Enterprise Resource Planning (ERPs) is an important technology that helps businesses operate profitably and efficiently. Companies like Walmart rely on ERPs to maintain their operations on a global level. This paper highlights the need for Walmart to engage in a proposed training program integrated into its organizational structure to facilitate the adoption of ERPs by focusing on the procurement process phase of its operations.
Walmart’s Procurement Process.
Walmart’s procurement process is part of its competitive advantage over other retailers. Therefore, Walmart’s procurement process is guarded and maintains a secretive relationship with the partners it secures across the supply chain. However, scholars have probed the firm’s procurement process and established that Walmart relies on a trade credit managerial mechanism to ensure goods and services and establish partnerships with strategic partners across the supply chain (Pinto & Morris, 2007). Walmart’s procurement process does not have a particular name dedicated to it. Therefore, when discussing its procurement structure and overall organization layout, the company’s procurement process is generic and only differentiates from its competitors through the trade credit arrangement.
Walmart’s Execution of the Procurement Process.
Walmart’s execution of the procurement process manifests through the trade credits. The approach works as Walmart owes its suppliers trade credit contracts for goods received and pay for them later. Trade credits are an essential source of short-term financing and enable international procurement of goods and services from third-party suppliers that Walmart often utilizes in vailing goods and services to its customers. The work centers in such a system are compartmentalized, with procurement being pursued by the procurement sector. The tools and workflow adhere to the organizational structures, and there are no written guidelines and instructions to enforce the established procurement process. There are also no regulations, especially federal regulations, that expressly govern and amount the work of the procurement process (Purchasing Insight, 2012).
Organizational Elements Involved.
Walmart’s Organizational Structure.
(Photo adapted from: https://fourweekmba.com/walmart-organizational-structure/#:~:text=Key%20takeaways%3A%201%20Walmart%20has%20a%20hybrid%20hierarchical-functional,employee%20without%20a%20direct%20superior.%20…%20More%20items).
As pictured above, Walmart’s current organizational structure needs a dedicated procurement department. The procurement of goods and services sold through Walmart are procured under the sales manager, who works under the two functional managers. The structure ensures that the two managers work independently of each other but in a complementary relationship that ensures they can secure procurement of the necessary goods and services. However, after reviewing the organization’s organizational structure, it is evident that Walmart needs a dedicated procurement department to consolidate all the procurement services under one department. A dedicated procurement department is crucial as it can help the different departments secure the necessary goods and services to fulfill every customer’s request effectively.
The Presence of an Enterprise Resource Planning System Used to Synchronize the Process.
Though Walmart does not share its use of an exclusive ERP, its sheer size and the efficiency with which it operates globally suggest that the company has an efficient ERP system. According to Easy ERP System (2023), Walmart installed an ERP system to streamline and optimize various internal procedures to enhance its supply chain management and improve its operating efficiency. The adoption of the ERP was a necessary undertaking by Walmart to ensure it modernized its operations. It allowed the system to operate as a centralized platform to integrate all the primary functions of the business, including financial planning, procurement, and inventory operations. Therefore, judging by the efficiency of the operations and various reports, one can confidently acknowledge that Walmart likely has an established ERP to complement its operations.
Other Supporting Technologies Complementing Processes at Walmart.
The company has an accomplished ERP system. The system is efficient in helping the company run its daily operations and coordinate interdepartmental systems. Walmart also heavily invests in other complementary technologies to support the ERP system achieve its mandate. For instance, the company has an effective cloud computing technology to help run its ERP system and other operations. The company also has other Internet of Things and Artificial Intelligence technology to ensure their operations are practical and fully functional. However, it is essential to note the complementary technology work to ensure the ERP is effective and completes its mandates. Walmart also has a culture of innovation and will likely adopt more effective complementing technologies with time.
The Motivation and Significance of the Proposed Research.
The motivation and significance of the proposed research is to ensure companies like Walmart have an established learning mechanism to ensure employees can take advantage of technologies such as ERP. Through its innovative approach, Walmart will likely acquire complementary technologies and systems to facilitate its operations. However, a primary challenge such an approach poses is having a workforce incapable of maximizing their potential due to inadequate skills and technical knowledge. Such inadequacies force companies to invest in educational programs to eliminate the skills and knowledge gap. Therefore, the proposed research will encourage and educate companies on the significance of having proper learning mechanisms to prepare employees for such changes.
Previous Studies Aligning with the Proposed DSP Topic.
Numerous studies explore how organizations intend to include learning activities to increase employees’ skills and competencies. A survey by Blau et al. (2008) explores the relationship between organizational and professional development activities and their impacts on employee performance. Another study by Clifford & Thorpe (2007) explores the effectiveness of using different earning methods in organizational training activities. Simms (2020) explores Walmart and its previous approaches to educating its employees on adopting new technologies. The three studies prove that training is an undertaking Walmart must consider when introducing new ERPs. Therefore, an established pool of previous research related to the question of interest justifies the topic suggested for exploration.
In conclusion, Walmart, just like any other organization implementing ERPs or other technologies, must ensure they prepare their employees adequately. With proper education and preparation, employees develop the necessary skills and competencies to use such technologies. The proposed research will help Walmart streamline its adoption of the ERP and integrate it into its organizational structure.
References.
Blau, G., Andersson, L., Davis, K., Daymont, T., Hochner, A., Koziara, K., Portwood, J., & Holladay, B. (2008). The relation between employee organizational and professional development activities. Journal of
Vocational Behavior, 72(1), 123-142. Focus on Paragraphs 1.1, 2.2.1, and 2.2.2.
Clifford, J., & Thorpe, S. (2007). There are more ways than one to explore different learning methods in organizations. Industrial and Commercial Training, 39(5), 267. Focus on the four broad learning categories starting at the bottom of page 268.
Easy ERP System. (2023, November 6). A Successful Walmart ERP Case Study. Easy ERP System; Easy ERP System. https://erp.101simplerecipe.com/walmart-erp-case-study
Pinto, J. K., & Morris, P. G. (2007). The Wiley guide to project technology, supply chain, and procurement management. Hoboken, N.J.: Wiley.
Purchasing Insight. (2012, September 23). The Procurement Process. http://purchasinginsight.com/resources/the-procurement-process/
Simms, G. (2020). Walmart Global Technology. Women of Color Magazine, 20(2), 74-79.
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