Systemic Thinking for Enhanced Inventory Management at Walmart

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MGT603 Assessment 1 Part A - Proposal
Individual
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Walmart is one of the largest global retailer companies which operates a chain of hypermarkets
and excess over more than 500 departmental and grocery stores globally. The company supplies
electronic products, home, and grocery products in the market and has already maximized its
customer retention rate in the market (Walmart, 2019). As an operational manager, it is analysed
that recently company is facing inventory management issues due to poor systematic thinking
approach. It is analysed that Walmart fails in managing timely inventory management and excess
stock and other shortage in inventory leads to huge loss by the company (Russell, & Taylor,
2011). Inventory management issues lead to a decrease in the performance of the company in the
market which causes a downfall in the customer retention rate of the company. These issues have
created a bad impact on the stakeholders of the company as they are losing interest in the policies
and procedures of the company which reduces the market share of the company.
As an operational manager, it is time to develop systematic thinking approach which helps in
focusing on the demand of customers and develop effective inventory management. System
thinking approach is a holistic approach which helps in focus on the currents system and
management, therefore it develops time management by giving proper direction to the
operational managers. It is essential for operational managers to adopt system thinking tools
which derive the requirement of inventory as per the customer and market demands (Russell, &
Taylor, 2011). The CATWOE is the essential system thinking tool which will help the
operational manager to identify key elements which develop effective inventory management
issues:
Customer: Help in analysing the customers and help in focusing on their demands, and help in
analysing factors which will lead to benefits for the company (Mehregan, Hosseinzadeh, &
Kazemi, 2012).
Actors: develop a systematic approach and clearly states the roles and responsibilities performed
by each employee in the department. Such aspects help in developing effective management at
the time of performing the task.
Transformation: Help in analysing elements which are essential to change in a system such as
units and input transform from outputs. Such elements will help in focusing on the productivity
of the Walmart Company.
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World view: Develop systematic thinking approach which will enhance the performance of the
firm globally and help in justifying the transformation.
Owners: Provide authorities to managers and direct them in controlling and on focusing on the
performance of the department and trained them to take effective decisions which will lead to
productive result for the company (Mehregan, Hosseinzadeh, & Kazemi, 2012).
Environment: Help in analysing the environmental factors which can hinder the activities of
management. Along with this, a systematic and risk management approach is developed which
help in overcoming the challenges.
Along with this, the stakeholders and higher authorities of the company should also focus on
implementing Rich picture which is an essential tool of systematic thinking approach
(Mehregan, Hosseinzadeh, & Kazemi, 2012). This tool helps in focusing on the activity-based
system which directs operational information to managers. Along with this, it also helps in
providing each information to stakeholders through which effective decision could be made and
lead to the welfare of the company. Thus, for developing inventory management managers has to
adopt these systematic thinking tools which will help in enhancing the efficiency of Walmart in
the market and develop effective inventory management.
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References
 Mehregan, R., Hosseinzadeh, M., Kazemi, A. (2012). An application of Soft System
Methodology. SciVerse ScienceDirect. Procedia – Social and Behavioural Sciences. Vol.
41. Pp 426 -433
 Russell, R.S. & Taylor, B.W. (2011). Operations Management: Creating Value Along the
Supply Chain, 7th edition, John Wiley & Sons, Hoboken, New Jersey. Chapter 1, pp. 1–
31
 Walmart, (2019). About. Retrieve from: https://www.walmart.com/
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