Wal-Mart: Transforming Retail with Technology
How it works
As the world's largest retail store, Wal-Mart's success is not solely rooted in its extensive inventory or competitive pricing but is significantly bolstered by its strategic adoption of advanced information systems. These systems have been instrumental in Wal-Mart's ascent to the top of the retail hierarchy. In the face of fierce competition from e-commerce giants like Amazon and Alibaba, Wal-Mart recognizes the necessity of evolving into a technology-forward company. This transformation is evident in their innovative initiatives, including robotics, mobile applications, and artificial intelligence, which collectively aim to revolutionize the shopping experience and streamline operations.
This essay explores how Wal-Mart is leveraging technology to maintain its dominance in the retail landscape. Technological Advancements
A significant stride in Wal-Mart's technological evolution is the development of a new high-tech grocery distribution center, projected to enhance operational efficiency by processing 40% more products than traditional centers (Redman, 2018). This facility, expected to be fully operational by 2020, employs robots for sorting and palletizing products, reducing transportation costs and minimizing waste. By discerning between crushable and non-crushable items, the center aims to prevent the damage that often occurs during transportation, such as the proverbial eggs-at-the-bottom-of-the-bag scenario. This technological upgrade not only accelerates processing times but also ensures optimal utilization of shipping space, ultimately translating into cost savings for both the retailer and its customers at the checkout line.
However, the introduction of such cutting-edge technology raises concerns about job displacement. While a typical perishable distribution center at Wal-Mart employs around 750 associates, the new automated facility will require only about 300 associates (Cox, 2018). Despite this reduction in workforce, the jobs that remain will transition from manual labor to roles focused on overseeing and managing the information systems and robotics that perform the heavy lifting. This shift highlights a broader trend in the labor market, where technological proficiency becomes increasingly valuable.
Mobile Technology
In addition to revolutionizing its supply chain, Wal-Mart is enhancing its customer experience through a feature-rich mobile application. This app serves as a digital shopping assistant, allowing customers to shop from home and in-store with ease. With functionalities like shopping directly through the app, creating shopping lists, and navigating the store with detailed maps, Wal-Mart aims to streamline the shopping experience. The app's list feature is particularly noteworthy, as it aligns with consumer behavior; studies indicate that approximately 80% of shoppers create a list before heading to the store (Heller, 2018).
Beyond list-making, the app offers unique features such as showing the availability of movies in local Red Box kiosks and facilitating returns through a digital history and barcode system. Despite the app's success, not all features have been well-received. The "Scan & Go" function, which allowed customers to scan items via their phones and pay directly, was discontinued due to its impracticality for large shopping trips (Redman, 2018). This setback underscores the importance of continuous innovation and adaptation in technology-driven initiatives.
Artificial Intelligence
Wal-Mart's commitment to technological advancement is further exemplified by its foray into artificial intelligence (AI). The company is developing an Intelligent Retail Lab in a New York store, where AI will oversee various aspects of store operations (Spencer, 2018). This AI system can monitor inventory levels, ensuring shelves are stocked and items are correctly placed. Additionally, the AI will track the availability of shopping carts and identify store spills, triggering self-cleaning robots to maintain a safe shopping environment.
The implementation of AI in retail operations raises questions about the future of jobs in the industry. As tasks traditionally performed by humans become automated, the nature of retail employment will inevitably evolve. However, rather than eliminating jobs entirely, AI presents opportunities for new roles focused on managing and optimizing these intelligent systems.
Conclusion
Wal-Mart's strategic integration of technology reflects its commitment to maintaining its position as the world's leading retailer while simultaneously evolving into a formidable tech entity. From pioneering automated distribution centers to enhancing customer engagement through a sophisticated mobile app, and exploring AI-driven store operations, Wal-Mart is redefining the retail landscape. This transformation not only improves operational efficiency and customer satisfaction but also positions Wal-Mart as a leader in technological innovation within the retail sector. As the company continues to embrace and develop cutting-edge technologies, it reinforces its reputation as a retail and tech giant, poised to thrive in an increasingly competitive market.
Wal-Mart: Transforming Retail with Technology. (2019, Dec 17). Retrieved from https://papersowl.com/examples/a-review-of-technology-in-walmart/