Did you know 90% of Americans live within ten miles of a Walmart? To compete with Amazon, Walmart is leveraging its physical footprint. Its strategy includes:

1. doubling stores as warehouses, allowing online shoppers to order at the last minute and pick up orders from self-service stations
2. using machine learning techniques to restock frequently ordered items and prevent stock out
3. equipping employees with an optimization app that charts employee’s shortest path to fulfill eight different orders at once
4. using robots to stroll around store aisles to alert a store employee to restock items
5. using robots to unload trucks and sort boxes, giving priority to out of stock items for easier re-shelving

This post is based on the Fast Company article, The clever way Walmart is trying to beat Amazon, by Katharine Schwab, March 19, 2019. Image source: Shutterstock / Jojje

Discussion Questions:

1. What operations strategies does Walmart use to compete with Amazon?

Guidance: Building on its vast physical presence, Walmart is competing with Amazon for online shoppers in two areas: delivery and ordering.

Walmart uses its warehouses for last-mile delivery saving storage and delivery costs while providing online shoppers with convenient and fast order fulfillment options.  Continue reading →