Analyzing Shrinkage – Walmart

Analyzing Shrinkage – Walmart

A common associate safety risk that could lead to financial losses at Walmart stores is when employees get struck by or against shelves. Some items are so delicately positioned on shelves that slight disturbance can make them fall (Beck, 2016). Products that fall may become unsellable, especially if they break or some parts go missing. The store’s inventory managers need to constantly track inventory to discover the root cause of inventory loss. If it turns out to have been caused by employee mishandling, the company can then take precautionary measures to prevent further loss. Get in touch with us at eminencepapers.com. We offer assignment help with high professionalism.

Addressing shrinkage goes beyond deploying technology and CCTV cameras. Walmart believes that the best way to address shrinkage is by training and paying their staff competitively (Shin & Tucci, 2015). The strategy will help the company’s employees manage inventory better, stay accountable, and be on the lookout for thieves. The training seeks to equip employees with knowledge on how to prevent shoplifting, a leading cause of retail shrinkage at Walmart. Training will help them address shoplifting by customers and address employee behavior that can potentially lead to financial losses.

The installation of CCTV cameras to combat theft has proved ineffective in addressing shoplifting cases. That is because dishonest customers are aware of the existence of these cameras, and hence have devised ways to steal unnoticed (Howell  & Proudlove, 2007). Besides, the store’s employees are mostly occupied sometimes such that they cannot monitor every customer’s action adequately. The store needs to plan ahead of busy periods early enough. Planning ahead of time will help the company put measures to manage enhanced exchanges while detecting and preventing theft. For instance, the store can deploy more CCTV monitors and assign more representatives to monitor them when they expect high traffic.

References

Beck, A. (2016). Beyond Shrinkage: Introducing Total Retail Loss. Retail Industry Leaders Association Report.

Howell, S. D., & Proudlove, N. C. (2007). A statistical investigation of inventory shrinkage in a large retail chain. International Review of Retail, Distribution and Consumer  Research, 17(2), 101-120.

Shin, S., & Tucci, J. E. (2015). Wal-Mart dilemma in the 21st century: Sales growth vs. inventory growth. Journal of Applied Business Research (JABR), 31(1), 37-46.

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Analyzing Shrinkage – Walmart

Review your work on previous assignments in the course and conduct additional internal research on operations management in the WALMART ORGANIZATION. Based on course content and the results of your research, in a 250-350 word double-spaced Word document, respond to each of the following:

1- Identify a customer or associate safety risk in your store that, if not addressed, could lead to significant financial losses
a. Provide one specific recommendation for managing the risk

2- Ask an asset protection (loss prevention) associate about Walmart’s current practices for reducing store shrink. Based on this information:
a. Identify what you believe is the most effective practice for reducing shrink in your store
b. Support your rationale
c. Provide one specific recommendation for improving its effectiveness

3- Ask an asset protection (loss prevention) associate about Walmart’s current practices for reducing store shrink. Based on this information:
a. Identify what you believe is the least effective practice for reducing shrink in your store
b. Support your rationale
c. Provide one specific recommendation for improving its effectiveness