too. Walmart now also uses RFID to manage its inventory of Tires. Fast forward to 2022. Some of the new categories are: · Consumer Electronics (think TVs ...

  13. Factors Influencing Organization Success: A Case Study of Walmart

    A longitudinal case study of Amazon's financial situation during the 2016-2020 period, and time-series analysis, ratio analysis, and DuPont analysis, are employed as a quantitative methodology ...

  14. How Walmart enhances its inventory, supply chain through AI

    How CIOs are driving generative AI adoption. Walmart uses AI to enhance daily supply chain workflows, helping anticipate cycles in demand, especially amid peak or unexpected events in customer traffic. But the solutions have required a multiyear push toward data collection and curation, the creation of flexible algorithms and a global, not ...

  15. PDF The Importance of Successful Inventory Management to Enterprises-A Case

    The Importance of Successful Inventory Management to Enterprises -A Case Study of Wal-Mart . Ruonan Lin . Zhejiang Wanli University, Ningbo City 315100, China . [email protected] . Keywords: Inventory management; Importance; Methods; Wal-Mart . Abstract: Inventory management is an important part of internal control is the company achieve

  16. An Inside Look at the Ups and Downs of Walmart's Journey

    Going digital is a top priority—which is why Walmart recently paid $3 billion to acquire e-tailer Jet.com. But the company also wants to strengthen the in-store experience. "The reality ...

  17. Case Study Inventory Management Practices at Walmart

    Home » Management Case Studies » Case Study: Inventory Management Practices at Walmart. Case Study: Inventory Management Practices at Walmart About Walmart. Wal-Mart Stores, Inc. is the largest retailer in the world, the world's second-largest company and the nation's largest nongovernmental employer.

  18. Case Study Of Walmart's Inventory Management Operations

    As a result, they could reduce inventory cost. Lead time was cut down from 21 to 11 days, sales grew by $8.5mn, on hand inventory reduced by two weeks. Having a centralized system in place Walmart was also able to allow customers to pull merchandise to the store than having the company push its goods on the.

  19. Inventory Management Stockouts

    Walmart claims 90% to 95% in-stock level. Although this figure seems impressive, especially when taking into account the enormous size of its operations, it also means that the company could be foregoing $1.29 billion to $2.58 billion in potential sales (calculated as 5-10% of its inventory level of $25.8 billion on its 2012 annual report).

  20. Understanding Inventory Management Formulas: AWS, WOS, and

    In that case, they may look at the ending inventory over several months in order to compute the average. The manager would add up the ending inventory for each time period and then divide by the number of time periods. AI = Sum of EOH for inventory periods # of inventory periods For example, let's take a look at Walmart's numbers again. This ...

  21. Senior Manager, Continuous Improvement Manufacturi...

    Position Summary...What you'll do...Job Description:We are seeking a highly skilled Senior Manager of Continuous Improvement to join our team. This role is essential in driving the execution of multiple business plans and projects by identifying customer and operational needs, developing and communicating business plans and priorities, removing barriers and obstacles that impact performance ...