How Walmart tracks its customers
pooling principle
What is Walmart's business strategy?
Inventory pooling supply chain
What is pooling in the supply chain?
Solution
Methods Used To Match Resources With Variable Demand
Walmart dominates the retail industry through supply chain management and innovative technology. It innovated strategies for effectively matching available resources to customer demands (Nguyen, 2017). One of the ways is the pooling method, which involves consolidating resources in a single centralized system in response to customer demands, especially for those shopping online and in-stores. Walmart also uses a separate selling strategy, for instance, customers receive exactly what they want from the store near their location because Walmart has many physical stores allowing it to assign resources to specific types of customers.
Pooling Resources So That Each Resource Unit Is Available For Processing Any Customer.
The concept of pooling resources (through a location or product) refers to combining multiple resources or markets to reduce customer uncertainty, improve efficiency and match supply and demand to sustain a competitive advantage (Simchi-Levi, 2013). Walmart is doing this by having single products that satisfy different needs of customers and by combining its physical stores to its e-commerce and forming an “omnichannel” a technology where customers can have the best shopping experience whether from their mobile phones, websites, or in-store interactions. This method is known for increasing coordination of resources and customer satisfaction since there is a positive perception by customers from the low prices paid, the product variety, and better shopping experience.
Assigning Specific Resources To Specific Types Of Customers.
Walmart also uses a decentralized system to serve more customers with specific resources. It partners with key players in the value chain to benefit from the synergy (Lim, 2017). Costs are reduced and the risk is split. For example, Strategic partnerships and communication networks between Walmart and its suppliers and distributes lead to better use of the available resources. This also results in competitive advantages, which Porter (2017) discusses, by offering the right products to specific customers and meeting the demands by having warehouses in so many cities – closer to retail shops. Walmart also invests in management system software and automation technology to cut costs and operate efficiently.
Strategies That Can Improve The Perception Of Process Performance include:
Nurturing a customer-centric culture through employee training and the use of mobile applications to assist employees to deliver the best customer experience. Furthermore, Identify drivers to satisfaction through feedback from the customers, analytics, and solving issues intermediately.
References
Thi Thu Ha, Nguyen. (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. 29. 102-117. 10.22367/jem.2017.29.06.
Simchi-Levi, E. (2013). The Most Important Concept in Supply Chain Management - Risk Pooling - Supply Chain 24/7. Supplychain247. https://www.supplychain247.com/article/the_most_important_concept_in_supply_chain_management_-_risk_pooling/ops_rules_management_consultants
Lim, Stanley Frederick W.T. & Wang, Lina & Srai, Jagjit. (2017). Wal-Mart's Omni-channel Synergy. 30-37.
Porter, M. E. (2017). Competitive Strategy. Van Haren Publishing.
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