Answer

Walmart’s Operational Management Practice

The article I have chosen is authored by Nassauer (2020), “Walmart Sales Surge as Coronavirus Drives Americans to Stockpile” that is available at https://www.wsj.com/articles/walmart-sales-surge-as-coronavirus-drives-americans-to-stockpile-11589888464?mod=business_lead_pos1

            In light of the COVID-19 pandemic, many businesses have experienced challenges that have forced them to file for bankruptcy or even shut down. However, for Walmart, the opposite has been experienced as the company’s sales have increased drastically as many people stockpile. This outcome has been made possible by the changes in logistics that Walmart made once it realised that consumer behaviour was about to change (Nassauer, 2020). With the spread of COVID-19, many individuals are staying at home, and are feeling safe through online shopping.

Associated Operations Management Practice

            The operational management practice that this article is closely linked to is logistics. Logistics in operations management refers to the flow of goods from the point of origination to the point of consumption with the aim of meeting the needs of consumers. In the case of Walmart, the company has changed its logistics to meet the needs of consumers and adapt to the current COVID-19 pandemic (Berman, 2020). Fortunately, the company has online sales options, as well as the grocery pickups from customers through the driveway. The result of this change is that the company is able to continue serving its consumers without any interruptions (Jiong-Yu, 2020). Also, since not many others are able to offer the same options, this company has an additional advantage as new customers will get to experience its services. Walmart opted to change its operations by hiring more staff who would ensure that the online shopping need is fully met for all its customers.

The company has introduced a new Express Delivery service offering pickup and delivery options. These have been designed in such a way that there are no contacts during the customer services. It would be expected that the company sales would diminish, especially since new employees have been hired rather getting laid off during the COVID-19 crisis (Jiong-Yu, 2020). The move is a big win for the company since it has managed to change along with the changing customer needs. The physical stores are no longer viable for a business that has to stay afloat. Therefore, rather that downsizing or even shutting down the store, the management opted to hire more individuals and incur an additional $900 million (Nassauer, 2020). This decision paid off when the company’s global revenue rose by 8.6% to $134.62 billion (Nassauer, 2020). That is the best performance that the company has showcased so far, which came as a surprise to many.

How can this Example be used as a Lesson in your own Organization?

            In my own industry, the approach taken by Walmart to change logistics as showcased in the article, can be used as a lesson on the importance of changing along with the customer needs. Companies need to consider the needs of their consumers as this will be determining factor when it comes to sales performance. If consumers are unable to go physically to a store and make a purchase, or in the event of any other barriers, a company should have other alternatives of ensuring that logistics flows smoothly. As the article shows, the outcome of COVID-19 will greatly impact the buyer behaviour since they are now forced to consider no contact approaches.