Inventory Proposal Wal-Mart

Every follow, no topic the size deals with stock certificate issues. How these issues are dealt with throne determine the outcome of the smart set. If not accomplish in a rectifiable fashion, the union could face serious threats up to and including closure. We chose Wal-Mart as our company from our last paper, as it proposes an provoke dilemma in that despite the go along growth, all is not well with surface-to-air missile Waltons creation. This paper go forth contend the origin conundrums, the expected benefits that whitethorn or may not motivate the ecesis for change and our assessment for an alternative tooth root.Wal-Mart is growth at a blistering stair adding nearly 500 stores in the historic five years a 13% increase, just now during this time period Wal-Mart has trim down its employee count by roughly 20,000. This has had a serious impact on the fund. Bloomberg publish an article that states that although Wal-Mart has one of the best show chains in the humanity, without staffing that chain breaks down. The company does not aim enough workers to serve well stock inventory on shelves, or distri hardlye the inventory to stores. Customers either envision stores envisioning disorganized and unkept, or apparently find an empty shelf with no production (Flannelly, 2013).A leak report to Bloomberg said Bill Simon, the executive transgression president and chief executive officeholder for Wal-Marts United States operation say during an executive officers meeting that the company has inventory problems. We run out quickly and the forward-looking stuff doesnt come in, he stated, noting that these self-inflicted wounds were Wal-Marts biggest risk. (Foley, 2013) The issue is the amount of inventory that the current employees can stock is uttermost less than is required to brinytain sufficient merchandise levels. A store may have inventory in the keep going, but if it is not seen by the customer, the store is considered to be out of stock.This poses two major problems for Wal-Mart. The main problem is that this overleap of stock is cost Wal-Mart billions in gross sales and is essentially in the lead customers to competitors. More competitors, like Target and Costco, have gained some of the market share out-of-door from Wal-Mart it seems as though maintaining good, well-stocked, exceptionally operated stores take to perish a priority for the company (Flannelly, 2013). Another major issue with this problem is that inventory sit in the back depreciates and every hour it sits is like a leaking faucet.Not only is the product sitting and depreciating, in that respect are higher possibilities that the product might be damaged, expire, or merely lose its market value. Adding insult to injury, customer satisfaction continues to decrease. Due to the lack of workforce Wal-Mart has remained in last place on the American Customer Satisfaction big businessman for the past six years. Those are lurch number s considering that Wal-Mart is the number one retail merchant in the world. If this problem is not rectified, Wal-Mart and its world renowned inventory system will be six feet under.Shows a unconstipated increase in inventory, callable either to the increase in locations or The lack of adequate employees to stock merchandise. The graph supra indicates that Wal-Mart has the most inventory during the months of October, November, and December. This is probably due to the increase in sales during swarthy Friday and Christmas. This also indicates that the amount of inventory during the one-third quarter is significantly lower than the put down of the year. Gives a more definitive look at the highs and lows in regards to inventory by quarter. Utilizes linear regression to forecast next inventory during any given quarter.The supra graphs show inventory to sales over the last three years. We found that although Wal-Mart continues to grow, their sales could be higher. Each year there is a decrease when comparing it at one time to inventory. Between 2011 and 2012 the Sales difference was 6% and only 5% between 2012 and 2013. stock also has a dip exhibit an 11% increase between 2011 and 2012 but drops down to 6% between 2012 and 2013. The intellect is rather simple. If inventory does not make it to the floor, sales will decrease. As inventory continues to sit, Wal-Mart is essentially bleeding out.Obviously the wane action would be to hire the requisite employees to correct this problem, but the costs may be too high to do all at once, not to mention, Wal-Mart feels no need to do such. Our alternative solution would be to hire in increments and follow through specialized formulation that specifically focuses on turning the inventory. All new employees should become subject matter specialist and the training must(prenominal) be repeated throughout the nation (White C. , 2013). While inventory is not the issue, it has become the equation of cause and effect. This must be a priority as the inventory is the life blood of the company. No blood, No business.