Discuss about the Operation Management for Restocking of Shelves.
The first change that Wall-mart can bring is to improve the look of their store is to lower their shelf size in the entrance and reduce tidiness in the store by cutting down on the number of products. Customer complaint that the restocking of shelves is not fast enough and it lacks cleanliness and tidiness. As a result, the store design and the layout have to compromise with the customer convenience. Additionally, the customer also feels that the in-house layout is not well-maintained and representative enough to attract the customer. Taken for instance, in apparel section, there is no fashion message and it is not well assorted by style, size, or color due to less space. Thus, stocking of huge products in the inventory and use fewer racks in the physical stores will be an improvement in the appearance of the warehouse. All the stock items can be displayed digitally and on being requested it can be brought to the customer from the inventory.
It is evident that from the first change, it will wipe out significant revenue and thus it is important to increase the product n a different way so that more products can be served to the customer. Thus, formulating more inventory space for storing all kind of the goods will be a move for improvement. Moreover, many experts argued that Wal-Mart need to improve traffic-driving side businesses for care clinic, financial services and gas facilities by designing their layout and address their concern towards the traffic pattern and site plans. The primary reason these experts provides is that “recently opened stores are not quite as good as prior ones." Taken for instance, in the US, the new Wal-Mart-store in Creekside Park faces difficulty with their auto center that faces the Timber Creek Elementary School. So, a step for improvement is the collaboration with the coalitions and Creekside Park residents.
Justification for improvement in layout
The justification regarding with the first change is that Wal-Mart sells different sizes of the same brand and they can limit the size of the same products to two to three. This will reduce the tidiness and enhances the cleanliness of the store. In addition to that, by lowering the size of the shelves at the entrance or checkout points will be beneficial as it can provide shoppers to see the whole store when they come for shopping and can navigate their destination easily. In addition to that, the implementation of digital shopping option in the physical store of Wal-Mart will allow the users to room to play and can navigate easily to their destination on the digital menu boards (See Appendix, Figure 1). These menus can also perform as an entertainment source like watching TV and see how their cars are being served outside.
The justification regarding the second improvement is that effective collaboration ensures the support of the alliance and other construction in the neighborhood and affects fewer natural resource. The collaboration of the unified community finds solutions that mitigate risks caused by the construction of the new inventory of the physical store.
Ahire, Sanjay L., Manoj K. Malhotra, and John B. Jensen. "Carton-Mix Optimization for Walmart. com Distribution Centers." Interfaces 45.4 (2015): 341-357.
Karrholm, Mattias. Retailising space: architecture, retail and the territorialisation of public space. Routledge, 2016.
Peters, Anicia Nicola. "Influence of video food ads in digital menu boards and healthy eating decisions." (2014).
Roberts, Bryan, and Natalie Berg. Walmart: Key Insights and Practical Lessons from the World's Largest Retailer. Kogan Page Publishers, 2012.