Reading review #4: Technology of Wal-Mart

In the 8th and 9th chapters of “The Wal-Mart Way” (Nelson Business, 2004) written by the former chairman of Wal-Mart, Soderquist, the author focused on the technology aspects that made great contribution to the powerful Wal-Mart.

In the beginning of chapter 8, the author claimed that advanced technology could bring great innovations to retail stores in many ways. In Soder’s opinion, Introducing new inventions such as computers and databases to the store could provide faster and more accurate service as well as cut down the cost. He also recalled the early story of Wal-Mart to enhance its technology. The former chairman believed there are 4 key points to let the company take most advantage of up-to-date innovations: “senior leadership and support; selection of the right person to lead the technology department; investment in the right projects; a method of determining actual payback.” (p138). At last, the author mentioned some important innovations brought by Wal-Mart, which influenced the whole world’s retail mode.

In chapter 9, Soder introduced some basic principles of Wal-Mart’s supply chain. He argued that the supply chain is not just rigid logistics, but could be improved in some significant ways. Then Soder claimed that Wal-Mart always build up new stores at the perfect position, which were supported efficiently by nearby warehouses. In this way, Wal-Mart could keep its stores in stock and lessen the money invested in inventory at the same time.