Is Walmart Adopting a More Responsive Supply Chain Strategy?

Is Walmart Adopting a More Responsive Supply Chain Strategy?

June 10, 2019

Walmart is starting next-day delivery to catch up with Amazon.

Walmart is expected to have higher costs since all items are not stocked in a fulfillment center closest to the customer.  To reduce these inventory costs, the company will seek to stock items in regional fulfillment centers based on local market needs, and will impose a minimum dollar amount of $35 for orders.

The program rolled out to Phoenix and Las Vegas first, with Southern California next in the lineup.


Video Spotlight:


This post is based on the CNN article, Walmart is rolling out next-day delivery. Look out, Amazon, by Nathaniel Meyersohn, May 14, 2019; and the YouTube videos, Walmart launches free next-day delivery by Fox Business, May 14, 2019; and How Walmart is taking on Amazon, by CNN Business, May 17, 2018. Image source: Shutterstock / sirtravelalot

Discussion Questions:

1. What impact does next-day delivery speed have on smaller retailers?

Guidance: Students should recognize that customers are expecting next-day delivery as an order qualifier in the future.  If delivery speed becomes the domain of the major retailers, what can a Continue reading

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LoopStore Reduces Packaging, Recycling Reclaims Styrofoam

LoopStore Reduces Packaging, Recycling Reclaims Styrofoam

In recent recycling news, Terracycle launched LoopStore.com on May 21, 2019. Terracycle’s LoopStore business model is fashioned as a return to the “milkman delivery service”. Customers purchase stainless steel containers and pay for shipping. The containers are then filled with items such as Tide or cereal.  The customer returns the empty containers for refills.

The idea is to remove single use packaging from the process.  Many well-known companies have signed on to this business model already.

In other recycling news, chemical recycling by a handful of plants such as Agilyx in Portland, Oregon, offers a way of reclaiming dirty plastic and Styrofoam before they hit the world’s oceans. Chemical recycling is used on items which cannot be recycled in traditional recycling plants.


Video Spotlight:


This post is based on the CBS News article, New service sells brand-name products without plastic containers, by Meg Oliver, May 15, 2019; and the YouTube videos, New service helps consumers cut down on plastics, by CBS News, May 15, 2019, and Chemical recycling could be an industry game changer, by CBS This Continue reading

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Demand for BK’s Impossible Whopper Strains Supply

Demand for BK’s Impossible Whopper Strains Supply

Burger King’s pilot of the Impossible Whopper spread rapidly from St. Louis to three more cities.

This plant-based patty from Impossible Foods has the consistency and flavor of a traditional hamburger.  Burger King has already experienced product shortages in its test markets.

Increasing demand for its plant-based burgers has already led Impossible Foods to add a third shift and build a second production line.


Video Spotlight: Trying Burger King’s Impossible Whopper


This post is based on the CNN article, Burger King is bringing the Impossible Whopper to three new cities, by Danielle Wiener-Bronner, May 14, 2019; and the YouTube video, Trying Burger King’s Impossible Whopper, by CNET, April 1, 2019. Image source: Foodcollection

Discussion Questions:

1. Which inventory management system would be helpful at Burger King to better manage the Impossible Burger product?

Guidance: Students will likely choose the fixed-order quantity system with safety stock.  However, this is a chance to discuss whether this new product is a fad.  Should inventory be managed differently or not?

2. How can Burger King create a competitive advantage with the Impossible Whopper, given that other fast food chains are already sourcing from Impossible Continue reading

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