Name: Vatsal Thacker

Roll No: C-36

Subject: DEC

Under the Guidance: Amit Sir

TOPIC: Walmart Digital Supply Chain

Introduction:
Walmart is very open about what it needs to do to be more competitive with
Amazon. Following the fourth quarter results, a top executive at Supply spoke at a
high level about his chain and omnichannel strategy. Walmart executive vice
president Brett Biggs summed up the investment, saying retailers are investing in
improving fulfilment capabilities, supply chains, automation and technology. ,
retailers can increase their e-commerce reach while reducing both delivery time and
costs.

Walmart is investing in warehouse automation in its distribution centers to deliver

aisle-ready pallets and department-ready pallets to stores. Walmart is also investing
in its pickup and delivery capabilities. On March 21, David Guggina, his senior vice
president of Supply Chain, Products, and Engineering, elaborated on the details of his
supply chain journey at Blue Yonder's Virtual Icon Users conference.

Blue Yonder is a leading provider of supply chain software solutions, including

several solutions mentioned in this article: demand management, inventory
optimization, replenishment, warehouse management, warehouse control systems,
yard management, and transportation management.

Early investment in Supply chain Management:

Walmart’s focus on optimization is one of the largest factors contributing to the
brand’s supply chain success.

The retail giant is constantly striving to improve existing systems and processes to
create an optimized and efficient supply chain to provide their customers with
“everyday low prices” — one of the company’s unique (and renowned) selling points.

Among the many supply chain optimization strategies, the company places great
emphasis on omnichannel — multiple channels available to its customers. Walmart’s
Marketplace creates a home for thousands of retail stores with the ultimate goal to
save time for the consumer.
Walmart also provides multiple marketplace fulfilment options, such as in-store
pickup, ship from store, and even digital pharmacy fulfilment. Globally, Walmart
offers 7,000+ pickup locations and 5,000+ delivery locations.

Walmart's fiscal year 2021 ended on January 31st. With sales of his $555 billion, the
world's largest retailer grew his 6.8%. Walmart's operating profit was $22.5 billion, or
4.1% of sales.

Amazon is small. Amazon's fiscal year ended on his December 31st. The company
had retail sales of $341 billion. Amazon has low profit margins. Retail operating
income was $9.4 billion, or just 2.8% of sales. But at 38% annual growth, it's growing
much faster than Walmart. At this rate, it won't be long before Amazon becomes the
world's largest retailer. Globally, e-commerce is growing much faster than brick-and-
mortar sales. Walmart knows this, and brick-and-mortar retailers that don't have a
strategy to drive sales based on an omnichannel strategy are going out of business
more and more often. Walmart has been moving to omnichannel for several years to
accelerate growth.

For Walmart, 'omnichannel' is defined as a customer-centric experience that

seamlessly integrates e-commerce and retail into his one product that saves
consumer’s time. Walmart's U.S. e-commerce sales contributed about 5.4% of
comparable sales last year. Walmart defines an e-commerce sale as one initiated
online but accomplished through the use of a dedicated e-commerce fulfilment site
or its stores. Omnichannel in-store services include in-store pickup, in-store shipping,
and digital pharmacy fulfilment options. The company has over 7,300 of his pickup
locations and over 5,200 of his delivery locations worldwide.