{"id":233,"date":"2018-01-29T23:07:03","date_gmt":"2018-01-30T04:07:03","guid":{"rendered":"http:\/\/blog.richmond.edu\/mgmt340-03\/?p=233"},"modified":"2018-01-29T23:12:24","modified_gmt":"2018-01-30T04:12:24","slug":"wal-mart-set-to-fine-suppliers-for-late-deliveries","status":"publish","type":"post","link":"https:\/\/blog.richmond.edu\/mgmt340-03\/2018\/01\/29\/wal-mart-set-to-fine-suppliers-for-late-deliveries\/","title":{"rendered":"Wal-Mart Set to Fine Suppliers for Late Deliveries"},"content":{"rendered":"<p>As we have talked about extensively in class, the Amazon affect is taking over seemingly every part of our lives. We now come to expect all things we order online to come in the two day delivery we know and love. While this is a great thing for consumers, it has put a great amount of pressure on other big retailers trying to keep up.<\/p>\n<p>&nbsp;<\/p>\n<p>One of these retailers is Wal-Mart. As discussed in the <a href=\"https:\/\/www.wsj.com\/articles\/wal-mart-tightens-delivery-windows-for-suppliers-1517266620\">Wall Street Journal<\/a>, in order to keep up with Amazon, Wal-Mart is trying to speed up their suppliers\u2019 delivery times. This, in turn, will allow the retailer to quickly refresh merchandise rather than holding on to the stocks of goods. The main reason behind this change is to make their stores more profitable and efficient so they can use this excess money to improve online orders, in the hopes of competing with Amazon.<\/p>\n<p>&nbsp;<\/p>\n<p>Since their suppliers can\u2019t guarantee fast delivery 100% of the time, Wal-Mart has to settle for 85% of deliveries coming in on time for big retail suppliers. For smaller suppliers they have to settle for 50%. If suppliers are not able to meet this demand, they will face fines from Wal-Mart. This is also coming at a time when freight transportation costs are soaring. Not only are trucks in short supply, but rising gas costs are increasing the price of transportation. Despite these possible setbacks, Wal-Mart is doing a great job at highlighting their problem areas and creating feasible, effective solutions.<\/p>\n<p>&nbsp;<\/p>\n<p>As we discussed in class, one key aspect of a business\u2019 success is their self-evaluation. As Amazon gains more and more subscribers, Wal-Mart in turn is faced with fewer customers wanting to come into their store for something they can get shipped right to them. Through analyzing their process structure Wal-Mart clearly highlighted what makes Amazon an order winner over themselves. The main problem in Wal-Mart\u2019s system is time delivery. In order to be a legitimate competitor in the market, they have to speed up their delivery process both in stores and online. Because of the retail giant that Wal-Mart is they can\u2019t just switch everything over to be completely online. This problem could be greatly outlined using the fishbone method we implemented in class. Through productive brainstorming Wal-Mart came to their solution of incentivizing their suppliers through fines.<\/p>\n<div class=\"jetpack-video-wrapper\"><iframe loading=\"lazy\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/MXo_d6tNWuY?feature=oembed\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/div>\n<p>&nbsp;<\/p>\n<p>This race to speed up Wal-Mart\u2019s everyday process cannot come soon enough. In 2015, Amazon introduced their prime drones. As it is now coming up on three years expansion has spread from the U.K. where the first delivery was to the U.S. last spring in California. Not only do these machines speed up Amazon\u2019s already ridiculously fast deliveries, but it cuts out the problem that Wal-Mart is currently facing with transportation costs and shortages. In order to compete in the long run, it is vital for Wal-Mart to continue reevaluating their process strategies and adapt to the changing times.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we have talked about extensively in class, the Amazon affect is taking over seemingly every part of our lives.<\/p>\n","protected":false},"author":3712,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[71161],"tags":[],"class_list":["post-233","post","type-post","status-publish","format-standard","hentry","category-analyzing-processes"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/users\/3712"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/comments?post=233"}],"version-history":[{"count":0,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/233\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/media?parent=233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/categories?post=233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/tags?post=233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}