Repeatability and Reproductivity

Six Sigma Problem Statement

Six Sigma Problem Statement

Walmart is known to be one of the biggest retailers in the American market and the company manages varied products according to the needs of the consumers. The management of the supply chain of the company is critical in helping to meet the demand of the products at the required time. With the increased demand for the products, there is need to improve the inventory management process at the company that is known to affect the operations of the enterprise. The process is important in making sure that there is an improvement in the operations, the improvement of the inventory management process makes sure that the company remains relevant in the market.

Inventory management process helps in increasing the competitive advantage in the market, and this means that there is focus on the activities that help in the validation of the company. Walmart has increased problems in the process and the determination of the strategies that they need to apply assists in increasing the profitability of the business (Khmelnitsky & Singer, 2015). In Walmart, the improvement of technology has necessitated for the improved need to manage the inventory, and this means that they need to overcome the challenges that they face in meeting the needs of the customers. The company through the poor management of the inventory is seen to lose on profitability, and this is evident in 2013 where they lost $3 billion dollars in the process, and this was attributed to the increased rates of tax but the management of the inventory led to the lowering of the earnings of the company (Jones, 2017). The lack of control in the management of stock in the company means that Walmart falls back in competing with other retailers in the market. It means that there is need to ensure better management of inventory n helping to add value to the organization and the customers.

The use of technology assists in ensuring that there is better management, as there is an improvement in efficiency of the operations of the company. The supplementing of the different devices means that there is an increase in communication with the various employees in the management of the system used in receiving of the goods. The value of the retailers is in making sure that the inventory in the stores is accounted for and this helps in making sure that all the costs that the management incurs are minimized, and the value of the company increased. The losses that the firm made in 2013 made it essential to ensure that there are strategies that help in improvement of the efficiency of the enterprise and in making sure that there is enhanced profitability. In the case, the model that the company employed in the vendor managed model that assisted in the flow of information and this manages the levels of stock in the business (Civelek, 2016). The control and the monitoring of the goods in transit ensure that there is an awareness of the needs of the company and having the goods at the stores on time to make sure that there is the management of the demand for goods in the market. The improvement of the system helps in the minimization of the delays, as there is access to the data required in the organization. It also ensures that there is the management of the relations between the suppliers and the company.

There are different roles that the inventory systems play and this ensures that there is better management of the supply chain and helping the company to solve the cases of profitability. The change of the strategies to embrace the different phases ensures that there is regulation of the various stores in the management process and in making sure that the goods support the objectives of the company. The knowledge on the changes in demand makes sure that there is the anticipation of the changes taking place and the strategies that should be used in the improvement of the process.

References

Civelek, I. (2016). Sustainability In Inventory Management. Current Topics In Management, 1843-55.

Jones, C. (2017). Walmart making sure its inventory is gold-caliber. USA Today.

Khmelnitsky, E., & Singer, G. (2015). An optimal inventory management problem with reputation-dependent demand. Annals Of Operations Research, (1), 305. doi:10.1007/s10479-014-1600-z