MGT603: Systems Thinking Approach Applied to Walmart's Supply Chain
Systems thinking include both the mindset that mainly focuses on how the parts of a whole are interrelated along with the set of tools that supports the organisations to examine the complexity. Groups within the organisation learn together, creating the knowledge as well as understanding towards the organisation. The present proposal will discuss the operational issues related to inventory management in the chosen company such as Walmart.
The study would focus on the operational activities of the retail industry, US along with operational issue and inventory shortage affecting the operational function of an organisation. Purpose
The main purpose of this research study is to analyse the occurrence of the operational issues in Walmart which is related to inventory management.
According to Walmart, it has been observed that a serious slowdown in the e-commerce growth during the fourth quarter, which developed 22% compared to a 40% gain the previous year (Retail Dive, 2019). The New York Times suggested that these challenges involved warehouse stocked with seasonal items of daily products while focusing on online sales.
The major aim of this research study is to evaluate the operational issues and shortage of inventory that are damaging the bottom line of the company and is also linked with inventory management.
The main objectives of the proposal are to:
- To analyse the impact of operational issues arising in retail sector US
- To analyse the impact of operational issues over inventory management of Walmart
- To evaluate the risks and challenges facing by Walmart while managing their inventory and operational activities
- To suggest effective factors to Walmart for improving its inventory management and operational activities
Inventory management is defined as one of the huge contributors to the success of the multinational retail business. As mentioned by Lam et al., (2015) determining the size of company efficient and effective inventory management is of critical significance in the operational effectiveness. In relation to the bottom line of the company, if the size of a retail business can achieve certain kinds of a financial blow from a huge lack of inventory control, determining the kind of damage it could do to the small and medium businesses (Adeniyi & Okoye, 2017).
In relation to the research philosophy, the researcher will be continuing with the positivist philosophy that is crucial in dealing with the nature, sources, and knowledge of the topic. As per the research approach, the researcher will be continuing with a deductive approach that will help in developing the relevant information in the context of the chosen research issue. Furthermore, the researcher will be a continuing descriptive design for this research study. For making the research more creative and relevant the researcher will be continuing with both primary and secondary sources of data collections. For further analysis, the researcher will target 100 respondents as the sample size.
The analytical study would be made based on the survey and interview format that will help to collect unbiased data from the chosen respondents from the selected sample area. Further, this analytical finding would help the researcher to lead the entire study towards a conclusive end with respective recommendations. This will help the reader to use this research study as a preliminary study for related issues in the future.