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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Panera Pushes Breakfast as Lunch Maxes Capacity

Panera Pushes Breakfast as Lunch Maxes Capacity

Panera is reaching maximum capacity at lunch in many locations.

To continue growing, the company is exploring opportunities in the breakfast time slot.  Panera provides alternative options to traditional fast-food, and is also trying out a new ordering app.

The key is to provide the customer with a speedy delivery process while maintaining quality.


Video Spotlight: Panera expanding on breakfast


This post is based on the CNN article, Why Panera is redoing breakfast, by Danielle Wiener-Bronner, April 15, 2019; and the YouTube video, Panera expanding on breakfast, by WETM 18 News, April 15, 2019. Image source: Getty Images/iStockphoto

Discussion Questions:

1. What are other options to expand capacity that Panera could consider that are not mentioned in the article?

Guidance: This is a good opportunity to review service capacity options.  Panera is trying to create demand to fill the capacity at breakfast.  What could Panera do to handle more lunch demand volume?  Students should mention the “tap and go” system added to the lunch service delivery system, and discussion should include an application of both level capacity and chase demand options at Panera during lunch hour.

2. Are order winners at breakfast Continue reading

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