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:
- doubling stores as warehouses, allowing online shoppers to order at the last minute and pick up orders from self-service stations
- using machine learning techniques to restock frequently ordered items and prevent stock out
- equipping employees with an optimization app that charts employee’s shortest path to fulfill eight different orders at once
- using robots to stroll around store aisles to alert a store employee to restock items
- 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
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