Wal Mart Organizational Analysis Walmart Stores (NYSE:

Wal Mart Organizational Analysis

WalMart Stores (NYSE: WMT) is the worlds leading mass merchandiser with global supply chain partners and a logistics network that rivals United Parcel Service and Federal Express. The market structure of the global mass merchandising industry continues to favor those retailers who have deep expertise in logistics, supply chain, pricing and vendor management (Zhu, Singh, Manuszak, 2009). WalMart excels on all of these dimensions, which provides international operations and wide range of products

Defining The Goal Of Increased Forecasting Accuracy

Based on the analysis of WalMart's strengths, it has become evident the extent to which the company can successfully anticipate and react to customer demand has a direct impact in the efficiency and profitability of their logistics network. Forecasting accuracy is critically important from the strategic perspective of a logistics network to the tactical aspects of in-store experience of customers finding products in stock (Rosenblum, 2004).

The goal of this analysis is to improve forecasting accuracy by 30% in the most valuable segment WalMart has today, which is the Price Value Shopper. According to an analysis of the WalMart financial statements and filings with the Securities and Exchange Commission (SEC) (WalMart Investor Relations, 2013). Price Value Shopper is the most loyal customer segment there is, being just 16% of the total customer-based but delivering 40% of all profitability (WalMart Investor Relations, 2013). The goal of increasing forecasting accuracy specifically for this segment will increase profitability for WalMart by an estimates 2 to 5% points, which equates a millions of dollars of incremental sales and profits. Figure 1 provides an analysis of the WalMart customer base, given the data provided in their filings with the SEC and their annual report.,

Figure 1: WalMart Customer Base (Psychographic-based)

(WalMart Investor Relations, 2013)

Operational Plan