assessment task group 8

Along with the cloud system, Walmart hasbuilt the world''''s largest private integrated satellite communications network to effectively and efficiently manage and control operations of its

a) Stocking location network: 7

b) Command and control: 10

c) Leverage artificial intelligence and machine learning technology: 10

2 Increasing Perfect Order Deliveries: 12

3 Sustainable Supply Chain Practice: 13

3.1 Walmart Supply Chain Strategy: 13

I.INTRODUCTION:1 Overview:

Walmart, founded by Sam Walton in 1962, is an American multinational retail corporationheadquartered in Bentonville, Arkansas With over 11,000 stores in 27 countries, it is the world’slargest company by revenue and employs millions of people worldwide Walmart operates undervarious formats, including Walmart Supercenters, Walmart Discount Stores, Sam’s Club, and

e-commerce platforms Walmart (2023a)

The retail giant has a strong presence across diverse product categories, includinggroceries, apparel, electronics, home goods, and more Walmart’s mission is to save people moneyso they can live better, and it strives to offer a wide range of products at affordable prices tocustomers

Source: Macrotrends (2023)

Source: Cuofano, G (2023)

II.FINDING:1 Data Visualization:

Walmart takes the pulse of social retail through data visualization By deeply exploitingretail-related data and visualizing data in real time, Walmart easily grasps the customer mindset

Source: Luu, M (2017)

1.1 Planning:a) Global order logistics systems:

Walmart has built the world's most extensive private cloud that can process more than 2.5petabytes (1 petabyte = 1 gigabyte × 1,000,000) of data per hour, allowing Walmart to retain 100%control over resources and provide a more secure cloud network It helps reduce the time to processlarge amounts of data from 2-3 weeks to 20-30 minutes Along with the cloud system, Walmart hasbuilt the world's largest private integrated satellite communications network to effectively and

efficiently manage and control operations of its stores and supply chain Source: Choi, K (2022)

Walmart, a multinational retail company responsible for ensuring the freshness of foodproducts, has introduced Hyperledger Fabric-based blockchain technology for better traceability andmore ecosystem transparency decentralized food supply as well as addressing the risks of anyfood-related issues Using this technology system, the time required to trace product origins issignificantly reduced from 7 days to 2.2 seconds

Additionally, Walmart has deployed the Internet of Things to manage food safety IoTcollects data from sensors at each point in the supply chain, such as farms, transport vehicles,warehouses, and markets, to provide information about the status of products Through exploitingblockchain and IoT technology, the risk of food contamination or related problems can be detectedquickly or prevented more effectively

Source: Choi, K (2022)

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Retail linkage enables suppliers to realize inventory risk and keep linkage costs to aminimum Using satellite networks, analysts leverage the Retail Link data bank and communicatefuture customer needs to the supplier network This network displays real-time data from cashregisters to Walmart's suppliers.

With the help of an effective CPFR (Collaborative Planning, Forecasting andReplenishment) strategy, suppliers and manufacturers who are part of the supply chain can

accurately and completely sense demand for their coordination Source: Team, T.S (2020)

CPFR Model Source: Simplimba (2022)

Walmart has also set up a system to connect with its suppliers, called VMI (VendorManaged Inventory) In this system, the responsibility for managing goods at Walmart's warehousebelongs to the manufacturers Suppliers send goods immediately to the respective store or DC

At a basic level, demand forecasting works by analyzing historical information, creatingstatistical forecasts for existing and upcoming items as well as data from suppliers and contentmanagers set It ignores problems related to instability in the system, unforeseen markets or social

situations that give rise to changes in demand Source: Team, T.S (2020)

Walmart is a perfect example of a growing retail business that has adapted and embracedflexible supply chains, while dominating all forms of responsive merchandising

1.2 Inventory Management:a) Stocking location network:

One of Walmart's primary goals in inventory management is to ensure products reach and

stores quickly and efficiently Source: Alexander, J (2023)

By carefully monitoring inventory levels and demand patterns, companies can minimizethe risk of out-of-stocks, when a product is not available when a customer wants to buy it Thisproactive approach to inventory management ensures that customers find the products they needwhen entering a Walmart store or shopping online, enhancing customer satisfaction and loyalty

Source: Finale Inventory

Furthermore, Walmart's inventory management aims to achieve a delicate balance ininventory levels Excess inventory limits valuable capital and storage space, while insufficientinventory can lead to lost sales opportunities and unhappy customers By avoiding bothoverstocking and understocking, Walmart can optimize costs, improve profitability, and maintain ahealthy inventory turnover ratio This careful balance allows the company to stay flexible and

responsive to changing market needs Alexander, J (2023)

Accurate inventory records are essential for any retailer, and Walmart is no exception Bymaintaining accurate inventory data, Walmart can optimize its operational efficiency This includesplanning staff numbers to meet customer needs, managing storage space effectively and ensuringthe supply chain runs smoothly

Real-time visibility into inventory levels across Walmart's vast network of stores anddistribution centers enables the company to make data-driven decisions, optimizing product

offerings, strategy pricing and inventory allocation Source: Alexander, J (2023)

There are nearly 6,300 international Walmarts spanning the globe, and over 11,700 retail

units, all of which operate in 28 different countries Rickerby, M (2020) Walmart operates a vast

network of distribution centers strategically located across different regions These distributioncenters act as hubs for receiving, sorting, and distributing products to Walmart stores By having a

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network of distribution centers, Walmart can minimize transportation costs and reduce deliverytimes The company utilizes advanced automation and technology in its distribution centers to

optimize operations, increase throughput, and enhance overall efficiency Walmart (2023b)

The stocking location network in the US is complete and brings the highest efficiency of Walmart.

Source: Walmart

The table below provides a summary of Walmart’s distribution center Network in theUnited States as at 2024 q1

Source: Walmart

b) Command and control:

The company employs a range of strategies, including cross-docking, to streamline theprocess of moving products from distribution centers to stores Walmart also offers multipledelivery options to customers, including in-store pickup, home delivery, and fast shipping services.The company constantly seeks innovative solutions to improve the speed and accuracy of orderfulfillment, ensuring that customers receive their products in a timely and convenient manner

In its inventory management activities, Walmart is implementing 5 types of "cross

-docking" techniques Source: NetSuite.com (2023)

- Opportunistic Cross docking: In this type, accurate information about wherethe goods are being shipped, where they will be delivered as well as the exactquantity of goods delivered is essential

- Flow through Cross docking: According to this type, there is always a steadyflow of goods going out and into Wal - Mart's distribution center

- Distributor Cross docking: In this type of cross docking, goods will be shippeddirectly to retail stores by suppliers There is no intermediary involved in thisdistribution process

- Manufacturing Cross docking: Cross docking temporary warehouse facilitiesserve the factory and are temporarily considered mini warehouses of thefactory

- Pre - allocated Cross docking: In this type, the goods are ready to be packagedand labeled by the manufacturer and ready to be shipped to distribution centers

and from there the goods will be shipped to stores NetSuite.com (2023)

c)Leverage artificial intelligence and machine learning technology:

Technology plays a critical role in Walmart’s supply chain strategy The companyleverages advanced technology solutions, including sophisticated inventory management systems,data analytics, and supply chain visibility tools Walmart utilizes real-time data to track productavailability, monitor sales patterns, and optimize inventory levels The integration of technology

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enables Walmart to make data-driven decisions, enhance operational efficiency, and respond quicklyto changing customer demands.

By integrating efficient store replenishment, well-managed distribution centers, optimizedinventory management, streamlined transportation and logistics, and advanced technologysolutions, Walmart has built a formidable supply chain strategy This strategy has helped Walmartdeliver exceptional value to its customers, maintain a competitive edge in the retail industry, and

sustain its position as a global leader in the market Walmart (2023c)

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

When building AI/ML frameworks for holidays, we start with a foundation of data andbusiness 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 asonline searches and page views.

We also consider ‘future data’ such as macro weather patterns, macroeconomic trends andlocal demographics to anticipate demand and potential fulfillment disruptions With this combineddata, our engines identify and correct discrepancies, inefficiencies, or inaccuracies in supply chainmodels By the time our customers are ready to shop, our AI/ML data has already completed the

heavy lifting to improve inventory flow Source: Musani, P (2023)

2 Increasing Perfect Order Deliveries:

The business strategy of Walmart is geared towards cost leadership, aiming to become aretailer with lower prices every day, targeting consumers who are price-conscious To adhere to thisstrategy, Walmart has decided to eliminate intermediaries and directly approach suppliers to procure

necessary items (Walmart, 2020a)

Before placing an order, Walmart always focuses on pricing, emphasizing a single invoiceprice and only proceeding to the final transaction when certain that the company has acquired theproduct at the lowest possible cost Walmart also invests significant time in understanding the coststructure of the supplier, thereby exerting pressure on the supplier to cut costs throughout theirsupply chain Specialized truck teams enable the company to transport goods from distributioncenters to stores within just two days and replenish store shelves twice a week The quicktransportation time allows Walmart to promptly respond to changes in customer demand Toenhance the efficiency of distribution and transportation, Walmart has implemented a cross-dockingsystem, which means that finished products are directly transported from the supplier'smanufacturing facility to warehouses in large batches At these warehouses, the batches areseparated, prepared based on the specific needs of customers, and then dispatched to the respective

destinations (Walmart, 2020b)

Furthermore, Walmart is expanding various delivery services to enhance profitability andprovide convenience for customers, including: express delivery services until 10pm and Inhome

delivery services Walmart (2022) After the Covid-19 pandemic, Walmart is gradually striving to

accelerate delivery speed and utilize warehouses with the assistance of technology Walmart saidthat local fulfillment centers – compact, modular automated warehouses that store popular itemsfrom consumables to electronics in addition to fresh and frozen foods – are being built within or

adjacent to stores, enabling quicker order pick-up and delivery Source: Edelson, S (2021)

Source: Walmart (2019)

3 Sustainable Supply Chain Practice:

Walmart aims to accelerate progress on the sustainability of our own assortment as well asproduct supply chains across the retail and consumer goods industry We focus on environmentaland social issues including climate, nature, waste, working conditions, responsible recruitment, andeconomic opportunity for people working in product supply chains, as well as the availability of

affordable, safer, and healthier products (Walmart, 2023a)

3.1 Walmart Supply Chain Strategy:

Walmart has built a supply chain strategy that is renowned for its efficiency,responsiveness, and cost-effectiveness The company’s strategic approach encompasses variouscomponents that work together seamlessly to ensure the smooth flow of products from suppliers toWalmart stores and, ultimately, to the customers Let’s explore some key elements of Walmart’s

supply chain strategy: Walmart (2023d)

● Efficient Store Replenishment: Efficient store replenishment lies at the

core of Walmart’s supply chain strategy The company focuses on ensuringthat its stores are well-stocked with the right products at the right time.Walmart employs advanced forecasting and demand planning techniques toanticipate customer needs accurately By analyzing historical sales data,market trends, and other factors,

can replenish store shelves efficiently, minimizing stockouts andmaximizing customer satisfaction.

● Distribution Centers and Warehousing: Walmart operates a vast network

of distribution centers strategically located across different regions Thesedistribution centers act as hubs for receiving, sorting, and distributingproducts to Walmart stores By having a network of distribution centers,Walmart can minimize transportation costs and reduce delivery times Thecompany utilizes advanced automation and technology in its distributioncenters to optimize operations, increase throughput, and enhance overallefficiency.

● Transportation and Logistics: Walmart operates one of the largest private

trucking fleets in the world, which enables it to have control overtransportation and logistics The company efficiently manages themovement of goods from suppliers to distribution centers and fromdistribution centers to stores Walmart’s transportation network is designedto optimize delivery routes, consolidate shipments, and reducetransportation costs The company also explores alternative transportationmethods, such as rail and intermodal, to improve sustainability and in its