You are on page 1of 2

3.

As Johnnie Dobbs, Wal-Mart's EVP of logistics, where would you spend your money or focus your
energy?

As Johnnie Dobbs, I would definitely invest my resources and efforts in enhancing my areas of
strength. For example, I would continue to focus on improving the supply chain and work toward
lowering the percentage of out-of-stock items at stores by redesigning the distribution center's
network, particularly regarding fast-moving merchandise. This kind of merchandise should be
shipped from dedicated "high velocity" distribution centres instead of the traditional general
merchandise distribution centers, as delays in replenishing shelves with these fast-selling items may
continue to occur. It's also important to keep extra inventory out of stores and remodel them to
enhance the customer experience in terms of checkout time, customer service, and store look. 

Additionally, I would focus on the new initiatives which have shown favorable signs after
implementation and will increase Wal-Mart's net profit margins.

1. Global Sourcing:
 Wal-Mart Global Sourcing should strive to generate value through sourcing low-cost,
high-quality merchandise to grow sales, develop efficiency, and enhance the
productivity loop - procuring products at a lower cost to sell them at a lower cost.
 Wal-Mart Global Sourcing should be committed to cultivating local skills to facilitate
direct merchandise purchases for its retail operations.
 Interacting with overseas suppliers can bring new and unique ideas to the table,
which can be beneficial, especially when you have reached saturation point.
 Many overseas suppliers have become more environmentally conscious and use
sustainable transportation methods.

2. Multi-Channel Strategy:
 Focus particularly on the competition from online competitors like Amazon.com and
begin to look for methods to use my advantage in physical store locations to
strengthen the online business (Multi-Channel Strategy).
 Increase online sales by giving customers perks and incentives for ordering online.
Online sales can help businesses cut in-store inventory and product handling costs.
 Wal-Mart will have the ability to increase brand visibility. The more their visibility
across several platforms, the more visible the brand and its products are.
 A multi-channel strategy will enable Wal-Mart to contact its customers wherever
they are, increasing the likelihood of engagement. Furthermore, having a presence
across many platforms ensures that customers are not scrambling to discover the
brand, which helps establish client loyalty.

3. Project One-Touch:
 This initiative has not only reduced expenditures by nearly $2 billion, but it has also
improved in-store inventory management.
 Improve on-shelf availability even more by collaborating with store operations and
distribution center staff. A goal of achieving over 93% on-shelf availability of
essential items in every store, motivated by performance incentives, can boost Wal-
Mart sales.

You might also like