BAMG 30700 Study Guide - Midterm Guide: The Home Depot, Online Shopping, Walmart
18 May 2018
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Process Analytics Study Guide
• Retailers Rethink Inventory Strategies:
o Home Depot is bringing a new philosophy to its stores
▪ Less is more
▪ Wants fewer items on its shelves and wants them to be within
ustoes’ eah
• focus on days of inventory rather than weeks
• Wants to keep inventory levels flat or slightly down
o This is a similar shift happening across the retail sector as companies are trying
to figure out ways to profitably serve the growing needs of online shoppers while
making their network of stores less of a financial burden
▪ Every move o inventory is an added cost that eats away at already thin
margins
o Online shopping has forced the industry to rethink math and science behind
inventory and the strategy
o Wal-Mart and Target are doing the same thing by moving products to shelves
faster
▪ have also widened aisles and oved bulky items into centralized
distribution locations instead of actually in stores
▪ In first quarter, Wal-Mat’s ietoy ose sloe tha sales, thus helpig
to improve gross profit margins
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