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