OPERATIONS

MANAGEMENT
The case of Walmart
Presented by Group 5
 GROUP 5 MEMBERS

01 Nguyễn Bùi Thanh Đức

04 Huỳnh Ngọc Gia Vy

02 Trần Bá Đạt
05 Phan Minh Hiếu

03 Đinh Ngọc Diễm Quỳnh

06 Lưu Nguyễn Ngọc Minh

07 Lê Đức Huy
Ngọc Minh
Ngọc Minh

01
About Walmart
ç
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Overview
Of Walmart
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Retail Business Wholesale Business

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At store Online
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According to Fox Business, Walmart has:

2.2 million employees 12,000 stores 28 countries

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Only 17 years later

since it was founded
2001
Nearly $1 billion
daily turnover
1993
$1 billion weekly
turnover
1979
$1 billion annual
turnover
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Housewares Small appliances Electronics

Jewelry Games Pharmaceuticals

product
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Best-selling item
Over 1.5 billion pounds of
banana are sold each year
Operations
Of Walmart
 Thanh Đức

Let customers shop anytime and anywhere, online and in

stores, with the cheapest price on the market and
seamless convenience

Main goals:
● Price leadership
● Convenience
 Thanh Đức
Overview of Walmart’s operations

Input Processes Output

Key resources

● Mainly finished products ● Physical stores

chosen from suppliers ● Supply chain
● Distribution and storage Cheap retail
● Sales personnel
● Information on system products and
customer behaviors, ● E-commerce store and services
needs the mobile app
● Human resources.
 Thanh Đức
Walmart’s operation processes

01 02 03 04 05

Analyze Select Transport Set up & Sell Deliver

Set up
Analyze the Find suitable Transfer the
Products are Walmart's
market and the wholesale goods from the
unloaded, set delivers the
customers’ suppliers and supplier to the
up and goods to the
demand for buying large Walmart stores
organized in customers
certain good amounts of using their own
the storage
different carriers
buildings
products.
 Thanh Đức
1.Analyze the market
Operation solution
Understand the customers
with AI and Big Data analysis

Operation goal
Figure out what the customer
wants to buy and how best to
get it to them

Resources BrainCorp autonomous floor scrubber

Huge amounts of data from:
Capturing images of every item in the store.
● point-of-sale transactions
● social media, Takes more than 20 million photos of
● online browsing behavior everything on the shelves every day while
● supply chain management
systems.
scrubbing the floor
 Thanh Đức
2.Select suitable suppliers
Operation solution
Strict standards.
Track suppliers with data

Operation goal
identify vendors who can provide
them with the best price and can
meet their high-volume demands

Resources Supplier Performance Scorecard

Public 46-page rule books for suppliers With the Supplier Scorecard system, suppliers can see the sales of their items
with standards for each categories week-by-week and the numbers that Walmart uses to evaluate suppliers.

The Supplier Performance Scorecard Data transparency

Full access to their point-of-sale
data Suppliers have full access to Walmart’s inventory to constantly renew
shelves with the right products at the right time → Cut storage costs
 Thanh Đức
3.Transporting goods to store
Operation solution
Cross-docking
Use internal carriers

Operation goal
Cut costs from their
supply chain operations

Resources

Walmart's transportation has

a fleet of 11,000 tractors,
80,000 trailers and more
than 13,000 drivers.
 Thanh Đức
4.Organizing goods on shelves
Operation solution Smart
scanning
Augmented reality app AR app
for staffs

Operation goal Aim a phone at

a wall of
Staffs always know where inventory
the right products are boxes, and the
app will put a
Resources green
checkmark
Devices with the app installed next to the
Database of inventory exact box
containing
goods for
restocking
 Thanh Đức
5.Delivering goods to customers
Operation solution Operation goal
Combining online and in-store Get products to customer most
shopping. Various delivery services conveniently

InHome grocery delivery Grocery Pickup

Combines the convenience of online shopping with the
Customers place grocery orders online, then ease of never leaving the car. Customers simply place
have their groceries delivered straight to their order online and grab goods from chosen stores
refrigerator without needing to come home.
Ngọc Minh

What
makes
Walmart
different?
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Everyday Low Price

❖ Largest retailer in the US

❖ It raked in nearly $460 billion in retail sales in 2022 (via
National Retail Federation).

The more
The more powerful
The more sales positioned it is to
a retailer it
Walmart makes negotiate for low
becomes
prices
 Diễm Quỳnh

WALMART’S DIFFERENTIATION

LOW PRICE GUARANTEE

Customizing stores
Walmart Supercenter
Walmart Discount Store
Walmart Neighborhood Market
Careful selection Digital + physical
Set careful and strict shopping
selection standards for Creating an experience that lets
suppliers and their customers shop anytime,
facilities anywhere
Walmart
 Diễm Quỳnh

+11,000
Tractors

80,000
Trailers

13,000
Truck drivers
 Diễm Quỳnh

Achieved Results

E-commerce Efficient access

E-commerce fulfillment Fulfillment centers are
centers can ship and strategically located across
handle millions of items. the U.S
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02
Definition
About OPERATION MANAGEMENT
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Definition

Operations Operations Operations

Function Manager Management
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Definition
Arrangement of the resources to the
production and delivery of its
products

Operations
Function

- responsible for fulfilling customer requests

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Definition

Ones have particular

responsibility for managing
all the resources that
comprise to Operation
Operations Function
Manager
 Gia Vy

Definition
Activities, decisions and
responsibilities of operation
managers

Operations
Management
 Gia Vy

IN THE PROCESS

WITHIN
PROCESS

INPUT OUTPUT

Process
 Gia Vy
IN THE PROCESS

Transformed resources
- Materials
- Information
- Customers
INPUT

Transforming resources

- Facilities
- Staff
 Gia Vy
IN THE PROCESS

Materials Information Customer

processing processing processing

Location, Information Physical properties,

possession, properties, achieved location,
achieved materials informations physiological state

WITHIN
PROCESS
 Gia Vy

IN THE PROCESS

Can be differentiate between

OUTPUT products and services based
organization
 Minh Hieu

Operation
manager
Responsible for
managing the resources
that comprise the
operation functions
4 headings Minh Hieu

01 02 03 04

Directing Designing Delivery Developing

Understand of operations, Determining the The delivery of Develop the

processes, strategic physical form, shape services and capabilities of their
purpose, performance, andand composition of products from processes to
an appreciation of how operations and suppliers to improve process
strategic purpose is processes customers performance
translated into reality
 Review

Operation management is the activity of

managing the resources that create and deliver
Operation
management
services and products.

Minh Hieu
 Automobile assembly
factory
Operations management uses machines to
efficiently assemble products that satisfy
current customer demands.
 Minh Hieu

Physician
Operations management uses
knowledge to effectively diagnose
conditions in order to treat real and
perceived patient concerns
 Minh Hieu

Management
consultant
Operations management uses
people to effectively create the
services that will address current
and potential client needs
 Disaster relief charity

Operations management uses resources to

speedily provide the supplies and services
that relieve community suffering.

Minh Hieu
 Minh Hieu

Advertising
agency
Operations management uses
staffʼs knowledge and experience
to creatively present ideas that
delight clients and address real
needs
Specific activities of operation management Bá Đạt

Planning Organizing Supervising

● Improving the
● Designing the
● Understanding the performance of
operation’s
operation’s strategic Walmart operation
products, services
objectives management
and processes
● Planning the ● The broad
● Developing an
operation strategy responsibilities of
operations strategy
Walmart operation
for the organization
management
Understand the operation’s strategic objectives Bá Đạt

● Operation strategy concerns the

pattern of strategic decisions and
actions which set the role, objectives
and activities of the operation
● Walmart's operational strategy focuses
on cost leadership, economies of scale,
efficient supply chain management,
and technological integration
 Planning the operation strategy Bá Đạt

● The process of clarifying the various objectives and decisions that make up the
strategy, and the links between them.
● It should provide a set of actions that, with hindsight, have provided the ʻbestʼ
outcome for the organization.
 Planning the operation strategy Bá Đạt

● Boost store efficiency by connecting in-store merchandising with

“win, play, show” which guide merchandising assortment decisions
● Allows Walmart be more selective about which product to carry and
more committed to sell in high volume.
Designing the operation’s products, Bá Đạt

services and processes

● “Design” is an activity that envisage the
general shape and intention of something
before getting down to defining its details
=> Positioning company according to its
volume and variety characteristics
Designing the operation’s products, Bá Đạt

services and processes

● Emphasizes minimal production costs
● Mass-production
Đức Huy
 Đức Huy
Developing an operations strategy for Walmart

● Keeping the Operational Costs Low

● Competitive priority “Low prices, every day”
 Đức Huy
Developing an operations strategy for Walmart

Human resource & Employee training

 Đức Huy
Developing an operations strategy for Walmart

Vendor-managed inventory
 Đức Huy
Developing an operations strategy for Walmart

Vendor-managed inventory
 Đức Huy

Improve the performance of Walmart operation management

Economy Everyday
of scale low price Global sourcing

Walmart leverages its Walmart consistently offers Walmart sources

Despite being red, Mars is a Venus has a beautiful
large size and bargaining low prices to customers products from all
very cold place name, but itʼs terribly hot
power to negotiate low rather than frequently around the world to
prices with suppliers, updating sales or discounts. secure the best deals
keeping costs low and the lowest prices
 Đức Huy
Improve the performance of Walmart operation management

Cross-docking Technological Sustainability

logistics innovation initiatives

Minimize inventory storage Electronic data interchange, Invests in sustainability

costs being
Despite and increase supply
red, Mars is a automatic
Venus hasproduct reordering,
a beautiful measures and programs to
chain efficiency.
very cold placeIncoming E-commerce
name, digital
but itʼs platforms
terribly hot reduce waste, conserve energy
products are shipped and resources, and implement
directly to outbound trucks more environmentally friendly
as they arrive, reducing practices in its operations.
stock in warehouses.
 Đức Huy
The broad responsibilities of Walmart Operation management

Operation Manager

● Supervises and manages by giving direction,

monitoring performance and providing feedback
● Have responsibilities in both strategy and
day-to-day production, in either manufacturing
or services.
● Involved in the supply chain management
● The cohesiveness between the manager and
employees
 Đức Huy
References
1. Pant, R., & Pant, R. (2022b, December 13). Walmartʼs business strategy and competitive advantages. Management Enthusiast -.

https://managemententhusiast.com/walmarts-business-strategy-and-competitive-advantages/#:~:text=Walmart%20has%

20achieved%20leadership%20position,operational%20and%20overhead%20costs%2C%20etc

2. Smithson, N. (2023). Walmartʼs Operations Management: 10 Strategic Decisions & Productivity. Panmore Institute.

https://panmore.com/walmart-operations-management-10-decisions-areas-productivity-case-study-analysis

3. Gitnux. (2023). Walmart Operational Strategies Exposed - Guide 2023. GITNUX.

https://blog.gitnux.com/strategies/walmart-operational-strategies/

4. Operations Manager I. (n.d.). Walmart Careers.

https://careers.walmart.com/us/jobs/WD1567602-operations-manager-i

5. A quick guide to operations management responsibilities - indeed. (n.d.).

https://in.indeed.com/career-advice/finding-a-job/operations-management-responsibilities
Thank you
for
listening
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