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Building TLI Partnerships

Building TLI Partnerships. Wal-Mart Stores Inc. and the University of Arkansas presented by Jeff McAllister Vice-president of Global Supply Chain Management. Wal-Mart: the reluctant partner. Overcoming a bad reputation with the University of Arkansas No prior experience with Universities

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Building TLI Partnerships

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  1. Building TLI Partnerships Wal-Mart Stores Inc. and the University of Arkansas presented by Jeff McAllister Vice-president of Global Supply Chain Management

  2. Wal-Mart: the reluctant partner • Overcoming a bad reputation with the University of Arkansas • No prior experience with Universities • Academic vs “Real World” practicality • Importance and Timeliness • Expense and ROI

  3. Commitment: Overcome barriers • Become the “Employer of Choice” by creating a positive image • Commit resources to manage the project and act as liaison with faculty • Use undergraduates rather than grad students. Focus on basic IE skills. • Select projects with high potential payback but under the radar screen

  4. Proof of Concept Study Department Managers (Intrapreneurs) • Keep their Department in-stock • Maintain proper Inventory • Item Merchandising • CUSTOMER SERVICE!

  5. How Dept. Mgrs. spent their day

  6. Breakdown of Activities

  7. Lessons Learned • The value of objective, outside eyes • We didn’t know what was happening in our own business • Daily tasks not aligned to job expectations • Proliferation of Bureaucracy • Lack of focus of key sales drivers

  8. Now What?

  9. Neighborhood Markets • Growth vehicle for the company • Smaller environment so could look at the entire operation • Willingness of NHM’s senior management team to create a new business model

  10. NHMs TLI Projects • Front-end Getting people through checkout lines faster • Stocking Standards Maximizing in-stock levels efficiently • Management Consolidation Eliminating non-managerial functions • New Technology Evaluating self checkout prototypes

  11. Front-end Study • Developed staffing models • Evaluated queuing patterns • Determined sequence for opening registers by type (belted vs express)

  12. Stocking Standards • Determined productivity rates for sub-sections of the stores (grocery, cosmetics, paper/chemicals, etc…) • Built workforce utilization tool to assign Associates to work areas

  13. Management Consolidation • Tracked daily tasks for the Department and Cost Managers • Performed valued-added analysis of the activities • Eliminated all non-leadership responsibilities and assigned those to other Associates • Consolidated positions within an new organizational structure

  14. Analyzing New Technology • Evaluated three prototypes of self checkout registers in NW Arkansas • Developed a financial analysis tool to determine which stores generated payback • Recommended a prototype based on customer acceptance

  15. Impact on the Neighborhood Markets • Gallup scores significantly improve on Front-end performance • High in-stock levels using less labor • Higher sales from managerial focus merchandising and leadership • Extending testing of self-checkouts in metropolitan markets

  16. Keys to Successful Partnership • Proper project selection • Measurable ROI • Timeliness • Invest in relationship building • Commit internal resources • Active involvement with faculty and students to make project adjustments

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