The operations of a company refer to the collective interrelated activities put together and
aimed at achieving the company’s goals and objectives. Since its establishment in 1962,
Walmart has strategically and technically risen to become one of the most successful companies
with millions of customers across the world shopping physically at different stores and virtually
online (Chuang, Donegan, Ganon and Wei, 2011). To deliver its promise of providing affordable
quality goods and services to its customers as per its slogan “Save money, live better”, Walmart
has designed customer-based marketing and management operations as discussed below.
The quality of products offered to the consumers is paramount in the operations
management of Walmart and it is offered through three ranks of quality standards. The lowest-
ranked brands such as the Great Value are designed for the majority of customers and they meet
their minimum quality expectations. The middle rank focuses on the average market quality and
it is designed for low- cost retailers while the upper rank which is applied to brands such as
Sam’s Choice, is designed for products that exceed market average quality (Walmart: Operations
Management 10 Decisions, Productivity – Panmore Institute, 2020). Through this approach, Walmart
has ensured the best quality products for every consumer.
The marketing target of any business entity is to reach as many consumers as possible. To
achieve this, Walmart has strategically placed their stores and warehouses near and within urban
centers to ensure easy accessibility by its customers. The company relies widely on information
from the internet and responses of customers on social media platforms such as Facebook and
Twitter to group the interests of potential customers and decide on the location of their stores.
Also, most of its major stores operate on a 24hr basis to provide fulltime accessibility by
customers (Walmart: Operations Management 10 Decisions, Productivity – Panmore Institute, 2020) This
OPERATIONS OF WALMART.
strategic positioning of stores ensures a steady supply of products and consequently maximizes
the market reach.
Human resources are a key factor in the operation of the business since the success of all
business operations is highly dependent on the efficiency of the available personnel. Walmart has
in the past faced the challenge of frequent turnovers due to the low wages it offered to
employees. To address this challenge, the company has adopted a continuous hiring mechanism
and training of already existing personnel (Walmart: Operations Management 10 Decisions,
Productivity – Panmore Institute, 2020). Further, the company ensures proper maintenance of
personnel, structures and equipment for the efficiency of operations.
Under inventory management, Walmart has an inventory system which comprises of a
cross-docking model that involves moving goods from the receiving dock to the distribution end
without storing. The company also has a vendor managed inventory system which helps its
suppliers to access real-time data and know when to supply the goods to the stores (Walmart:
Operations Management 10 Decisions, Productivity – Panmore Institute, 2020) By so doing, the
company cuts down on operation costs by avoiding paying for storage of goods at the docking
point thus being in a position to offer their customers goods and services at low prices.
In its process of designing the layout of retailing points such as supermarkets and stores,
Walmart relies on the analysis of customers' shopping behaviors. This dictates the location and
placement of particular products for convenient access by customers. It also helps the company
in stocking goods inside its warehouses for easy distributions along the supply chain : (Walmart:
Operations Management 10 Decisions, Productivity – Panmore Institute, 2020). The company controls
its supply chain management through an information technology system that minimizing its
operational costs.
OPERATIONS OF WALMART.
Walmart has established itself among the largest retailers and market leaders in the world
by implementing the above strategies of operation management placing itself in a position to
influence both suppliers and consumers to its advantage. After conquering the market, it is now
able to offer the best quality at affordable prices to its consumers.
OPERATIONS OF WALMART.
REFERENCES
Chuang, M., Donegan, J., Ganon, M. and Wei, K., 2011. Walmart and Carrefour experiences in China:
resolving the structural paradox. Cross Cultural Management: An International Journal, 18(4), pp.443-
463.
Panmore Institute. 2020. Walmart: Operations Management 10 Decisions, Productivity – Panmore
Institute. [online] Available at: <http://panmore.com/walmart-operations-management-10-decisions-areas-
productivity-case-study-analysis> [Accessed 18 March 2020].