2. ASHLEY SHORT 1
I. Overview of Retailer Operation
Retailer: Walmart
Walmart is a general merchandise retailer, which means that this
company sells a wide variety of merchandise, such as toys, clothing, health and
beauty products, and food. These retailers market towards everybody including
men, women, children and pets. (Suttle.)
Executive Management
Position Name
President, CEO at Walmart Stores Doug McMillon
President, CEO Walmart US Greg Foran
President, CEO Walmart International David Cheesewright
President, CEO Sam’s Club Rosalind Brewer
President, CEO Global eCommerce Neil Ashe
Executive Vice President, Treasurer Claire Babineaux-Fontenot
Executive Vice President, Softlines and
General Merchandise, Walmart US
Andy Barron
Executive Vice President, Corporate
Affairs
Dan Bartlett
Chief Operating Officer, Global
eCommerce
Michael Bender
Executive Vice President and Chief
Financial Officer, Walmart
International
Brett Briggs
Executive Vice President, Food,
Walmart US
Steve Bratspies
President and Chief Executive Officer,
Walmart EMEA
Shelley Broader
Executive Vice President, Global
People Division
M. Susan Chambers
Executive Vice President and Chief
Financial Officer, Walmart US
Michael Dastugue
Executive Vice President, Global
Customer Insight and Analytics
Cindy Davis
Executive Vice President, Chief
Administration Officer
Rollin Ford
Executive Vice President, Operations,
Sam’s Club
Don Frieson
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Executive Vice President, Global
Governance and Corporate Security
Jeffrey Gearhart
Executive Vice President,
Consumables and Health and
Wellness and US Manufacturing Lead,
Walmart US
Michelle Gloeckler
Executive Vice President and Chief
Financial Officer
Charles Holley
Executive Vice President,
Merchandising Operations, Walmart
US
Scott Huff
President and CEO, samsclub.com Jamie Iannone
Executive Vice President, Global Chief
Ethics and Compliance Officer
Jay Jorgensen
President and CEO, Walmart.com Fernando Madeira
Chief Operating Officer, Walmart U.S. Judith McKenna
Executive Vice President,
Supercenters – Walmart U.S.
Michael S. Moore
Executive Vice President,
Neighborhood Markets – WalmartU.S.
Julie Murphy
Executive Vice President - Walmart
U.S. People
Kristin Oliver
President and CEO, Walmart Mexico,
Central America and Latin America,
Chairman of the Board of Directors,
Walmex
Enrique Ostalé
Chief Administrative Officer – Walmart
International; President and CEO,
Walmart Asia
Scott Price
Executive Vice President, Chief
Marketing Officer, Walmart U.S.
Stephen F. Quinn
Executive Vice President,
Merchandising, Sam's Club
Charles Redfield
Executive Vice President and General
Counsel, Wal-Mart Stores, Inc.
Karen Roberts
Executive Vice President, International
People Division
Gisel Ruiz
Executive Vice President, Logistics,
Walmart U.S.
Chris Sultemeier
Executive Vice President, Chief
Information Officer
Karenann Terrell
Senior Vice President and Controller Steven P. Whaley
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Executive Vice President, Global
Sourcing, WalmartLeverage
Tim Yatsko
(“Executive Management.”)
Walmart has implemented for many years compliance programs, and
have such programs in each country in which their business operates. The
company did address some issues that were brought about, and have taken
action to assist with resolving these issues. These actions include hiring Chief
Compliance Officers and Anti-Corruption Directors in each market/region,
implementing common compliance systems, conducting regular risk
assessments using standardized tools, and increased training. Walmart has also
implemented changes in how they report and investigate any allegations
worldwide. Another policy that has evolved throughout the Walmart business is
in the compensation program for senior executive officers. It has been made
that these executives may not receive their annual cash incentives or they may
be reduced if it is determined that the company’s progress is unsatisfactory.
(“Walmart Global Compliance Action Steps.”)
For a few decades now, Walmart has been evolving into the supply chain
management, with elements including distribution practices, operating their
own fleet of trucks for delivery, and technology evolution. From this supply chain,
the business has seen time savings, more cost-effective inventory management,
and better forecasting. Walmart began using a computer system to control
inventory in 1975, and this has continued to evolve to assist with the database of
products. Also, the business has around 160 distribution centers, in which 81% of
their merchandise passes through. (University Alliance.)
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Walmart Supply Chain Management
Walmart is one of the largest retailers in the world, and makes billions of
dollars every year in revenue. They are a successful business, and I believe the
reason they are so successful is because they offer merchandise for everyone in
the family, as well as offers products that can fit any budget. Majority of the
merchandise has a generic version that is cheaper and a name brand that is
average-to-expensive priced. Consumers may choose to shop at Walmart
rather than their competitors because of this wide range of products, as well as
the range of prices of merchandise that is affordable to all. The retailer does
offer merchandise that is suitable for occasions, such as holidays, birthdays and
back to school, along with merchandise for everyday life, including clothing,
food and hygiene products.
PURCHASING
MANAGERS:
Determine
which products
will sell, Find
vendors,
Arrange deals
OPERATIONS:
Demand
planning,
Forecasting,
Inventory
management
DISTRIBUTION:
Moving product
from
warehouses to
consumers
INTEGRATION:
Connects the
flow of work
and information
to maximize
efficiencies
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Walmart Competitors:
Target
Big Lots
Dollar General
Costco
Amazon
(“Walmart Stores, Inc. Competitors.”)
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II. Retailer Target Market and Communication System
Target Market
Age: 25-65 years old
o (Peterson.)
Gender: About 55% of Walmart shoppers are Women
o (“Are You a Target or Wal-Mart Shopper?”)
Ethnicity: All Races, Primarily Caucasian
o (Peterson.)
Income: Lower to Middle Class; $30,000-$60,000
o (“Walmart and Target: A Tale of Two Discount Chains.”)
Life-Cycle: Walmart consumers shop at the retailer for many reasons,
whether it be to purchase clothing, food, baby merchandise, home
products, electronics and entertainment, health and beauty products,
and pet supplies. The retailer provides merchandise for all members of the
family, and can truly be the one-stop shopping destination for many of
their consumers.
Communication System
Walmart has created a Global Ethics corporate department that is responsible
for promoting their culture of integrity. This responsibility includes upholding
policies and communication throughout the business and their stakeholders.
They also lead a continuing education and communications system. (“Ethics
and Integrity.”)There is a continuous flow of information among employees,
stakeholders and consumers through communication among coworkers and
management, as well as the use of social media.
According to Walmart’s Global Statement of Ethics, members of management
are responsible for:
Meeting with their direct reports periodically about the Statement of Ethics
and Walmart’s beliefs
Ensure ethics always come first if there is a conflict
Lead by example and encourage associates to act with integrity
Ensure open communication by encouraging employees to speak up
and/or ask questions
Appreciate employees
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All employees are responsible for:
Reading and understanding the company’s beliefs and the Statement of
Ethics.
Learning the policies that are applicable to their job
Asking for help immediately if an issue arises
(“Global Statement of Ethics.”)
Evaluating the Communication System
Does it lead t o cont inuous cust omer cont act?
By the members or management and employees being in continuous contact
with each other, then they can ensure that issues are being handle
appropriately and taken care of. This communication will assist with improving
and maintaining excellent teamwork skills, as well as building trust among
coworkers and ensure the happiness of all employees. Also, by keeping all
employees on the same page, consumers can feel assured they are receiving
the correct information.
Does it involve as many employees as possible?
Yes, all employees are made aware of the Statement of Ethics, as well as
informed of any policy changes or any other changes within the organization.
All employees know what is expected of them in their job, and given the tools to
be successful through training and handbooks.
Is t here a formal process t o listen, analyze, and respond t o cust omer
complaints?
Through the Walmart Global Ethics website, there is a section to report a
concern. In this section, concerns can be submitted electronically, sent via
email to an established address, or call a helpline to report an issue. In addition
to being able to report a concern, there is also a link on the Global Ethics page
to check the status of these complaints. (“Home.”)
What communication t ools are used?
In regards to consumers, Walmart uses social media and advertisements to
reach out to them. A major source is through Twitter, and the company has
used certain Twitter handles such as @WalmartNewsroom, @WalmartVeterans,
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and @WalmartGiving, for the material they post. (Pollitt.)In addition to using
Twitter, Walmart also uses Pinterest, Facebook and Google+ to communicate
with consumers. (Moth.)For employees, there is a PDF attachment through the
Global Ethics webpage for the Statement of Ethics. (“Home.”)
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III. Training and Loss Prevention
Training for Management:
Walmart looks for individuals that are strong in skills such as organization,
communication, financial and good with people/consumers. The management
team must go through extensive training before they are ready to start their role.
The company has established an Assistant Manager Training Program for the
Walmart stores and a Manager in Training Program for the Sam’s Club stores.
Both of these programs expose the management member to operations of the
company, as well as opportunities to rotate in various areas around the stores.
(“Working Here.”)
The management training programs span over a four month period of
time, in which trainees are immersed in on-the-job training, “master classes,
virtual classroom environments, instructor-led events, self-paced study, student-
led activities, experimental exercises, service projects, distance learning, and
small group discussions.” The courses focus on areas such as communication,
global thinking, international scoping and leadership. (McKinney.)
Thus far, the training programs that are established for management has
proven to be positive. The programs have produced confident, consistent and
thoroughly trained members of management. Walmart has recognized that
investing in the futures of employees and management members is essential for
their future. (McKinney.)
Along with the extensive management training programs, Walmart also
has the Walton Institute, which is located at the University of Arkansas (near
Walmart headquarters). This educational environment acts as a training location
for Walmart leaders from all over the world, and trainees are offered an
education that will assist them with cultural issues and focus on the continuous
improvement of the brand. (“Working Here.”)
Training for Other Staff:
Walmart is focused on continuously providing education and training to
all employees. In addition to offering paths for advancement, the company has
mentoring programs, leadership courses and associate research groups in which
employees may be involved in. (“Working Here.”) Much of the training for all
associates takes place through online learning classrooms, with courses being
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taken during the associate’s normal work hours. This training typically takes a
couple days to complete, depending on how many hours are worked in a shift.
These courses offer valuable information about proper store pract ices, safety
guidelines, loss prevention and about Walmart policies. After training is
completed, associates are encouraged to revisit any courses they feel
necessary, and there are also periodically new courses when revisions are made
to any policies or procedures. It is very likely that associates can move up in the
company, and it is not unordinary for associates to train for management
positions. (Okulski.)
Loss Prevention Policies and Procedures:
According to Walmart’s Asset Prevention Policy, all members of
management and associates working in the asset prevention department are
responsible for investigating and surveilling any persons that are suspected of
shoplifting. These members are responsible for providing an accurate statement
of events and contacting local law enforcement. Walmart has established “Four
Acts” that must occur before the suspect may be approached, which include:
1. Selection
2. Concealment/Dispossession
3. Continued Possession of the Merchandise
4. Passing the Last Point of Sale
Once the associate for Walmart, along with one other associate for
assistance, observes these “Four Acts,” the suspect may be approached. Both
of the store associates must be over the age of 18. From there, the associate
must explain the reason they are being approached, try to verify any
merchandise that has been taken, and decide whether or not to detain the
suspect. In the policy, it is stressed that “protecting the physical well-being of
Suspects, customers and Walmart associates is the first priority.”
The guidelines/policy for prosecution of shoplifters at Walmart are:
The retail value of all merchandise exceeds $25 and the suspect is
between the ages of 16 and 65.
OR
The suspect between the ages of 16 and 65 is unable to produce a State
identification.
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OR
The suspect is a repeat shoplifter, regardless of value in merchandise or
age.
OR
The suspect committed or threatened violence, regardless of value in
merchandise or age.
(“Investigation and Detention of Shoplifters Policy (AP-09).”)
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IV. Supply Chain Management
Synopsis and How Supply Chain Managementis Used in Walmart
Walmart implements an inventory management system called cross
docking, in which “inbound shipments are unloaded directly into outbound
trailers at distribution centers.” This system can reduce time that is required for
the transportation of goods, as well as decreases the amount of inefficiencies
and saves money on storage costs. Another positive aspect of cross docking is
that the system allows for Walmart to implement its pricing strategy, “Everyday
Low Pricing.” This pricing strategy helps to gain the trust of their consumers and
promotes frequent purchases. (Soni.)
For distribution, Walmart uses facilities and distribution locations to disperse
merchandise. According to Yahoo! Finance, approximately 80% of merchandise
for Walmart were shipped from these facilities. The remaining merchandise is
shipped directly from the suppliers to the stores. Walmart also uses these
distributions centers and superstores as fulfillment centers for their online sales,
which helps the company to stay relevant and efficient with their online sales.
(Soni.) This year, Walmart will be opening four new larger facilities in order to
meet demands for their online business. The facilities will be focused more on
individual items, where merchandise will be picked and packed for the
consumers. The goal with these new facilities will be for shipments to reach
consumers at a quicker rate, as well as help the retailer become even more
profitable with their online business. (Nash.)
Technology is a large foundation for supply chain management within
Walmart. Their advanced technology systems allows the company “to
accurately forecast demand, track and predict inventory levels, create highly
efficient transportation routes, and manage customer relationships and service
response logistics.” (Kumar.)
Finally, Walmart has established strategic vendor relationships by finding
products from suppliers at the best price and offering long-term relationships
and high volume purchases. (Lu.)
Managing Suppliers
Another way that Walmart manages supplies and merchandise is through
data sharing and collaborating with their suppliers. This strategy began in the
14. ASHLEY SHORT 13
1980’s, when Walmart was one of the first retailers to implement it. Data sharing
and the collaboration provides the ability to see information such as inventory
levels, store-levels sales data, when shipments are made, and when the
merchandise is sold. It allows to better control inventory levels, as well as
produce better forecasting data. This system is implemented with every supplier
that Walmart works with, and has proven to be effective for over twenty years.
(Waller.)
Effectiveness
“According to Supply Chain Digest, this retail giant stocks products made
in more than 70 countries and at any given time, operates more than 11,000
stores in 27 countries around the world, and manages an average of $32 billion
in inventory.” Their supply chain management model is able to cut out many
supplier costs by mostly using their own distribution centers, as well as using their
innovative technology to forecast consumer trends. Their model also helps them
to offer low prices to their consumers, and ensure they become repeat buyers.
(Lu.)
Strengths/Weaknesses
One significant factor that is a strength for Walmart and their supply chain
is their advanced technology. This system produces all of their important data
for operating the business and analyzing sales data. Also, Walmart is able to
offer their merchandise at low prices to their consumers, which are at times
significantly lower than competitors. These low prices are offered because of the
money saving tactics of the supply chain, and in return produce repeat buyers.
Finally, another strength is with the distribution centers and creation of the online
distribution facilities. These centers help to get the merchandise to consumers
faster and more efficiently.
Improvement
Continue to evolve with technology.
Consolidating direct suppliers.
Certifying environmentally sustainable products.
Committing to larger quantities of environmentally sustainable products.
(Plambeck.)
15. ASHLEY SHORT 14
V. Technology
Walmart is a leader in pioneering technologies, which they use to save
consumers money and merchandise smartly. “One such technology is radio-
frequency identification, or RFID, which transfers data stored on tags on a
product or other object, facilitating identification and tracking.” The company
has been using this system for about ten years, and has many benefits to using it.
Such benefits include more effective inventory management, tracking
merchandise in the supply chain, codes can be scanned from a distance, ability
to store more data, and provide real-time information. (University Alliance.) RFID
technology can assist with inventory, and instantly know what type of
merchandise, brands, sizes and models that consumers are purchasing. It is able
to immediately alert employees when a product needs restocked, as well as
informing the purchasing department for orders to be placed quicker.
(“Immediate Inventory Management: Everyone Wins with RFID Technology at
Walmart.”)
Effectiveness of Systems
Previously, a study was conducted to determine the effectiveness of the
RFID technology system. Results concluded that the RFID technology could
perform at 60-99% accuracy levels, and result in profits with their use.
(“Measuring the Effectiveness of RFID on Mechanical Contracting Jobsites: A
Practical Evaluation.”)Using the RFID technology has been a proven way to
effectively track inventory and customer purchases, while still being cost
effective to the retailer.
Issues/Problems with Systems
There are some issues that have been experienced while using the RFID
system. The first one that has been observed is the fact that both retailers and
suppliers manage the inventory. Because of this, retailers may command
specific RFID methods, which may increase costs for the suppliers. Also, there are
some privacy concerns with using RFID. These concerns are that retailers may be
able to access customer profiles and linking purchases with other identifiers,
such as credit card or driver’s license. (University Alliance.)
16. ASHLEY SHORT 15
How to Improve the Systems
Walmart has implemented a solution to some concerns stated above by
enforcing suppliers to place the RFID tags on removable labels or packaging.
(University Alliance.)
How Data is Collected
RFID tags contain a unique identification number, which is called an
Electronic Product Code (EPC). These tags may also contain other important
information specific to the retailer the merchandise is going to. All of the
information travels with the merchandise throughout the supply chain and other
business processes. The tags can be scanned wirelessly by a reader.
The tag is made of a silicon microchip that is attached to a small patch.
These patches are then attached to the merchandise. The reader/scanner
sends the data to and from the tag through antennas. The data is then sent to
the host computer to be processed. (Holloway.)
Image: Holloway.
Is the Data Collection Method Appropriate for the Type of Data Being Collected?
Why?
Using the RFID technology system is appropriate for Walmart, as they work
with many suppliers for their inventory needs. It has been proven that the RFID
17. ASHLEY SHORT 16
tags have the ability to track multiple types of data needed, such as
productivity, cycle time, control of assets, and what merchandise is successful
with revenues. (Holloway.)
18. ASHLEY SHORT 17
VI. Social Responsibilities
Social Responsibilities
Sust ainability
In 2005, Walmart began making strides to become more eco-friendly.
Stores were designed to be more energy efficient, and fuel-saving technology
was installed to their fleet of vehicles. Improvements were also made to driving
routes to decrease fuel consumption. (University Alliance.)
Sourcing St andards
Walmart suppliers are mandated to sign the Standards for Suppliers, which
clearly outlines the fundamental expectations regarding the treatment of
workers and impact on environment. In addition to signing the Standards for
Suppliers, it is required to display these standards for all workers to read.
(“Standards for Suppliers.”)
Opport unity
Walmart focuses on creating diversity in the workplace. The company
collaborates with various organizations to address specific needs in order to
develop an even stronger and diverse talent base in the future. Also, Walmart
realizes the importance of taking care of their associates. “A job at Walmart
opens the door to opportunity, with the chance to move up through the ranks
and build a career.” (“2015 Global Responsibility Report.”)
Community
Walmart encourages employees to support their local communities
through volunteering and matching any contributions to non-profit
organizations. Also, the company and its foundation has become involved in
disaster relief by providing meals and jobs to the community. (“2015 Global
Responsibility Report.”)
Programs, Causes and Organizations Supported by Walmart
One cause that is supported by Walmart is Women’s Economic
Empowerment. Through their initiative, the goal is to provide more training and
career opportunities. (“Women’s Economic Empowerment.”) Another cause
being supported by Walmart is fighting hunger and promoting nutrition. The
19. ASHLEY SHORT 18
company is committed to providing the best nutritional food to their consumers
at an affordable price. Walmart has been collaborating with non-profit
organizations and farmers to ensure that people have access to the food they
need. In addition to this collaboration, the “Fighting Hunger Together” initiative
that was started in 2010 has committed $2 billion to fight hunger in America.
(“Hunger and Nutrition.”) Finally, Walmart has supported veterans and their
families through providing job opportunities and other support programs. The
Walmart Foundation has donated millions of dollars for training and assistance
for veterans returning from employment. Operation Homefront is another
program from Walmart that provides toys and meals to military families during
the holiday season, as well as bringing home 500 active duty military members
to spend time with their families during the holiday season. (“Charitable
Giving.”)
20. ASHLEY SHORT 19
VII. Works Cited
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22. ASHLEY SHORT 21
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23. ASHLEY SHORT 22
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