Walmart Going Toe-To-Toe With Prime?

Walmart Going Toe-To-Toe With Prime?

November 12, 2018

Walmart’s supply chain is becoming more customer-centric. Starting in November, customers can expect free two-day shipping with orders over $35 and in-store returns of items purchased online.

The in-store returns, in particular, are giving Walmart a competitive edge over Amazon which lacks a strong physical presence.

This post is based on the Supply Chain Dive article, Walmart will expand 2-day shipping, in-store returns, by Shefali Kapadia, October 23, 2018 Image source: © David Schaffer / age fotostock.

Discussion Question:

1. What are the strategic impacts of Walmart’s service design changes?

Guidance: Free two-day shipping with orders over $35 and in-store returns are offered on items purchased from both Walmart and its third-party sellers.  These changes provide Walmart customers with a more seamless and uniform retail experience than its competitors like Amazon.

2. What are the supply chain impacts of Walmart’s service design changes?

Guidance: Faster shipping and easier returns will increase the demand for trucking capacity and present a major logistical challenge to Walmart’s supply chain

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