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Sam’s Club
Course Project
MGMT 4363 SPRING 2021
GROUP 11:
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Table of Contents
Abstract ………………………………………………………………………..………………….3
Background …………………………………………………………………………………..….4
Check Out Implementations ……………………………………………………………..5
Self-Checkout …………………………………………………………………………..6
Scan and Go App ………………………………………………………………….…..6
Analysis …………………………………………………………..……………………………….7
Recommendation of Proposed Concepts …………………………………..…..10
Facility Layout …………………………………………….…………………………….10
Gas Station Layout ……………………………………………………………………11
Total Quality Management ………………………………………………….……12
Self-Checkout Machines & Cashiers …………………………………13
Exit Greeters ……………………………………………………………………14
Gas Station ………………………………………………………………………14
References ………………………………………………………………………………..……16
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Abstract
This project will provide an analysis on Sam’s Club through the lens of an operations manager.
The sister company to Walmart is known for its cheap membership and bulk selling. The
megastore does a pretty decent job at attracting customers by promoting the purchase of larger
quantities of items as a means of saving. This success; however, does not come without
shortcomings. In comparison to its major competitor, Costco, Sam’s Club lacks as many stores
nor an international footprint. Due to the pandemic of COVID19, it has tremendously affected
the members of the company. To prevent the spread of the deadly disease, changes had to be
implemented to meet the state, federal and local guidelines; to include the mandatory
requirements of the Center of Disease Control (CDC). It is also worth noting the shortages on
food and supplies, and the gas stations lines are lengthy and can be time consuming. With that
being said, we will discuss the benefits and costs of opening a new store, the desirable location,
and possible improvements to the gas stations.
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Background
Sam’s Club opened its first door’s in April 7th, 1983 in Midwest City, OK. Sam’s Club
was founded by a notable business leader named Sam Walton. Sam Walton was a successful and
humble entrepreneur who knew the struggles and challenges of running a small business. He
created Sam’s Club to help other
entrepreneurs like himself access
resources to run their small businesses
and succeed. Today, Sam’s not only
offers products, resources, and
services for entrepreneurs and small
business owners, but for families and
their everyday needs.
Sam’s Club is a division of
Walmart Inc. which was also founded
by Sam Walton in 1962. Sam’s Club
headquarters is located in Bentonville,
AR. The president and CEO is
Kathryn McLay. Sam’s Club has
millions of members who are served
online at SamsClub.com and at nearly 600 locations across the U.S, Puerto Rico, Brazil, China,
and Mexico. Sam’s Club is a membership warehouse club whose model is that of a limited-item
business. Sam’s can offer its member’s large savings and exception prices which are unmatched
due to their business model. They don’t purchase every item in every brand, instead they
researched the best quality products, and purchased them in large quantities which allowed them
to pass on the savings to their members. Sam Walton wanted nothing more than to serve his
customers. He once stated “Our philosophy has always been simple,…We are the agents for our
customers.” (Sam’s Club, Our Company)
Check Out Implementations
Self-Checkout
Sam’s Club implemented the self-
checkout lanes to help customers with a speedy
and easy checkout. The Bentonville location
was first to test out the self-checkout lanes in
2011. Sam’s Club designed their system so that
the customer will have an easy experience. The
system was designed differently than other
self-checkouts you see like for example at
