There are several best practices that can be implemented for small businesses and large supply chain businesses alike, Some of these include developing a mission statement to determine what is most important to the company, implementing processes to ensure productivity, and continuously evaluating current practices and innovating those practices to ensure success and growth. Every business faces challenges, and markets are ever-changing because of the ever-changing trends, technology, and customer basest If a company develops goals, and implements measures and tests to determine whether these goals are being met, they can better address their challenges.
Total Quality Management (TQM), Six Sigma, and Statistical Process Control (SPC) are all approaches to address the quality of a company, TQM is based on the collaboration of individuals with different skill sets to not only implement the current quality control measures but to innovate them and further develop them for the betterment of products and services.
Six Sigma is based on the facts and the data, and in turn identifies individual issues and their financial impacts in order to resolve them immediately and efficiently.
Some inventory control mechanisms utilized by Walmatt are inventory management software, audits, surveillance, and loss prevention mechanisms in place Through its inventory management system, Walmart is able to determine how many items are ordered and sold, which then allows vendors to automatically know when to ship more products. This alleviates the issue of running out of a certain product.
The semi-annual audits allow the staff of the company to determine the accuracy of their systems and determine what further measures need to be implemented to reduce lost.
There is a loss prevention team solely dedicated to reducing profit losses by identifying shoplifters, and deterring employee theft. The most suitable means of inventory control is the one in place because it alleviates pressure on staff and management, and increases efficiency. Some innovative steps that could be taken to deter shoplifting and employee theft would be to award the employees for reduced loss through incentives to actively identify and reduce losses, incentives for employees would have a better outcome than implementing more stringent rules and repercussions.