Operation

Management
The case of
Walmart
Presented by Group 5
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01 Nguyễn Bùi Thanh Đức

02 Trần Bá Đạt 05 Huỳnh Ngọc Gia Vy

03 Đinh Ngọc Diễm Quỳnh 06 Lưu Nguyễn Ngọc Minh

04 Phan Minh Hiếu 07 Lê Đức Huy

The Objectives
of Operation
Management
Walmart’s
example
 Ngọc Minh

Low cost and

low selling
prices

Maximize efficiency Design goods to be

Minimize production
of its retail service easy to
costs
operations mass-produce
Ngọc Minh

Vendor-managed Just-in-time
inventory cross-docking

Suppliers access
Minimize the size
the information
MAXIMIZE THE of its inventory
systems and
OPERATIONAL
decide whether to
EFFICIENCY
deliver goods Support
cost-minimization
Minimize the
efforts
problem of
stockouts
 Đức Huy
Improving the quality
● This three-tiered strategy meets quality management objectives
in strategic decision areas of operations management
● The lowest tier describes the bulk of customers' minimal quality
requirements. Most of Walmart's brands, such as Great Value,
remain at this tier.
● The middle tier denotes the average market quality for low-cost
retailers. This tier is utilized for some products as well as Walmart
employees' job performance targets, particularly sales personnel.
● The top tier specifies quality levels that exceed retail industry
market averages. This tier is only applied to a subset of Walmart's
outputs, such as Sam's Choice items.
 Đức Huy
Improving the quality
● Currently, Walmart has built the best enterprise
resource planning system and is working to improve
its present ERP (Enterprise resource planning)
system to make it more efficient.
● The system has improved its cooperation with
suppliers, which has resulted in cost reductions,
increased earnings, and increased consumer
satisfaction by offering substantial discounts.
 Đức Huy
Improving the quality

Walmart's ERP model

 Đức Huy
Improving the quality
● Besides the low prices, and the
selection of goods, quality
customer service is one of the
factors that will keep the
consumers coming back.
● Walmart uses different innovated
tools in order to keep their
customer satisfaction high. One of
their main tools is keeping their
prices low.
 Đức Huy
Customer satisfaction

Walmart believes that in order to keep satisfied customers and employees, the organization has to present high
quality products and low prices, and show both customer and employee appreciation at all times.
 Đức Huy

Customer satisfaction
● Walmart has open suggestions boards open
to stay informed on what its customers and
employees would like to see within their
stores. Walmart believes that the public and
their employee family have a right to have the
best products and services to help them live
their daily lives.
● Strategic Plan and Strategic Objectives
with Walmart being one of the leading retail
industries around, it’s very important for their
customer service to be top notch, to keep the
customers coming back and keep them
satisfied.
 Đức Huy

Customer satisfaction
● A friendly employee is another tool Walmart uses to
keep their customers satisfied. This is accomplished
through keeping their employees satisfied.
● Having available stock and other resources on hand
allows their employees to have what they require at
their disposal and this makes both the employees
happy and also their customers.
Trends of
Operation
Management
1. Artificial intelligence and Bá Đạt

machine learning
● Artificial intelligence (AI) is a broad scientific discipline at the
intersection of computer sciences, statistics, operations
management, mathematics, humanities, social sciences, and
philosophy.
→ Perform tasks that typically require human intelligence
● Machine learning (ML) systems can learn from data, identify
patterns from large numbers of examples, make decisions based
on structured feedback, and then perform tasks on their own.
→ Improve the performance and problem-solving skills with
minimal human intervention.
 Bá Đạt
Application: WALMART
“EDEN” Collect vast amounts of data regarding
shopping habits, basket composition, andeven
browsing patterns

Provide information regarding future offerings,

promotions → manage their supply chain
operations, inventory fulfillment, and
distribution systems.

Uses an ML algorithm with image recognition

capabilities called “Eden” to classify products
according to their freshness and to predict
when they will go bad.
 Bá Đạt
Application: WALMART
“Social Genome” is a Big Data analytics solution designed by Walmart to provide
customers better services through analysing customers’ activities on different social
media.
→ Creating insight of customer’s preferences and behaviors
→ Walmart is able to inform the direct target customer about one product’s information

2. Serverless computing and
cloud storage
“Serverless computing” is a
cloud-based model that allows you
to run applications and services
without managing or provisioning
servers.
→ Provision, manage, and scale the
cloud infrastructure that runs the
application code.
→ Allows the business to pay for
“on-demand” services and be
charged only for the time the service
runs.
Bá Đạt
“Cloud storage” enables storing data
and files on the internet through a
cloud computing provider that you can
access through network connection.
→ Removes the need to buy and
manage your own data storage
infrastructure
Examples: Icloud, Google Drive,
Dropbox,...
 Bá Đạt
Case: Coca-Cola
Coca-Cola’s
accountant
Whenever a 04 recognizes cost and
beverage is
receivable asset for
purchased
each transaction

01 03

The payment AWS Lambda

gateway calls the function executes
AWS API Gateway the transaction
02

The ability to pay per request rather than operating at full capacity
↓
Cutting expenses
 3. Automating Processes Bá Đạt

● Set of techniques and strategies aimed at streamlining your

operation by removing the need for manual, repetitive tasks
Automating
Process

Business process Workflow

automation (BPA) automation

Focuses less on end-to-end

End-to-end systems for
automation, and more on
streamlining the flow of
automating similar core tasks
resources within a specific,
that are repeated in multiple
discrete function
processes.
 Bá Đạt
The benefits of automating
Security,
Efficiency
compliance

Transparency &
Resourcing,
oversight
planning, and
procurement
Employee Accuracy &
retention consistency
 Bá Đạt
Applications
Employee onboarding: OCS Group
automates their onboarding process to
make it quicker and more user-friendly
for their employees.
=> Reduce the time it took to create a
new employee ID, as well as enabling
immediate payment.

Supplier onboarding: Adidas had

multiple silos across departments,
including e-commerce, operations,
marketing, finance and retail, which
was slowing down their time to market
and obscuring their supply chain
management.
 Bá Đạt
4. Mobile and digital communications
“Digital communication” includes any form of communication that
takes place digitally, primarily on mobile device.
→ Due to COVID-19 global outbreaks, managers need to transform
their programs to streamline processes whenever possible.
→ If your communication channels are not mobile, it may pose a
disconnection, and the workflows are facing out of track.
Instant information Greater flexibility
sharing

Increased productivity
Benefits Better customer
experience

Improved information
Streamlined
retention
collaboration
 Bá Đạt
Let’s view some applications

Google
Zoom Workspace Connecteam
 Bá Đạt
5. Culture and workplace experience
“Gen Z employees are really important to us
because, let’s face it, they are the future of
our company. But you need to understand
and meet their expectations, which differ
from other generations.” says Sally
Henderson, Group Head of Talent at Zurich
Insurance Group.

→ The best way to manage a GenZ is to listen

to their ideas, give them a chance, and
encourage them to actively engage in their
work through flexibility and transparency
 Bá Đạt
6. Focus on employee wellbeing
● A positive culture prioritizes wellbeing, clear tasks, motivation,
and benefits like financial support, health aids, and work-life
balance measures.
- Mental Health Program and
Wellness Focus: supports
employee mental health through
therapy, coaching, and stress
management resources.
- Flexible Time-Off Plan
- Expanded Family Care Leave:
offers additional support to working
parents through expanded family
care leave.
 Bá Đạt
7. Use of enterprise data

Accessing
reliable data

compliance
Safety and
Scalable
data
=> Employees have the
precise and timely Various
information they require that sources

is regulated, standardized,
and secure.
 Bá Đạt
8. Focus on customers
- Collect feedback regularly
- Make customer service metrics part
of your company goals
- Integrate customer-focused culture
into your company’s business
model
- Make every employee a customer
champion
Business Customer

- It’s Essential for Customer Retention

- Customer-centric Companies are
More Profitable
- Brand advocacy
 The Importance of
Gia Vy

Operation Management
Reduce costs of producing products &
services by being efficient

Streamlined
processes Reduce time, effort, and resource waste,

ultimately leading to lower production costs.

Identify and eliminate any
redundant or unnecessary steps
in its operations.

Logistic ‘ They can accomplish this by integrating digital

platforms, robotics, and data analytics to simplify
Use automation and technology to
improve productivity and lower operations and enhance efficiency.
labor expenses.

Gia Vy
 Reduce costs of producing products &
services by being efficient

Supply chain
Establish strong relationships with suppliers,
negotiate favorable terms
management
Efficient supply chain management
ensures timely procurement of materials
and resources at the best possible prices.

Help employees perform tasks more Employee

efficiently, leading to higher productivity,
less errors, and improved cost-efficiency.
training
Improve employee skills and
knowledge through training
programs.

Gia Vy
Gia Vy
Increase revenue by increasing
customer satisfaction through quality

Evaluate
Current
Quality Personalize
Customer
Enhance Experience
Quality &
Product Service
Quality Commitment
Gia Vy
Increase revenue by increasing
customer satisfaction through quality
Conduct a thorough assessment of the
existing quality and service standards.

Evaluate
Current Quality
Personalize
Customer
Experience
Enhance Quality &
Product Quality Service
Commitment
Gia Vy
Increase revenue by increasing
customer satisfaction through quality

Prioritize enhancing the quality of its

Evaluate products. This can be achieved by
Current Quality ensuring that all products sold meet high Personalize
standards. Customer
Experience
Enhance Quality &
Product Quality Service
Commitment
Gia Vy
Increase revenue by increasing
customer satisfaction through quality
Implement strategies to create a personalized
shopping experience for its customers. This can
include providing tailored recommendations
Evaluate based on past purchases.
Current Quality
Personalize
Customer
Experience
Enhance Quality &
Product Quality Service
Commitment
Gia Vy
Increase revenue by increasing
customer satisfaction through quality

Effectively communicate its commitment

to quality and excellent service through
Evaluate
various channels. This can include
Current Quality
Personalize advertising campaigns, social media,
Customer branding initiatives.
Experience
Enhance Quality &
Product Quality Service
Commitment
Reduce need for investment by increasing the effective Minh Hieu
capacity of the operation

Walmart’s operations management

involves a variety of approaches that are
focused on managing the supply chain and
inventory, as well as sales performance.
The company’s success is significantly
based on effective performance in retail
operations management
Reduce need for investment by increasing the effective Minh Hieu
capacity of the operation
Walmart’s management covers all the 10
decision areas of operations management.
Walmart’s application of the 10 decisions
of operations management reflects managers’
prioritization of business objectives
In turn, this prioritization shows the
strategic significance of the different
decision areas of operations management in
the retail company’s business
 Minh Hieu
Reduce need for
investment

Focus on optimizing its supply chain and inventory

management

Implementing a just-in-time (JIT) inventory system

Reduce its inventory carrying costs

Minh Hieu

Reduce need for

investment

Implement a blockchain-based system

Track food products from farm to store

Improve food safety and reduce waste

 Minh Hieu

Increasing effective capacity

Using data analytics

Identify high-traffic areas in stores and optimizing

product placement

improving its store layout and design to maximize

space utilization
Minh Hieu

Increasing effective capacity

Implement a mobile checkout system

Allow customers to scan items with their smartphones and

pay using a mobile wallet
 Minh Hieu
Being innovative in how it uses
its physical resources

Set a goal to achieve zero waste in its operations by

2025

Implement a number of initiatives to reduce waste across

its supply chain

Invested heavily in renewable energy sources such as

solar power and wind power
Enhance innovation by building a solid base of Minh Hieu
operations skills and knowledge within the
business

Build a solid base of operations skills

and knowledge within the business

Deal directly with manufacturers

 Minh Hieu

Enhance innovation by building a solid base

of operations skills and knowledge within the
business
Leverage its bargaining power with suppliers
to drive down costs and innovate in supply
chain management
Use of automation, robotics, and artificial
intelligence to improve efficiency and
reduce costs
 Threats for
Vietnam from
future trends
 Competition from foreign Thanh Đức

companies
Vietnam is still developing
Vietnam is currently behind other developed countries in terms
of technology and business models. To remain competitive,
Vietnamese companies must learn from their competitors and
change their entire operations and organizational culture

Easy expansion from competitors

Vietnam is open for foreign investments.

Vietnamese firms can be at a competitive disadvantage

 Skill gap in workforce Thanh Đức

New demands
Future trends of operation management requires workers with
new skills and knowledge. Vietnam needs collaborative efforts
from companies, universities and the government to bridge the
gap

Initial productivity losses

Vietnamese firms may struggle to find workers with
necessary skills, leading to productivity losses
 Adjustments to regulations Thanh Đức

New complex regulations

When trends are introduced, the government will add new
regulations to control misuse and encourage best practices. It
can take a long time for businesses to adjust and get used to
these changes. Failing to adapt means elimination.

Increase in operating costs

New complex regulations is likely to add to the cost of doing
business in Vietnam.
 Cybersecurity threats Diễm
Quỳnh

Dependence on information
Vietnamese businesses will be more reliant on technology,
causing them to be more vulnerable to cyber attacks.

Vietnam is not well-prepared

Vietnamese firms may not be fully prepared for cyber
attacks, potentially leading to financial losses and
operational disruption
 Adapting to the new workforce Diễm
Quỳnh
Catering to the new generation of workers
Gen Z employees in Vietnam want jobs with flexible schedules,
do not like to follow rigid rules and want to participate in the
decision making process. Furthermore, they are more likely to
switch jobs rapidly

The needs to evolve a new operating style

Employers must quickly adapt, reshape their culture and
redesign their operations to retain talents. Another threat is
the need for companies to focus on employee wellbeing,
safety, and health.
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