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assignment on supply chain management of walmart

Walmart Supply Chain: Building a Successful Integrated Supply Chain for Sustainable Competitive Advantage

Case Studies

Introduction

The global business landscape has witnessed an increasingly fierce competition, pushing companies to seek effective strategies to maintain and enhance their competitiveness. Among these strategies, the role of supply chain capability stands out as a key factor in driving success. A well-optimized supply chain not only ensures efficient delivery and cost-effectiveness but also provides companies with a competitive advantage in the market. In this context, Walmart, the world’s largest retailer, has demonstrated a highly successful and integrated Walmart supply chain, propelling its growth and dominance in the retail industry.

This case study aims to delve into the significance of supply chain capability for enhancing a company’s competitiveness and how it serves as a competitive advantage for companies. Additionally, we will explore the imperative need for supply chain redesign in the global economy to adapt to the challenges of the modern era of globalization. Focusing on Walmart’s exemplary supply chain practices, the purpose of this case study is to analyze the features of its successful integrated supply chain while identifying relevant issues in the context of the current globalized market.

[Read More: Rivian: Navigating Supply Chain and Operational Challenges and Embracing Growth ]

Walmart’s Supply Chain: Integrated Supply Chain Success

Data-driven success factors.

In the realm of modern supply chain management, data-driven strategies play a pivotal role in enhancing a company’s competitiveness. Walmart’s remarkable success as the world’s largest retailer can be attributed to its astute utilization of data analysis and advanced technologies within its integrated supply chain. This section delves into the key data-driven success factors that have propelled Walmart’s supply chain to the forefront of the retail industry.

[Read More: ERP Master Data: A Guide to Improve Quality & Governance ]

Role of Data Analysis through Barcode Scanning and Point-of-Sale Systems

Data analysis is at the core of Walmart’s supply chain prowess. The company has implemented sophisticated barcode scanning and point-of-sale systems to collect real-time data from its stores. By employing these technologies, Walmart gains valuable insights into customer buying behavior, sales trends, and inventory levels. The ability to analyze this data enables the retail giant to make informed decisions on product procurement, inventory management, and demand forecasting.

Efficient Supply Chain Practices: Automated Distribution Centers and Computerized Inventory Systems

Automation is a key component of Walmart’s efficient supply chain practices. The company has strategically invested in automated distribution centers, streamlining the flow of products from manufacturers to stores. These automated facilities not only optimize the handling and movement of goods but also enable faster order fulfillment and replenishment. Additionally, computerized inventory systems provide Walmart with accurate and up-to-date information about stock levels, allowing for precise inventory control and reducing the risk of stockouts or excess inventory.

Utilizing Walmart’s Own Trucking System and Cross-Docking Logistics

Another critical factor contributing to Walmart’s supply chain success is the utilization of its private trucking system and cross-docking logistics. By maintaining its own trucking fleet, Walmart gains greater control over transportation and delivery schedules, leading to improved efficiency and timely product replenishment. Furthermore, the adoption of cross-docking logistics techniques has enabled Walmart to minimize the need for intermediate storage, leading to reduced handling costs and faster product movement through the supply chain.

[Read More: The Ultimate Guide to Contract Logistics: What You Need to Know ]

Information Technologies Driving Efficiency

In Walmart’s journey towards becoming a global leader, information technologies have played a pivotal role in driving efficiency within the integrated Walmart supply chain. The retail giant has strategically adopted various IT initiatives to optimize its operations, enhance collaboration with suppliers, and achieve real-time inventory targeting. These technologies have contributed significantly to Walmart’s supply chain success, allowing them to maintain a competitive edge in the retail industry.

Collaborative Planning, Forecasting, and Replenishment (CPFR)

One of the key information technologies that have bolstered Walmart’s supply chain efficiency is the implementation of Collaborative Planning, Forecasting, and Replenishment (CPFR). This system facilitates seamless communication and coordination between Walmart and its supply chain partners, including suppliers and distributors. By sharing real-time sales data and demand information, CPFR enables accurate forecasting and demand planning, minimizing information distortion, and promoting synchronized inventory replenishment. The CPFR program has been instrumental in enhancing overall supply chain visibility and efficiency, allowing Walmart to respond promptly to fluctuations in demand and supply, reducing stockouts, and optimizing inventory levels.

Vendor-Managed Inventory (VMI) and Its Benefits

Walmart’s adoption of Vendor-Managed Inventory (VMI) has been another critical information technology-driven initiative. Through VMI, Walmart empowers its suppliers to take on the responsibility of managing their inventory stored in Walmart’s warehouses. By granting suppliers access to real-time inventory data and sales information, Walmart facilitates efficient inventory tracking and replenishment. This hands-on approach by suppliers results in streamlined inventory management, reduced delays in replenishment, and lower stockouts. The VMI model has proved particularly advantageous for Walmart due to its vast product range and numerous suppliers, making inventory management complex and costly if managed solely by the retailer.

[Read More: Vendor Managed Inventory: A Comprehensive Guide ]

Leveraging RFID Technology for Real-Time Inventory Targeting

RFID (Radio Frequency Identification) technology has been a game-changer in Walmart’s pursuit of real-time inventory targeting and enhanced supply chain visibility. By employing RFID tags on products, Walmart can track the movement of inventory throughout the supply chain in real-time. RFID enables accurate and automated inventory tracking, reducing the need for manual counting and minimizing errors in inventory management. The technology also provides crucial details, such as production time, location, and expiry dates of goods, allowing for efficient inventory targeting and better control over inventory turnover. RFID technology has been instrumental in Walmart’s cost reduction efforts, ensuring optimal stock levels while avoiding overstocking and unnecessary inventory holding costs.

Achieving Competitive Advantage through Strategy

Walmart’s competitive strategy: “everyday low prices” (edlp).

Walmart’s competitive advantage is deeply rooted in its strategic focus on offering “Everyday Low Prices” (EDLP) to its customers. The EDLP strategy revolves around providing high-quality products and services at the lowest possible prices, ensuring that customers can benefit from affordable prices every day. This approach sets Walmart apart from its competitors and has been instrumental in establishing the company as a dominant force in the retail industry.

Implementing the “Everyday Low Costs” (EDLC) Policy through Direct Procurement

To support its EDLP strategy, Walmart follows an “Everyday Low Costs” (EDLC) policy in its supply chain management. One of the key elements of the EDLC policy is the direct procurement of items from suppliers, eliminating intermediaries in the process. By procuring directly from manufacturers, Walmart can negotiate and understand their cost structure, enabling them to make informed purchasing decisions and obtain the best prices for their products.

Walmart’s emphasis on direct procurement is further bolstered by the use of technology and information systems. The company has implemented a central database, store-level point-of-sale systems, and a satellite network, along with barcodes and RFID technology as previously mentioned. These technologies allow Walmart to gather and analyze real-time store-level information, including sales data and external factors like weather forecasts, to enhance the accuracy of purchasing predictions. This integration of information technology helps Walmart optimize its procurement process and maintain low costs throughout the supply chain.

Utilizing Information Systems for Better Inventory Management

Effective inventory management is critical for Walmart to sustain its competitive advantage through the EDLP strategy. The company relies on information systems and information technology (IT) capabilities to control inventory levels efficiently. By capturing customers’ demand information, Walmart can identify popular products and stock them adequately, leading to an overall reduction in inventory.

One notable example of Walmart’s successful utilization of information systems is its collaboration with Procter & Gamble (P&G) through the Collaborative Planning, Forecasting, and Replenishment (CPFR) program. This program links all computers of P&G to Walmart’s stores and warehouses, allowing for efficient replenishment orders based on real-time inventory needs. Additionally, Walmart’s Retail Link , developed in the early 1990s, serves as another vital IT application for storing data, sharing it with vendors, and aiding in shipment routing assignments.

Challenges and Opportunities

Supplier cooperation and collaboration.

Walmart’s supply chain success can be attributed to its strong relationships with suppliers, but achieving and maintaining supplier cooperation and collaboration is not without challenges. Let’s explore the challenges and opportunities in this area:

Challenges in Obtaining Suppliers’ Cooperation

Supplier Resistance to Direct Procurement: Walmart follows an “Everyday Low Costs” (EDLC) policy by directly procuring items from suppliers, eliminating intermediaries. However, some suppliers may be reluctant to cooperate with this approach as it can disrupt existing distribution channels and potentially reduce their bargaining power.
Complex Supplier Networks: With thousands of suppliers across various product categories, managing diverse supplier networks can be challenging. Each supplier may have different production and delivery schedules, making coordination difficult.
Balancing Profit Margins: As Walmart emphasizes low prices, maintaining a balance between cost savings and ensuring suppliers’ profitability can be a delicate task. Suppliers may resist pressure to reduce prices further to maintain their margins.

Opportunities for Enhanced Supplier Cooperation and Collaboration

Establishing Transparent Communication Channels: Walmart can create transparent and open communication channels with its suppliers to foster better cooperation. Clear communication regarding demand forecasts, inventory levels, and potential disruptions can help suppliers plan their production and deliveries more efficiently.
Supplier Incentive Programs: Introducing incentive programs that reward suppliers for meeting certain performance metrics, such as on-time delivery or cost reduction, can motivate suppliers to actively collaborate and improve their supply chain capabilities.
Collaborative Planning, Forecasting, and Replenishment (CPFR): Walmart can leverage technology, such as CPFR, to share real-time sales data and demand forecasts with its suppliers. This collaborative approach allows suppliers to align their production and inventory management with actual market demand, reducing the bullwhip effect and optimizing the supply chain.
Sharing Inventory Visibility: Providing suppliers with access to inventory data, including stock levels and sales information, can help them plan production and deliveries more effectively. This visibility can prevent stockouts and overstocking issues.
Long-term Partnerships: Building long-term strategic partnerships with key suppliers can create a sense of mutual commitment and trust. By assuring consistent business over an extended period, Walmart can foster stronger relationships and supplier loyalty.

[Read More: 3 Types of Supplier Segmentation Matrix You Can Use to Classify Suppliers ]

Importance of Collaboration to Enhance Supply Chain Efficiency

Reducing Lead Times: Effective collaboration with suppliers can help shorten lead times by streamlining production and transportation processes. Faster lead times enables Walmart to respond quickly to changes in demand, reducing the risk of stockouts.
Efficient Inventory Management: Collaborative efforts with suppliers enable better inventory planning and management. Suppliers can adjust production based on actual demand, reducing excess inventory and associated costs.
Supply Chain Flexibility: Collaboration fosters agility and adaptability in the supply chain. When Walmart and its suppliers work together closely, they can quickly adjust to market changes, supply disruptions, or new opportunities.
Cost Reduction: Improved supplier collaboration can lead to cost-saving opportunities. By eliminating unnecessary intermediaries and optimizing production and transportation, overall supply chain costs can be minimized.

The Incentives Alignment Issue

In any supply chain, maintaining a balance of profit margins among different parties is essential for efficient collaboration and sustained success. However, achieving incentives alignment can be challenging, and this issue is particularly relevant in the case of Walmart supply chain. Addressing misalignment of interests between Walmart and its suppliers is crucial for optimizing the overall performance of the supply chain and ensuring long-term success. The following points highlight the incentives alignment issue faced by Walmart:

1. Balancing Profit Margins Among Different Supply Chain Parties:

Walmart’s success is attributed to its ability to offer high-quality products and services at the lowest affordable prices. To achieve this, Walmart employs various cost-cutting strategies, such as direct procurement from suppliers and streamlined distribution practices. While these strategies help Walmart maintain competitive prices, they can create challenges for suppliers who may face pressure to lower their own profit margins to meet Walmart’s demands. This misalignment of profit margins can lead to strained relationships and potentially impact the overall efficiency of the supply chain.

2. Misalignment of Interests Between Walmart and Suppliers:

Walmart’s size and market dominance can lead to power imbalances in supplier relationships. Suppliers may feel compelled to comply with Walmart’s demands to maintain access to its large customer base. However, this can lead to situations where suppliers may not have enough leverage to negotiate favorable terms, impacting their own profitability. As a result, suppliers may be less inclined to invest in innovations or improvements that would benefit the supply chain as a whole.

3. Conflict Between Inventory Growth and Sales Growth:

Walmart faced inventory growth issues in the past, with the inventory growth rate outpacing the sales growth rate. This can be indicative of conflicting incentives between Walmart and its suppliers. Suppliers may prioritize producing and delivering more inventory to ensure they meet Walmart’s demands, even if the sales growth does not keep up with the increased inventory. This misalignment can lead to excess inventory, increased carrying costs, and potential stockouts.

4. The Need for a New Triple-A Supply Chain:

Addressing the incentives alignment issue requires a fundamental shift in the supply chain strategy. Lee (2004) proposed the concept of a new Triple-A supply chain for Walmart and other companies in the 21st century. The Triple-A supply chain emphasizes agility, adaptability, and alignment to create a sustainable competitive advantage. Achieving alignment among all participating parties is crucial to optimize supply chain performance and ensure that risks and rewards are distributed fairly.

The Triple-A Supply Chain Approach

In today’s competitive business landscape, companies like Walmart recognize that a successful supply chain is not just about having a fast and cost-effective system. To maintain a sustainable competitive advantage and address the challenges of the global economy, it is essential to redesign supply chains that incorporate agility, adaptability, and alignment. This section explores the concept of the Triple-A Supply Chain Approach, which emphasizes these three key qualities that an ideal supply chain should possess: agility, adaptability, and alignment of interests among all participating parties.

The Three Qualities of an Ideal Supply Chain

Agility for quick and cost-effective responses:.

Agility refers to a supply chain’s ability to respond quickly and cost-effectively to sudden changes in demand, supply, and external disruptions. In the fast-paced business environment, companies must be able to adapt swiftly to fluctuations in customer preferences, market conditions, and unforeseen events. For Walmart, agility has been a critical factor in maintaining its leadership position in the retail industry. The company’s investments in technology and supply chain optimization strategies have allowed them to optimize inventory levels and respond rapidly to changing customer demands, ensuring the availability of products while minimizing inventory costs.

Adaptability to Handle Changes in Demand and Supply:

Supply chains should be adaptable and flexible enough to handle variations in demand and supply patterns. Demand forecasts can be uncertain, and unexpected supply chain disruptions may occur, making adaptability a vital quality. Walmart’s focus on omnichannel and various fulfillment options, such as in-store pickup and ship from store, demonstrates their commitment to adaptability. By utilizing multiple channels, Walmart can cater to diverse customer preferences, ensuring an uninterrupted flow of products to meet demand.

Alignment of Interests among All Participating Parties:

One of the significant challenges in supply chain management is ensuring alignment of interests among all parties involved, including suppliers, manufacturers, distributors, and retailers. Walmart’s scale and dominance in the retail market have allowed them to establish strong relationships with vendors, enabling strategic partnerships with vendors who can meet their high-volume demands. Additionally, Walmart’s adoption of Vendor Managed Inventory (VMI) allows suppliers to manage their own inventory stored in Walmart’s warehouses. This collaboration aligns the incentives of suppliers and Walmart, streamlining inventory management and ensuring timely replenishment.

In conclusion, Walmart’s integrated supply chain has been a crucial factor in the company’s global dominance and sustained competitive advantage. By strategically investing in technology and optimizing its supply chain, Walmart has managed to maintain its position as the world’s largest retailer with over $572 billion in revenue in 2022.

Walmart’s success serves as a compelling example of the importance of a well-integrated supply chain in achieving and sustaining competitive advantage in the global market. As businesses continue to navigate the complexities of the 21st-century economy, building and enhancing supply chain capabilities will remain a critical aspect of ensuring sustainable growth and profitability. By prioritizing agility, adaptability, and alignment, companies can follow in Walmart’s footsteps and position themselves for continued success in the dynamic and ever-evolving global marketplace.

References:

Lee H.L. (2004): The triple A supply chain. “Harvard Business Review”, Vol. 82, No. 10, pp. 102-112.
Nguyen T.T.H. (2017): Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century. “Journal of Economics and Management”, Vol. 29(3), pp. 102-117

About the Author – Dr Muddassir Ahmed

Dr MuddassirAhmed is the Founder & CEO of SCMDOJO. He is a global speaker , vlogger and supply chain industry expert with 17 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East and South East Asia in various Supply Chain leadership roles. Dr. Muddassir has received a PhD in Management Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and founded the leading supply chain platform SCMDOJO to enable supply chain professionals and teams to thrive by providing best-in-class knowledge content, tools and access to experts.

You can follow him on LinkedIn , Facebook , Twitter or Instagram .

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Walmart Supply Chain: What Makes It (Still) So Successful

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Table of Contents

What makes Walmart’s supply chain so successful?

Walmart and shipbob’s winning fulfillment combo, walmart supply chain faqs.

With a revenue of over $570 billion , Walmart continues to rank number one on Fortune’s Global 500 list. This marks their ninth consecutive year at the top position, making Walmart the largest company in the world by revenue.

Walmart’s success can be attributed to having their own supply chain to streamline fulfillment and cut down on costs. It also provides them with more control over their logistics network .

In this article, we take a closer look at the Walmart supply chain and why it continues to be so successful decades later.

Walmart’s supply chain success can be attributed to their tactful decisions to start investing in the right initiatives, including technology and expanding their logistics network, to provide value in the ecommerce space.

Below we break down the various initiatives that has made Walmart’s supply chain successful.

Early investment in supply chain optimization

Walmart’s focus on optimization is one of the largest factors contributing to the brand’s supply chain success.

The retail giant is constantly striving to improve existing systems and processes to create an optimized and efficient supply chain to provide their customers with “everyday low prices” — one of the company’s unique (and renowned) selling points.

Among the many supply chain optimization strategies, the company places great emphasis on omnichannel — multiple channels available to its customers. Walmart’s Marketplace creates a home for thousands of retail stores with the ultimate goal to save time for the consumer.

Walmart also provides multiple marketplace fulfillment options, such as in-store pickup, ship from store, and even digital pharmacy fulfillment. Globally, Walmart offers 7,000+ pickup locations and 5,000+ delivery locations.

Fine-tuning the supply chain management system

Walmart is constantly striving to improve their supply chain management system.

From the get-go, the company started removing links within the supply chain and purchased goods in bulk to be transported directly to their stores.

They then began working directly with manufacturers and distributors to cut out the middleman to further streamline the supply chain.

This approach plays a key role in their supply chain success. With fewer players in the supply chain, the company can lower costs and cut back on lead times to offer quick and affordable fulfillment .

Developing strong relationships with vendors early on

Walmart’s strong relationships with vendors have played a major role in their supply chain success. They go straight to the source and identify vendors who can provide them with the best price and can meet their high-volume demands.

Walmart establishes strategic partnerships with these vendors, guaranteeing them consistent business through long-term, high-volume purchases. In return, the company can enjoy wholesale prices, which keeps customer prices competitive throughout the years.

To further strengthen these relationships, Walmart also establishes open communication networks with their vendors. This allows them to improve the flow of inventory within the supply chain and anticipate possible disruptions before they escalate into larger problems, such as backorders , stockouts, and delivery delays.

Outsourcing inventory control with vendor managed inventory (VMI)

Walmart has further strengthened and simplified their supply chain by implementing a vendor management inventory (VMI) model.

VMI involves suppliers managing their own inventory that’s stored in Walmart’s warehouses. With this approach, the company puts the responsibility of managing inventory in the hands of suppliers, so they can save time and money on inventory management.

With an electronically backed VMI system, suppliers have access to Walmart’s inventory data, allowing them to keep track of real-time inventory levels and sales. This makes it easy monitor how much stock is available and how certain products are sold.

Based on this information, they can see when they need to send more inventory to Walmart and keep their stock replenished.

This simplified inventory management model results in fewer delays in replenishment and reduces stockouts. It’s particularly useful since Walmart deals with hundreds of thousands of SKUs from thousands of suppliers, which can get complicated and expensive to manage.

By transferring some of the inventory control activities to the vendors, the company can save time and focus on tasks that need to be handled in-house.

It also means that Walmart doesn’t need to spend more on dedicated personnel to manage the inventory coming from each supplier, which results in lower costs for them. All Walmart has to do is monitor the transport of inventory from warehouses to their stores.

Capitalizing on the power of technology

As Walmart undergoes a digital transformation , they’re making extensive investments in supply chain digitization and infrastructure. These investments have contributed to the successful supply chain that we see today.

Between 2019 and 2020, 72% of Walmart’s strategic capital expenditures were attributed to supply chain transformation , which includes supply chain technologies, infrastructure, and ecommerce. During this period, the company spent more than $11 billion.

These investments have resulted in faster, more flexible fulfillment , and more accurate demand forecasting .

Walmart also uses technology in their initiative to reduce packaging waste. Packaging algorithms make it easier to find the right-size packaging for each product by accurately capturing product dimensions and other attributes.

Additionally, Walmart has implemented an advanced warehouse management system (WMS) in their distribution centers . This more nuanced WMS supports better inventory control and labor planning to streamline their supply chain operations .

Overall, one of the largest technological investments they’ve made is in automation. Autonomous mobile robots are helping warehouse staff move pallets, while other automation tools are used for picking items or packing them inside containers.

Walmart has also made significant investments in sortation equipment, which will automatically sort products and allocate them to the right locations within the warehouse. Robust warehouse control systems help to establish a link between these automation equipment and the WMS.

ShipBob is an official Walmart partner and participates in Walmart’s TwoDay delivery program .

ShipBob’s fulfillment platform integrates with Walmart Marketplace to display free 2-day delivery badging and fulfills 2-day orders approved by marketplace sellers.

Here is how ShipBob’s integration with Walmart works.

Two-day shipping

By connecting ShipBob with Walmart , businesses can provide two-day shipping with 100% coverage across the continental United States.

You can connect your Walmart store to ShipBob in minutes, sync your inventory, and choose what fulfillment center locations to send inventory to.

Your “Free 2-day delivery” badge will appear prominently near the “Add to Cart” button, which captures attention and generates, on average, 50% more conversions.

ShipBob’s on-time delivery rate is over 95%, which provides merchants with reliability and speed.

“DTC is our bread and butter, and with ShipBob we can offer 2-day shipping, gift notes, and other aspects of the modern delivery experience that consumers want.” Aaron Patterson, COO of The Adventure Challenge

Warehousing

ShipBob offers warehousing solutions to help you manage your inventory more efficiently. When you outsource fulfillment to ShipBob, our team of fulfillment experts take care of the entire process of receiving, storing, and managing your inventory.

By storing your inventory across one or more fulfillment center location, you benefit from lower warehousing costs while also improving delivery speeds.

Once ShipBob receives your inventory and orders are placed on Walmart.com, they are automatically sent to ShipBob to be picked, packed, and shipped.

From the ShipBob fulfillment platform, you can track activity, manage SKUs and inventory levels across locations, and view storage costs.

“ShipBob’s analytics are a huge bonus for a merchant looking to partner with a single 3PL that has a built-in order management tool. I was so stoked about being able to see the optimized layout of where you should be distributing your inventory is great. Having inventory and warehouse management capabilities built into your 3PL is such a value-add, especially for smaller companies.” Juliana Brasil, Director of Operations at Food Huggers

Inventory management

ShipBob’s inventory management tools further simplify the fulfillment process by providing a single dashboard to view real-time inventory levels across locations.

With real-time insight into inventory, you can get ahead of inventory replenishment, access data to improve demand forecasting, and make better business decisions.

You can even keep track of the number of units sold per day, so you know when to prepare for inventory replenishment. From the ShipBob dashboard, you can use the inventory data available to set reorder points to prevent stockouts .

Walmart integration

ShipBob’s integration with Walmart improves product visibility on Walmart Marketplace while also having your orders fulfilled through ShipBob.

Thanks to ShipBob’s omnichannel fulfillment capabilities, your inventory levels are updated in real time to reflect the purchases across all your sales channels, including Walmart. This way, you don’t end up accidentally selling more products than you have in stock.

With the Walmart integration, you can get your products in front of millions of customers and provide a seamless order fulfillment experience.

To learn more about how ShipBob partners with Walmart, contact ShipBob today.

Here are answers to the top questions about Walmart supply chain.

Does Walmart have its own supply chain?

Yes, Walmart has one of the largest supply chains in the world. Their nuanced supply chain establishes a more direct relationship between vendors and end consumers. Walmart runs their own distribution centers and partners with logistics companies like ShipBob to further expand their supply chain network.

What is Walmart’s supply chain strategy?

Walmart’s supply chain strategy is highly focused on direct, long-term relationships with manufacturers, distributors, and ecommerce businesses. The goal is to reduce the number of touchpoints within the supply chain to reduce lead times and speed up fulfillment. Walmart also heavily invests in supply chain technology to improve efficiency and accuracy throughout their network.

What are the advantages of selling on Walmart Marketplace?

Selling on the Walmart Marketplace will give you access to the retailer’s 120+ million monthly customers. This means you can get your products in front of a massive audience, which will improve the chances of boosting sales. Moreover, the Walmart Marketplace doesn’t charge you any monthly fees. Marketplace fees are commission-based, which means you only pay a fee when you make a sale.

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Written By:

Meredith Flora

Meredith is a Content Marketing Specialist at ShipBob, where she writes articles, eGuides, and other resources to help growing ecommerce businesses master their logistics and fulfillment.

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Detailed discussion on Walmart’s supply chain management

Your report needs to include the following:

a brief overview of the organisation and its supply chain within the select scope. You can delimit the scope, for example, by focusing on a set of products/services or by addressing a part of the supply chain. Here you are also required to provide a high-level map of the supply chain using simple tools available in MS Word. (i.e. no need to use special software).
critical analysis and evaluation of the following three areas within the supply chain of the organisation:
supply chain complexity
supply chain risk management, and
supply chain sustainability
three well-justified recommendations to improve a set of supply chain performance measures based on your analysis and evaluation above (i.e. one for each), plus discussion on how each recommendation could be applied.
a discussion section on how the future of the organisation’s supply chain should look, reflecting on what we learn from the ‘supply chain of the future’ sub-topic (e.g. see ‘emerging mega-trends’ or ‘seven major business transformations’) or ‘managing the global supply chain’ topic.

Introduction Supply chain is analyzed as the process of suppliers needed for creating the specific product for the organization. Walmart’s supply chain management is considered to handle as well as optimize the process of supply chain which includes the goods and services. It is considered as important in the commerce. The effective strategies are required to be followed for the supply chain management. The report includes the analysis of Walmart’s supply chain management. In supply chain, the three areas which are supply chain complexity, supply chain risk management and supply chain sustainability will be discussed in the report. The recommendations to the organization will be provided to improve the set of supply chain performance measures.

Overview of the organization and its supply chain in distribution

Walmart is engaged in wholesale and retail business where they maintain a various outlets and warehouses across the world. The company provides various goods and services at low prices every day. It operates from various business units like Walmart USA, Walmart Sam’s Club and Walmart International. The US division of Wal-Mart is a purchaser of consumer products. Under the walmatrt, they have Wal-Mart, Walmart neighborhood markets, along with walmart.com and other brands in e-commerce market. Walmart International manages various hypermarkets, supermarkets, super centers, warehouse clubs, and cash and withdrawals outside the US. The Sam Club section includes the membership of samclub.com and warehouse club. The company was founded in 1945 by Samuel Moore Walton and James Lawrence Walton and having their headquarters in Bentonville, Pennsylvania, USA.

Wal-Mart earlier has a small share in the logistics and supply chain industry. The American retailer has a stock of products that came from 70 nations across the globe, has more than 11,000 outlets, and manages a huge inventory worth US$33 billion. From household furniture to clean food, Walmart has every type of stock. As per many experts, the technology used by Walmart allows them to forge such a vast network. Walmart has commence their chain from 1962 and keep on updating their technology to improve the business and customer base on recurring manner. Companies in their supply chain synchronize their expected sales through planning, collaboration, forecasting and replenishing systems.

Walmart’s supply chain management

Each chain is connected by the database system which is centrally organized and a sale system which is store level linked along with a satellite system (Golicic aand Smith, 2013). When implementing their supply chain strategies, the company does not engage in the business of cooperating and sharing information with other parties. Walmart has truly changed the retail industry through its collaborative approach of exchanging the information among their suppliers, distribution centers and stores. In order to provide a seamless experience of shopping and provide the functions necessary to promote growth, it is making tremendous efforts, from changing the appearance of the store to implementing novel technologies for its employees (Dao, et al., 2015).

Source: (Dao, et al., 2015)

What are the three areas of Walmart’s supply chain management? In the Walmart’s supply chain management, the various areas are included which are required to be analyzed for the achieving the objectives. The three major areas which are evaluated in the Walmart are supply chain complexity, supply chain risk management and supply chain sustainability.

Supply chain complexity The complexity of the supply chain is caused by multiple factors, which are usually the result of increasing customer hope for faster delivery times, customized experience and expanded products. These determinant force owners of the brand to provide customers with more unique orders in their entire supply chain, need to strengthen cooperation with business owners, improve the management of inventory with supply vendors, and have deep visibility and control in all steps involving supply chain. An answer to why complexity exists in the supply chain is that expectations of the customers have turned out greatly over the few years in the past (Christopher, 2016). Buyers are eager to maintain transparency and flexibility in the process of their purchase, and make unique fulfillment idea a necessity, majorly for organisation that want to maintain or grow their commerce with their existing customers. Some of the expectations include are mentioned in below paragraph.

Whether it is B2C delivery on the same day or B2B order-to-order fast delivery, It is observed that the delivery cycle has been greatly shortened to meet customer needs. Although this can act as a source of advantage among its competition a few years back, it is a must in the economy of today. Walmart has maintained and improved its delivery cycle to create the image among customers. Moreover, customers want to track the status of the delivery of the order made by them where they need an effective tracking mechanism. They do not expect a fast delivery but wanted to maintain accuracy regarding the timeline within which the order is going to deliver. Walmart had also faced such issues in their delivery mechanism and need to involve an effective technology to support such requirement. Furthermore, business expectations greatly affect the complexity of the supply chain. Most of the corporates do not desire to keep the status quo, but want to go beyond it. The world post internet provides huge opportunities for every company to expand its business scope and cover a larger and wider customer base. However, this growth has greatly increased the complexity to satisfy new consumers. Some of its factors includes the expansion of market where in order to increase more turnover, business need to increase its reach to different market, involving new supplying vendors, faster delivery modes and customer satisfaction. Acquisition of other business is also a way to expand where business purchase another business in same line in order to remove the competition and enhance the customer base (Mangan and Lalwani, 2016). Walmart have followed the same approach in order to reach its business existence in various parts of the world and have remarked its position in the market. Apart from this, the relationship between suppliers and partners is essential to expand your influence among existing customers and reach new customers. However, maintaining such relations that are critical to satisfaction of customers and evaluating, negotiating, and optimizing these affairs that add on complexity. Collaboration between suppliers and understanding of partners is critical to success. The company keep on facing such issues in Walmart’s supply chain management and have enrolled various managers to mitigate such complexities (Negi and Anand, 2014).

Supply chain risk management In this, there are various aspects which needs to identify to mitigate the evolving risk. Such components are mentioned below.

Operational Coordination: This includes cooperation between suppliers and company by aligning the supplier's product flow with the speed of retail. Walmart, the largest retailer in the United States, achieves this goal through supplier-managed inventory. By this model, Walmart enables suppliers to access the data related to point sales, and with such data, the vendor is responsible for maintaining shelf inventory. They send products automatically on inventory and sales. Although this poses risks to suppliers, it also has benefits (Tan, et al., 2018). First, it helps in avoiding over inventory and easy stock outs, which can lead to the need for discounts. Second, through various sales promotions, they can predict the sales and demand. This mechanism also helps Walmart to keep the everyday low prices and maintaining its value.

Push mode: Traditionally, the cost of production is optimized by pushed mechanism. If the prediction is wrong, it will push up the inventory efficiency, but it is risky, and due to obsolescence, reduction, and storage, one cannot understand the actual cost of inventory. Switching to the pull system that responds to customer needs will affect efficiency of production and increases its effectiveness, thereby diminishing the risk of overstocking (Barney, 2012).

Determining the risk appetite of operations: It usually does not adequately address the degree of risk that the company is willing to accept or pursue its goals. If an organization knows it, then it can have conflicting and multiple views from various individuals and departments within the company. The top priority of the organization is to manage the efficiency and risk (Waters and Rinsler, 2014).

Design of supply chain: Walmart’s supply chain management operates in various ways, reflecting the characteristics of product, capabilities of vendor and customer needs. The design of supply chain does also involve various mechanism to support the transportation of products with optimized transportation, promote reverse mechanism to repair of dispose products. The design of its supply chain must be created on the equilibrium between operational risk and performance. Walmart has strong logistics mechanism and sometimes faces issues which they keep on updating through various channels (Allen, et al., 2014).

Assessment of resilience of operation: Resilience means the capability to recuperate from a disaster or adapt to hardship, rebound from an incident, and reach a stronger condition than previous to the interruption. Its value came from predicting the duration and cost of harm and taking steps to reduce both. Here the cost is computed from the inaction. Company will be able to increase the layer of effective risk only when the disruption cost is more than the cost to reduce risk (Van der Vorst and Beulens, 2012).

Supply chain sustainability A truly sustainable supply chain will not cause damage to social or natural systems, and at the same time will generate profits over a longer period of time. If customers are willing to establish a truly sustainable supply chain, continue to do business, a supply chain sustainability is calculated by the triple base line i.e. planet, profit and impact on people, which is considered as major component of supply chain.

Supply chain act as a linkage between a output function and input function in Walmart. In addition to conventional challenges, like reducing costs, ensuring punctual delivery and shortening a time of transportation, new challenges facing environmental friendly goods also include new measures that are conducive to logistics management. This change in paradigm normally reflects people's understanding that profitable supply chains can only come through sustainability (Nguyen, 2017). When considering sustainability, various organisation consider business operations of their own. As a result, the correct cost pertains to environment cannot be computed out. It is also possible that the waste remain untouched in the supply chain. Now, the sustainability of the supply chain can be computed out, and the supply chain can formulate a sustainable action plan. Walmart’s supply chain management needs cooperation to establish a successful and sustainable supply chain. Through collaboration, the supply chain can share allocations, so half of the empty vehicles would not return back to the destination. Similarly, the products pertains to same address can be delivered on the same truck. They can also jointly invest in canals, airships etc. through some methodology, thereby reducing the impact on environment and reducing costs.

There are 3 levels of sustainability achievement criteria where the first one is called a base level where all the organizations take a small steps in reducing costs such as switching the lights off, recycling paper, switching the idle systems off, etc. Some of measures including technology like teleconferencing, procurement of staff centrally, etc. are addition initiatives taken by the management in this level (Meredith and Shafer, 2019). Another one refer to thinking sustainable where companies have begun to realize the need to incorporate their sustainability into the operation pertains to supply chain and review their stage within the scope of local operations. The supply chain involves rationalization and optimization of distribution and manufacturing, product design and supplier management, etc. The last level is called scientific sustainability where companies use tools such as benchmarking and audits, which offer a structure for managing the operations of supply chain. In this way, the impact of the environment on the agility, cost, and flexibility of the supply chain network can be clearly assessed. Walmart’s supply chain management highlight green operations and promotes operations to standardize organisation and operations of the government (Chen and Yu, 2014).

The corporate team in management of Walmart has been struggling for most of the past, focusing only on operational efficiency, profits and growth. But now, the company broadened its horizons and established a network of employees, non-profit organizations and various agencies of government. They are collaborating and establishing contacts with different NGOs to enhance the sustainability factor of their supply chain. They will not add costs related to sustainability to customers (Green, et al., 2012).

Recommendations Below are the three recommendations to improve the performance of the supply chain.

Distribution network: The distribution network of the Walmart is the operational hub which company should build. Distribution affects all aspects from tracking of delivery to sales strategy. The major purpose is to enhance the distribution network, which Walmart can achieve through a cluster view or holistic approach which is required for the supply chain complexity. Using the holistic approach, company can check the basic parts in the network of distribution and willing to compute out how the assessories work in synchronized way. If the efficiency is not what Walmart expect, they can determine where the company need to make changes. Unlike the holistic approach, the cluster view combines diagrams, graphs, and other detailed information to help you focus on the flow of company-specific functions. It will help in making the process effective.

Monitoring Cash flows for supply chain risk management: Cash flow monitoring is considered as the basic tool used by various businesses for enhancing supplier management. It is analyzed as essential for tracking the payments of the different department in the process of supply chain and developing tbhe effective plans for understanding the technologies which are usef=d for transferring the money (Christopher, 2016). Simply put, the company is required to understand the process of payments to vendors and logistics companies, how often they are paid, the means of payment, and any fees transferred to consumers. In case of supplier management, payment technology is included for pay bills to the suppliers, like POS machines, electronic pads used by warehouse workers when receiving goods. This can be very good mechanism for Walmart in improving the tracking of their cashflows.

Mapping of supply chain for sustainability: Walmart is required to prepare and follow the map for the challenges which are faced in the supply chain sustainability. The steps includes the inventory suppliers, identification of environmental and social challenges and prioritizing the suppliers efforts. They can adopt the CHSM Hill for the supply chain sustainability strategy for evaluating the products and completing the procedure of supply chain. Effective sustainability requires the communication which is required to be done with the suppliers.

Supply chain of the future Walmart’s supply chain will have a broader outlook for future which are defined below. Fulfillment centers will become a novel kind of store: Company is of view that retail supply chains used to be one-way, but they are now more like spaghetti leading in every direction. This is largely due to organisation changing the way they handle the fulfillment of an order.

The future Walmart’s supply chain management will be digital which will also include the collective strategy development and win- win thinking. It will include the strategic vendor partnerships by constructing the communication as well as relationships with the suppliers to improve the material flow with the low inventory level.

The future supply chain will include the new model which involves to create the virtual network and customer value oriented. Walmart’s future supply chain will be transformed from the supplier-centric to customer centric. In order to face the challenges, the Walmart will be transformed from the functions to the processes of the organizational structure (Christopher, 2016).

The effective technology will be adopted in the future supply chain which is essential for the supply chain strategy. The Radio frequency identification tags will be used which includes the codes for tracking the products. Walmart’s supply chain management strategy can delivers the business with a number of sustainable competitive advantages, containing reducing product costs, reducing inventory costs, improving in-store varieties and choices, and providing consumers with highly competitive prices. The strategy provides help to Wal-Mart for becoming a dominant force in the highly competitive market across the world. With the development of technology, Wal-Mart is required for focusing on innovating process and system for improving the supply chain and increasing the efficiency (Sarkis, 2013).

Digital transformation is considered as the biggest future of Walmart’s supply chain which includes to bring the change in technologies, techniques in the process of supply chain. Walmart can adopt the latest technologies for bringing the change in the supply chain. By using the EDI with suppliers, Walmart supply chain in future will help in cutting the various transaction costs. It will help in linking with the suppliers effectively and maintaining the relationship for the growth and delivering the products.

Conclusion At the end, to conclude it is analyzed that the Walmart adopt the various strategies for managing the supply chain of the business. The key areas of supply chain are analyzed in the report which is supply chain complexity, risk management and sustainability. It is analyzed that in Walmart the areas are required to be evaluated for measuring the performance and increasing the productivity of the organization. The three recommendations are provided for improving the set of supply chain measures. In Walmart, the future of Walmart’s supply chain management which look digitalized by implementing the SCM system. In order to manage the global supply chain, they are required to bring the inventory innovation.

Reference Allen, J., Browne, M., Woodburn, A., and Leonardi, J., 2014, January. A review of urban consolidation centres in the supply chain based on a case study approach. In Supply Chain Forum: an international journal (Vol. 15, No. 4, pp. 100-112). Taylor & Francis.

Barney, J.B., 2012. Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory. Journal of supply chain management, 48(2), pp.3-6.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Dao, N.H.T., Daniel, J., Hutchinson, S. and Naderpour, M., 2015. Logistics and Supply Chain Management Investigation: A Case Study. Walmart’s supply chain management In Service Research and Innovation (pp. 216-230). Springer, Cham.

Golicic, S.L. and Smith, C.D., 2013. A meta?analysis of environmentally sustainable supply chain management practices and firm performance. Journal of supply chain management, 49(2), pp.78-95.

Green, K.W., Zelbst, P.J., Meacham, J. and Bhadauria, V.S., 2012. Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 17(3), pp.292-295.

Mangan, J. and Lalwani, C.C., 2016. Global logistics and supply chain management. John Wiley & Sons.

Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs. Wiley.

Negi, S. and Anand, N., 2014. Green and sustainable supply chain management practices-a study of Wal-Mart. Journal of Operations and Supply Chain Management, 7, pp.141-157.

Nguyen, T.T.H., 2017. Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century. Journal of Economics & Management, 29, pp.102-117.

Sarkis, J., 2013. A strategic decision framework for green supply chain management. Journal of cleaner production, 11(4), pp.397-409.

Tan, B., Yan, J., Chen, S. and Liu, X., 2018, December. The impact of blockchain on food supply chain: the case of Walmart. In International Conference on Smart Blockchain (pp. 167-177). Springer, Cham.

Van der Vorst, J.G. and Beulens, A.J., 2012. Identifying sources of uncertainty to generate supply chain redesign strategies. Walmart’s supply chain management International Journal of Physical Distribution & Logistics Management, 32(6), pp.409-430.

Waters, D. and Rinsler, S., 2014. Global logistics: New directions in supply chain management. Kogan Page Publishers.

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Operations Management Assignment: Supply Chain Management Of WalMart & Amazon

Task: Develop a detailed and well-researched operations management assignment report that identify, analyze, and compare the supply chains of Amazon and Wal Mart. Evaluate the strengths and weaknesses of each. Determine and justify which supply chain is likely to be more effective over the next 5 years.

1. Introduction The present report on operations management assignment sheds light on the concept of supply chain management (SCM) that controls the link among the production, shipments, and distributions of the products. Supply chain management assists companies and it also reduces the costs of delivery of the products. Similarly, the management helps to deliver the product quickly and efficiently to the customer. Any organizations’ supply chain management manages the delivery and manufacturing services of the company. The current report is emphasising the manufacturing and delivering process of Walmart and Amazon in next five years. The management planned out the whole process and helps the company to manufacture the product for the customers. In the current report, the supply chain management of Amazon and Walmart has been discussed. It has been also been justified the effectiveness of supply chain management in the report.

2. Overview of The Organizations Operation and supply chain management (OSCM) manages the broad area of the retail industry to cover both manufacturing as well as a service industry. OSCM controls functions such as material management, distribution, planning, logistics, retail, demand, order fulfilment, and much more. The two biggest American retailer companies, Amazon and Walmart are in constant rivalry. Both of the company made effective changes to develop and meet the expectation of the customer. Amazon work and dominated the online platform where Walmart prevails in physical space.

In 1994 Amazon started its journey as a textbook ordering platform and transformed into diverse e-commerce online platform holding the rank one position in supply chain and company service. Amazon does not relies on their vendors to make the services better, with the help of inventory and warehouses, they can make the services better (Flamand et al., 2020). Amazon.com is a multinational retailer of online e-commerce that was founded by Jeff Bezos. Amazon is well known for its innovative ideas and best pricing principles to expand its reach to verities of customers.

A businessman named Sam Walton started a grocery and big-box store in 1962 that transformed into the largest physical retailer store. Walmart is now operating in 26 different countries with its 11,400 stores, and almost 265 million customers visited the various Walmart stores, estimated by Walmart Corporation. Walmart adopted different sustainable strategies overtime to overcome different issues. Strategies developed with three objectives like 100 percent renewable energy, more sales product, and zero waste (Huchzermeier, 2016).

3. Identification of Supply Chain of Amazon Amazon has its supply chain strategy and has its delivery network. Sellers who sell products on Amazon have different fulfilments options. Sellers can choose from the fulfillment options by Amazon or can do the fulfillment manually. Through the Amazon fulfillment options Amazon can sort, packed the products, and delivered them to their fulfillment center. FBA falls impact the sales and profits of the products (Sun et al., 2020). It affects the profit gap of using FBA and FBS (fulfillment by sellers).

Amazon has added a new feature called Probability Level Demand Forecast, which helps to communicate the inventory demands to vendors. The demand of the consumers can be checked by the sales history of the consumers. The demand for the products can be forecasted through the search history of products by consumers. The supply chain strategy of Amazon includes warehousing, manufacturing, delivering the products.

The main part of Amazon's supply chain management is warehousing. It can make the availability of the products from anywhere from the world. Most of the warehouses are strategically located in the big cities and the inventory of the company is spread amongst them, to meet the demand of the customers. Amazon’s warehouses are also located in smaller areas which can make the delivery of the products faster.

The delivery strategy of Amazon has numerous options. It includes free and two-day Prime deliveries. Prime deliveries can make the delivery of the products within an hour or less. It is the biggest supply chain strategy maintain by Amazon. Amazon saves storage costs by distributing inventory centers (Yu et al., 2016). The retail company also has a different approach while processing the products for delivery.

The company also approached many advanced technologies to pick and pack orders and stacking the products in inventory. The company has also introduced drones through which the orders can be delivered from the nearest inventory. Amazon allows third party invasion in their manufacturing process. It will be profitable for the company. Amazon’s in-house supply chain controls the complete manufacturing process of the products (Bharadwaj, 2019). It advantages the competitiveness in the market.

4. Identification of Supply Chain of Walmart Walmart has 11,510 stores, the majority of which are in the United State, so the majority of suppliers are from the United States. They also have suppliers from Canada, the United Kingdom, Mexico, China, Taiwan, France, Hong Kong, and other countries. Through advanced network technologies, Walmart manages the supply chain management of their organization. The total number of Walmart suppliers is approximately 60,000, which is the largest in the world. Walmart’s largest suppliers are connected by Retail Link with their inventory management system and also suppliers can track their actual sales. Walmart mainly focuses on cost leadership which focuses on end-to-end operational cost at the lowest level along with the highest productivity (Heller, 2017). It has been stated that Walmart has a “mature supply collaboration process” which is supported by modern technology.

Walmart excellently manages its supply chain through technology. Their motto is “collaboration and cooperation with suppliers” which helps to maintain a more efficient supply chain. Walmart manages the delivery process from its inventory warehouses. The company also relies on the vendors and suppliers to manages the SCM of the company. This is known as VMI or “Vendor Management Inventory” which helps to reduce the irregular inflow of inventory and also ensures the availability of products. Integration of demand and management of supply is the essence of supply chain management (Jawad, 2017). Every link is connected by a centralized database management system, store-level sales, and satellite system.

Strategy to expand around distribution centres in which distribution centres are made in new areas supporting new stores.
Use of electric data interchange system which links the suppliers and helps Walmart to control and coordinate in product scheduling and receiving.
Combining store and warehouse using “big box” store format which helps to keep the supply chain steady.

Suppliers of Walmart can synchronize their projected sales through planning, forecasting, collaboration, and replenishment.

5. Analysis of Amazon and Walmart Supply Chains Amazon's supply chain focuses on technological development. The company introduces millions of automation and robotic solutions in the supply chain department. It improves the companies' delivery and efficiency speed. Amazon has the most effective supply chain strategies in the world (Ceil, 2020). It makes the competition in the market fierce. Walmart used an innovative operation that helps support its new planning and offer customers different products at low-price. Walmart provides the same products as Amazon. It can be mentioned that Walmart offers services in Sam’s Club. It helps the customers to have excess to the exclusive savings and fuel savings. Unlike Amazon, Walmart uses everyday low prices services that help them to revive and gain more customers.

The figure is showing the financial sides of Amazon, Walmart, and Alibaba. These five financial factors help to analyse effective strategies (Flamand et al., 2020)

Amazon is the fastest-growing company that earned almost 233 billion dollars in 2018. One of the main forces of transformation is the innovation of an efficient supply chain.

6. Comparison of Amazon and Walmart Supply Chains

7. Justification of Supply Chain Management Developing a supply chain management system in a company creates a future position in market competition. In this paper, analysis is done on two companies to evaluate their efficiency in coming future years. The chosen company is Amazon has developed their supply chain strategy to reduce the operational cost of a middle man and provides better service to their customers (Das, 2020).Reduction in production cost reflects in low price product which attracts more customers. Reduction cost strategy implementation make Amazon company’s strategy more efficient over the next five years. Another chosen company is Wal-Mart company, they develop their strategy for global expansion of their business for this goal they also focus on low price strategy (Heller, 2017).Both of the company focusing on low price strategy.

Only pricing strategy does not make the supply chain management effective for future use. For making supply chain management more effective, it is necessary of handling end toxic products appropriately to prevent their adverse effects on the environment. Amazon Company needs to develop more concern on this for the future safety of the environment. Analyzing the existing supply chain helps the company to identify issues and find solutions globally (Jawad, 2017). Wal-Mart Company also possesses limitations in their existing supply chain by developing the incidents of gender discrimination and improper working environment. Amazon company always focus on maintaining diversity culture in their work place which will make the strategy, effective over next five years. The modification of the supply chain management, of Wal-Mart makes the services of the company exceptional.

The global expansion of the company needs better security for the company otherwise it will damage the company. It also develops the risk for data hacking in large data transfers through the network. Amazon company needs to develop a more strategic plan to avoid the issues of data breaching. Amazon Company also needs to focus on the development of warehousing for enhancing supply chain effectiveness in upcoming years. The thin pricing strategy of both companies also decreases profit rate which needs more concern for increasing effectiveness in supply chain management. Amazon Company always focuses on customer benefits to provide them better service and they always modify their business structure. For this service, they develop a sophisticated way to avoid gathering for shopping (Polacco & Backes, 2018). Amazon company always focus on customer satisfaction this strategy make them more efficient over five years.

8. Conclusion In the report, analysis has been done on the existing supply chain management in two chosen companies. The report also focuses on the manufacturing process for next five years of both companies. In Amazon Company there is some limitation along with beneficial effects that have been discussed in the above paper. Wal-Mart Company's limitation has also been evaluated to guide them to become more efficient in the future. In the current paper, the future of these two-supply chain management has been analysed and their effects on company growth have been discussed.

9. References Bharadwaj, S. (2019). The Engineering Behind A Successful Supply Chain Management Strategy: An Insight Into Amazon. Com. 281–286.

Ceil, C. (2020). Sustainable Global Supply Chains at Amazon. SSRN Electronic Journal, 1–16. https://doi.org/10.2139/ssrn.3520424

Collis, D., Wu, A., Koning, R., & Sun, H. C. (2018). Walmart Inc. takes on Amazon. com. Harv. Bus. Sch. Publ, 30.

Das, S. (2020). Multi echelon supply chain design for Amazon private brands (pp. 1–56). Massachusetts Institute of Technology.

Flamand, O. J., Wisher, A., & Riley, S. (2020). Strategic Plan: Amazon.

Heller, F. (2017). Technological innovation applied to walmart and tesco’s supply chain (pp. 9–10).

Huchzermeier, A. (2016). How Walmart built sustainability into the supply chain. The Business & Management Collection.

Jawad, S. (2017). A literature analysis of Walmart’s supply chain excellence in term of integration, distribution and operations. 1–4.

Nguyen, T. T. H. (2017). Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century. Journal of Economics & Management, 29, 102–117.

Polacco, A., & Backes, K. (2018). The amazon go concept: Implications, applications, and sustainability. Journal of Business and Management, 24(1), 79–92.

Sun, L., Lyu, G., Yu, Y., & Teo, C. (2020). Fulfillment by Amazon versus fulfillment by seller: An interpretable risk?adjusted fulfillment model. Naval Research Logistics (NRL), 1–19.

Trivedi, S., & Madan, M. V. (2018). Amazon Supply Chain Management: A Case Study. NOLEGEIN-Journal of Supply Chain and Logistics Management, 23–27.

Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2016). E-commerce logistics in supply chain management: Practice perspective. Procedia Cirp, 52, 179–185.

10. Appendices

Figure 1 – Amazon Supply Chain

Figure 2 – Walmart Supply Chain

Figure 3 – Supply Chain Link both Walmart and Amazon

Figure 4 – Walmart Vs Amazon

Figure 5 – Comparison between Walmart and Amazon

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How Walmart is Navigating the Supply Chain To Deliver This Holiday Season

By Joe Metzger , Executive Vice President, Supply Chain Operations, Walmart U.S.

Oct. 8, 2021

We have all seen and heard a lot in recent months about supply chain issues across the retail industry. With so many news stories about port delays, increased consumer demand and holiday season forecasting, it’s natural to wonder whether items will make it to store shelves and how this might affect holiday preparations.

But increased demand for the products customers want is nothing new for this time of year, and it’s certainly nothing new for Walmart. We’ve been delivering the holidays for over 50 years. This year, we’re doing even more to help ensure product orders arrive when customers need them.

Knowing the challenges the overall supply chain system is facing, we’re taking additional steps to navigate the hurdles and minimize disruption, so we can deliver for our customers this holiday season. We’ve worked with suppliers to source holiday merchandise earlier than usual and are finding ways to move those products inside our supply chain network as quickly as possible. We have been laser-focused on inventory levels since the start of the pandemic and reported higher inventory in the second quarter this year than a year ago. While we’d like to see inventory levels continue to improve, we’re on the right track.

Here are some of the actions we’ve taken to be in the best possible position to deliver for our customers:

We have chartered ships and diverted shipments through less congested ports.
We’ve rerouted inland shipments, utilizing less conventional transportation methods to avoid rail delays.
We’ve invested in our supply associates through wage investments throughout the year and plan to do so through the holidays to acknowledge their extraordinary efforts, as well as to meet growing customer demand.
We have hired more than 3,000 drivers this year, with more in the pipeline.
We’re hiring 20,000 permanent supply chain positions to help move products through our facilities as quickly as possible.
We’ve promoted and trained thousands of supply chain associates this year, with plans to do the same as many more continue to emerge as leaders throughout our network.
We’ve added storage capacity in our fulfillment and distribution network through new facilities.
We are working to expand our automation capabilities in existing facilities, which helps get products from distribution centers to stores faster.
We’re expanding our delivery capabilities and routing online orders straight from stores .
And, as always, we’re working aggressively to ensure we have associates available to help customers and fill online orders by hiring 150,000 associates across the country , so we’re prepared to serve customers whether they choose to shop in-store or online.

We've always been committed to delivering everything customers need for a great holiday, and I’m proud of the hard work our associates are doing to put Walmart in a position to do that again this year. We know there is a lot of uncertainty as the pandemic continues and customer needs continue to adjust as we head into the 2021 holiday season, but I’m confident in our efforts. Customers can rest assured we’re doing everything we can to deliver a holiday experience they’ve come to expect and help them get what they need for everyone on their gift list at a Walmart value.

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Global Supply Chain Management of Walmart

Global Supply Chain Management of Walmart - Assignment Example

Subject: Management
Type: Assignment
Level: Masters
Pages: 3 (750 words)
Downloads: 0

Extract of sample "Global Supply Chain Management of Walmart"

Facilities and location

The company became well known when they started to contract a wide variety of suppliers to provide large numbers of products at low prices and to deliver them rapidly. Walmart buys huge quantities of products low prices i.e. bulk purchasing. The low prices offered by Walmart for their products attract a huge number of customers. Walmart is also in partnership with other multinational companies like Proctor and Gamble. This partnership has proved to be beneficial to both companies.

Supply chain management

Walmart follows the concept of centralization in the distribution of their products. Around 80% of its goods are shipped to stores from their US center and the remaining 20% is shipped directly by suppliers. Walmart products are distributed and replaced every two days in bulk quantities (University Alliance, 2014.) In terms of logistics management, Walmart uses its own vehicles to deliver goods from the distribution center and provides recreation areas for the drivers. In order to check the proper delivery of products, the company monitors the orders from when they leave the warehouse until they reach the customers. The company also performs efficient inventory management in order to properly handle the records of the products.

International business strategy

Walmart follows many different strategies to attract its international customers and suppliers and has expanded into the grocery market also. The main emphasis is on a constantly available supply of low cost, high-quality products. Walmart stores also focus on the products that are popular and in-demand among its customers according to their location. The main strategy is to supply the required products to the customer at low prices University Alliance (2014), Walmart makes every effort to understand its competitors in the market and performs accordingly. It values its suppliers and manufacturers, as they are the economic partners of the company. In countries other than the US, Walmart is known by a number of different brand names, for example in Mexico, it is known as Walmart de México y Centroamérica, in the UK it is known as Asda, in Japan it is called Seiyu and in India, Best Price.

As the company operates its stores in so many different countries, it follows strategies that are appropriate to these locations in order to satisfy customer needs. In China, for example, Walmart has opened its stores in areas where distribution facilities can be easily accessed (Cramer, 2014). In Canada, the company pays more attention to the clothing side of the business, as many other clothing companies present tough competition for Walmart. In Mexico, the company has revised its sales. Walmart is also planning to enter into e-commerce.

Walmart believes in the main strategy of providing customers with the required goods at low prices and as rapidly as possible. In the context of strategic sourcing, the company identifies suppliers that can deliver the products to the company at the best prices. Once these suppliers are in place, Walmart works on establishing long-term working relationships and good communication. The company implements and manages a cross-docking practice of products. This technique lowers the cost of transportation and improves delivery timings by removing inefficiencies (Cramer, 2014). The company also adapts to technological changes by incorporating new technologies and adapting the processes and systems in order to maintain an efficient supply chain. Technology is used to track store inventories and replace products quickly and in sufficient quantities. Walmart also makes use of the most recent developments in barcode and handheld technology. Due to these strategies, the company has established a dominant position in the global market.

The global supply chain of Walmart has proved to be very beneficial for the company in the competitive market. It includes maintaining products at low prices and enhances a variety of stores. In order to attain a good position in the international market, Walmart has established a well-planned and organized concept of global supply chain management. However, there are a number of drawbacks that are yet to be improved. The company must focus on the inventory management of their products. As they are getting involved in e-business so the management of products in sufficient quantities is becoming an issue for the company, therefore they must properly manage their products. The company can also use computerized logistics systems in its cross-docking methods.

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SUPPLY CHAIN MANAGEMENT – WALMART

Assignment Record Form

Student Name: ????? ???? ??

University of Derby Index Number: ??????

Learning Centre:

Course: MBA

Term: 2012 T2

Module Title: Strategic Logistics & Supply Chain Management

Module Leader:

Assignment Submission Due Date:

I confirm that I have read and understood the University regulations with regard to referencing and plagiarism. YES NO

Module Leader’s Comments:

Word Count: ???? 4500 (+/-10%)

Module Leader’s Comments on Citing & Referencing

EXECUTIVE SUMMARY ( 300-350 Words )

Guidelines:

o ES is the summary of the whole assignment . It should be written after you have completed your assignment

o About 300-350 words ( Or About 1 page in length )

o ES should be written on a separate page

o Generally, there is no page number for ES unless you want to use “ Roman Numbering ” such as I, II, III etc. The first page should start from Introduction.

o ES should be arranged before the “Table Of Contents”

o ES should be written in “ Past Tense ”

o ES should be written in paragraph P1, P2, P3, & P4 etc.

P1: …………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………………………………………

P2: …………………………………………………………………………………………

P3: …………………………………………………………………………………………

P4: …………………………………………………………………………………………

TABLE OF CONTENTS

PAGE

1.0 INTRODUCTION 00

2.0 COMPANY BACKGROUND

2.1 Background Information 00

2.2 Main Products & Customers Or Business Activities 00

2.3 Current Situation 00

3.0 OVERVIEW OF SUPPLY-CHAIN OPERATIONS REFERNCE

(SCOR) MODEL

3.1 SCOR Model Level 1 00

3.2 SCOR Model Level 2 00

3.3 SCOR Model Level 3 00

3.4 SCOR Model Level 4 00

4.0 APPLICATION OF THE SCOR MODEL METHODOLOGY

Three steps to applying SCOR Model for supply chain performance and improvement are described as follows:

4.1 Process Modelling 00

4.2 Performance Measurements 00

4.3 Best Practice Implementation 00

5.0 APPLICATION OF NEW TECHNOLOGIES 00

5.1 Bar Coding & Scanning 00

5.2 Radio Frequency Identification (RFID) 00

5.3 Radio Frequency Tags (RFTs) 00

5.4 Electronic Data Interchange (EDI) 00

5.5 Electronic Commerce (E-Commerce) 00

5.6 Internet 00

5.7 Enterprise Resource Planning (ERP) 00

6.0 CONCLUSIONS 00

7.0 RECOMMENDATIONS 00

8.0 REFERENCES 00

9.0 APPENDICES 00

YOUR ASSIGNMENT SHOULD START FROM HERE !!!!!!

1.0 INTRODUCTION

P1: Describe the Supply Chain Management

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

P2: Describe briefly the SCOR Model

P3: Describe briefly the Integration of the Supply Chain

P4: What is the purpose of this assignment?

2.1 Background Information

2.2 Main Products & Customers

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

2.3 Current Situation

3.0 OVERVIEW OF SUPPLY-CHAIN OPERATIONS REFERNCE (SCOR) MODEL

Source 1 : ???????????????????

Source 2: SCOR Model (SCOR Overview Version 9.0)

3.1 SCOR Model Level 1

3.2 SCOR Model Level 2

3.3 SCOR Model Level 3

3.4 SCOR Model Level 4

4.1 Process Modelling

Refer to Chapter 2 : The SCOR Model (P.90-93)

>>The Process Modelling Pillar

4.2 Performance Measurements

Refer to Chapter 2 : The SCOR Model (P.93-94)

>>The Performance Measurements Pillar

4.3 Best Practice Implementation

Refer to Chapter 2 : The SCOR Model (P.94-95)

>>The Best Practice Pillar

5.0 APPLICATION OF NEW TECHNOLOGIES

5.1 Bar Coding & Scanning

5.2 Radio Frequency Identification (RFID)

5.3 Radio Frequency Tags (RFTs)

5.4 Electronic Data Interchange (EDI)

5.5 Electronic Commerce (E-Commerce)

5.6 Internet

5.7 enterprise resource planning (erp).

o Vendor Managed Inventory (VMI) is the system of demand management & replenishment. (Refer to Christopher p.203)

6.0 CONCLUSIONS

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

7.0 RECOMMENDATIONS

8.0 REFERENCES

Guideline 1: Follow the Harvard Referencing

Guideline 2: All the references must be arranged in “Alphabetical Order”.

9.0 APPENDICES

ADDITIONAL USEFUL INFORMATION

Assignment Question

Supply Chains and Value Chains have been around for many years and Logistics has

served as glue to bind the different members. But in the current era of globalization new

problems are surfacing in the supply chains (e.g. politics, and terrorism).

Critically evaluate the new Logistics, Supply Chain and Supply Chain Management issues suggest how Strategic Management can help to bring a supply chain to a new maturity level, say from the current level to one level higher, say from level 3 to Level 4.

The SCOR Model and the application of new technologies (hard and soft) offer an

opportunity to bring a supply chain to a new level of performance. How could a supply chain capitalize on the application of the SCOR Model Methodology to minimize the total supply chain Inventory in the Order fulfilment Value Stream and yet raise the service level to the final customer?

Craft a practical strategic plan for minimizing total supply chain inventory in the Order fulfilments Value Stream for your selected supply chain.

Note for Student

The selected supply chain should preferably a real supply chain in your country. Its

description should be included in the Appendix. In your written assignment you need not

describe the SCOR Model .

EXECUTIVE SUMMARY

Wal-Mart being the largest retail store across the globe has been chosen for studying the strategic Logistics and Supply Chain Management. The tiniest change on the store layout is being sensed at Wal-Mart and several merchandising techniques are used by Wal-Mart to provide value to the customers and improve the performance. Wal-Mart has always been reaping the benefits of being effecting in Supply chain management and Logistics. It also enjoyed the benefits of low transportation costs because it has its own transportation system which helps in delivering the goods within 48 hours.

The Supply Chain Management system of Wal-Mart is efficient as it reduces the lead time which helps in faster inventory turnover. Using the SCOR Model which has four levels that is the Top Level, the Configuration Level, The Process Level and the Implementation Level Wal-Mart has made its supply chain management very effectual. It can plan, make, source and deliver all the products by channelizing the whole supply chain management system.

The effectual supply chain management practices along with the three pillars supporting the SCOR Model of the company that is the Process Modelling, Performance Management and Best practice Implementation have helped it to rise above its competitors in the market.

The usage of the latest technology and implementation of that technology like the bar coding and Scanning, RFID implementation, Radio Frequency tags, Enterprise Resource Planning, E-commerce website development , Electronic Data Integration and Internet presence have added to the success of Wal-Mart. They have helped in reducing the inventory cost and replenishment of products on shelves on time and closely connecting with the customers. That is why Wal-Mart has been considered the topmost retailer which is always ready to offer the lowest price to their customers and stay ahead.

Table of Contents

EXECUTIVE SUMMARY.. 2

1.0 INTRODUCTION.. 4

SCOR MODEL. 5

Integration of Supply Chain. 5

Purpose of this assignment 6

2.0 COMPANY BACKGROUND.. 7

2.1 Background Information of company. 7

2.2 Main products and Consumer 8

2.3 Current Situation. 10

3.0 OVERVIEW OF SUPPLY CHAIN OPERATIONS REFERENCE SCOR MODEL. 11

3.1 SCOR Model Level 1. 11

3.2 SCOR Model Level2. 12

3.3 SCOR Model Level3. 13

3.4 SCOR Model Level 4. 13

4.0 APPLICATIPON OF SCOR MODEL METHODOLOGY.. 14

4.1 Process Modelling. 14

4.2 Performance Measurement 14

4.3 Best Practice Implementation. 15

5.0 APPLICATION OF NEW TECHNOLOGIES. 15

5.1 Bar Coding & Scanning. 15

5.2 Radio Frequency Identification (RFID) (Moorman, 2005) 15

5.3 Radio Frequency Tags (RFT’s) 16

5.4 Electronic Data Interchange (EDI) 16

5.5 Electronic Commerce (e-commerce) 17

5.6 Internet 17

5.7 Enterprise Resource Planning (ERP) 17

6.0 CONCLUSIONS. 18

7.0RECOMMENDATIONS. 19

8.0 REFERENCES. 20

Bibliography. 20

9.0 APPENDICES. 22

Appendix 1: 22

APPENDIX 2. 23

Appendix 3. 24

During the last two decades Supply Chain Management (SCM) has emerged as a management concept and at present many international companies have adopted as well as implemented this new concept in their organisation for e.g. Zara, Procter & Gamble, DELL Computers, Nike, CISCO, Nokia, and Gillette etc. The reason being the competitiveness of the organisations depends highly on their capability to deliver customised products timely and as quickly as possible all across the globe (Jespersen and Skjott-Larsen, 2005). That is why SCM has become a vital management tool and an important parameter for being competitive for the companies.

All the major activities and organisations which are related with the flow and conversion of goods from the stage of just being raw materials, through to the end users, along with the various associated information flows are called Supply Chain (Handfield and Nichols, 2002). IN any supply chain both, material and information’s flow upwards and downwards. Supply Chain Management is the perfect integrating and management of supply chain organisation and their activities by developing co-operational relationships between organisation, Effectual business processes and information sharing at very high levels in order to form high-performing value systems which give the member organisations a competitive advantage to sustain in the market (Handfield and Nichols, 2002).

The management of upstream as well as downstream relationships with not just suppliers but also with customers so that superior customer value could be delivered at a much lesser cost to the supply chain on the whole is referred to as SCM . The figure below depicts a simple supply chain model:

The innovative tool for cross-company optimization done for supply chains which is helpful in describing the fundamental functionality of any supply china which is competitive sis called Supply Chain Operations Reference (SCOR) Model. It facilitates the following three tasks :

Evaluation of performance of supply chains and comparison with the benchmarks.
Suitable orientation and suggestions through interfering, for the usage of software and the functionality existing in the supply chain should be found.
Design of the supply chains should be thoroughly integrated

SCOR Model is basically set-up in hierarchical manner and contains four different levels:

Configuration Level
The Process Element Level
The Implementation Level

Step by step the degree and level of concretisation increases in the model and all the levels of SCOR model follow separate objectives to be fulfilled .The complete supply chain and all the strategic tasks related to it are taken care of under the Top Level and the Configuration Level of the SCOR Model. Whereas the Process Element level and the Implementation Level take care and bring into attention all the different processes of supply chain .

All the interactions of the customers starting form orders to the payments are being contained in the SCOR Model along with the all physical material flows and the corresponding information flows .

Integration of Supply Chain

Integration has been defined as the quality of state of collaboration which should exist between various departments of the organisation which are needed to accomplish the unity of efforts through the factors of demands of environments (Lawrence and Lorsch, 1967). There are four stages of organisational integration in supply chain organisations which are defined below:

Stage I: Fragmented operations within a company which is fragmented.
Stage II: Focus on limited amount of integration between the adjacent functions of organisation like material controls and purchasing etc.
Stage III: Internal integration of end-to-end planning in company which is individual.
Stage IV: Depicts True supply chain integration as it covers the upstream integration with suppliers and downstream integration with the customers.

The typical three dimensions of supply chain integration are (Lee, 2004):

Information Integration
Resource Sharing and Coordination
Organizational Relationship linkage

Sharing information and knowledge between the supply chain members which includes production plans, promotion plans, inventory status, and sales forecasts etc is called Information Integration (Skjott-Larsen et al., 2007). Realignment of results or conclusions and supply chain responsibilities fall under Resource Sharing and Coordination. Performance measurements, sharing the same objectives and visions and effectual communication between members are included in the Organizational Relationship Linkages (Skjott-Larsen, 2007). Thus supply chain integration is a combination of organizational and information integration.

Purpose of this assignment

The phenomenal growth of Wal-Mart is being accredited to the continuous focus on the needs of their customers and effective cost-reduction which is possible all because of efficient and effectual Supply Chain Management Practices followed by Wal-Mart. Supply chains as well as Value Chains have always been part of SCM in Wal-Mart for past so many years. Logistics has effectively worked in binding all the different members of organization as glue. But in the current era of globalisation, there are new problems which are being faced by supply chains system if Wal-Mart, or any other organization.

The problems and issues like politics and terrorism etc. have been surfacing now and then and through this report we will try to find out how all these issues or problems can be tackled through effectual Strategic Management .By creating new and refined Logistics, Supply chains and Supply Chain Management systems which can be brought to a new maturity level, these issues related to supply chains can be handled. Application of new technologies in Wal-Mart and SCROR Model will definitely help in bringing supply chain at Wal-Mart to a new and higher level of performance. Right way of applying the SCOR Model Methodology will help in capitalizing and minimising the total supply chain inventory at the Wal-Mart. This will help in reducing the supply chain inventory in the Order Fulfilment Value Stream, which will automatically raise the service level provided to the final customer by Wal-Mart.

With the help of SCOR Model a strategic plan can be drafted which will help in minimising the total supply chain inventory in the organization by applying it to the Order Fulfilment Value Stream of Wal-Mart.

2.1 Background Information of company

Wal-Mart has been ranked the world’s largest retail company and ranked at the top amongst all the retail companies in the year 2002 as can be seen from Appendix 1. The founder of Wal-Mart Sam Walton was born in 1918 at Kingfisher, Oklahoma in U.S. After displaying good qualities of a salesman in his first job at J C Penny, he realised the importance of developing customer loyalty and close relationship with the employees. In mid-1940’s he gave up his job and decided to set up a retail store owned by him and purchased a store franchise from Ben Franklin located in Arkansas, Newport. From here he learnt his first lessons of retailing that is giving significant discounts on several products in order to increase the profits and to expand the volumes of products sold.

By 1969, Walton had expanded the Wal-Mart stores to 18 with an annual sales reported to be $44millions. IN 1980’s the store kept on growing multi-folds due to huge customer demands in small towns where the Wal-Mart stories were located in abundance. Most of the Wal-Mart stores were located in huge warehouse-type structured buildings which were situated at very convenient and approachable place. Walton’s aim was to target all the customers who buy merchandise in bulk. That is why by 1984, the number of wall-Mart stores expanded to 640 in U.S. with a sales of around $4.5 billion and accruing profits of more than $200 millions. By the year 2000 Wal-Mart became the largest company in terms of revenue and the credit for this phenomenal growth goes to incessant focus on the customer needs and cost reduction of the products due to efficient and effectual supply chain management system and best practices followed at Wal-Mart.

The huge range of products offered by Wal-Mart in shortest possible time and that too at the lowest cost was possible because of only two reasons:

Highly automated Distribution Centres of Wal-Mart which helped in reducing the shipping time as well as the costs.
Computerised Inventory System at Wal-Mart which helped in quickening the check-out time of inventory and faster recording of the transactions too.

2.2 Main products and Consumer

The total range of products offered by Wal-Mart is huge and has been categorised in to various sections as listed below (WALMART, 2012):

Electronics & Offices
Movies, Music and Books
Auto & Home Improvement
Home , Furniture & Patio
Apparel , Shoes & jewellery
Gifts, Craft and Party Supplies
Baby & Kids
Toys & video games
Pharmacy , Health & Beauty
Sports, Fitness & Outdoors
Grocery & pets

Under all these products categories Wal-Mart has to offer Store Brands/ Generic Brands/ House Brands which are simple low cost alternatives for famous brands. However Wal-Mart does have private labels too of various companies too. Some of the major brand products which are offered by Wal-Mart are (List of Walmart Brands, 2012):

Great Value
Special Kitty
Dr. Thunder
Sam’s Choice
Parent’s Choice

The core-customer base of Wal-Mart is the low income households, who want to spend every cent in buying the product with value and this is what Wal-Mart has to offer. Wal-Mart has been revolutionising the lives’ of its consumers in small towns and lower income groups by providing them quality and efficient products at low prices (Wiederman, 2012). This is how it has been successful in aerating a flourishing retail empire not just in U.S. but all across the globe. But recently the consumers of Wal-Mart’s products have shifted their buying pattern to various other retailers and Amazon is one such competitor which is taking away many customers of Wal-Mart (Wiederman, 2012). Moreover the biggest competitor which is eating away Wal-Mart’s share is Costco which is a member-only warehouse chain and is targeting Wal-Mart’s customers.

2.3 Current Situation

Technology is something inevitable in this era and this is the strategy which runs in Wal-Mart too. The above given description of Wal-Mart and its ever expanding business shows that how much diversified Wal-Mart is and the massive volumes of cargo it might be handling every minute to run its business smoothly is something beyond imagination without technology. Traditionally Wal-Mart adopted technology by simply computerising its stores individually and small machines were installed in every store for computerised billing. This helped in centralised billing system development for Wal-Mart and for maintaining billing database too. But now with the business growing enormously Wal-Mart need smart technology to maintain the huge databases related to records and information (Angrish et al., 2005).

Technology has been traditionally helping in billing and storage systems at Wal-Mart for quite some time, but now the need is to apply technology in the areas of logistics and inventory management or SCM to reduce the expenses incurred by Wal-Mart (Angrish et al., 2005). The gigantic empire of Wal-Mart needs to keep track of not just men but also the materials all across the stores worldwide along with maintain the warehouses in different countries in the world, so bar-code was chosen as the effectual technology to help in SCM and logistics.

Currently Wal-Mart has been leading the industry with Radio Frequency Identification Tags (RFID) implementation amongst all the suppliers on all the products supplied to the company. Moreover a step ahead Wal-Mart has created a software system which links the Wal-Mart distribution centres with Procter & Gamble. This system monitor the lower levels of product supply in the store and then automatic alerts are sent to the supplier for the shipment. This SCM software is being implemented in every store of Wal-Mart. The real-time monitoring of the shelves through satellite links which scans the P&G products sends inventory messages and it makes SCM more efficient.

3.0 OVERVIEW OF SUPPLY CHAIN OPERATIONS REFERENCE SCOR MODEL

The leadership status which Wal-Mart enjoys in the retail industry is all because of its effectual SCM practices which it does in best manner. Wal-Mart also practices the most popular method for integrating the supply chains and measuring the adding partners performance by applying the Supply Chain Operations Reference (SCOR) Model which was developed in 1996 (Wisner, 2011). The whole SCOR Model can be seen from the figure attached in appendix 3.

3.1 SCOR Model Level 1

The Top Level of SCOR Model defines the content and the extent of supply chain and therefore the fundamental segmentation of supply chain is being done. Supply chain strategies are also formulated in this stage by specifying the four core processes or Meta processes which are (Overbeck, 2009) :

Figure 1: Bundles of Activities in Top Level of SCOR Model

3.2 SCOR Model Level2

The second level is the Configuration level which is being divided into 17 standard processes which represent the whole supply chain. The processes are divided into three types: (Overbeck, 2009)

Planning (Activities are defined which help in matching supply and demand)
Execution ( helps in transformation of activities which are categorised during planning)
Infrastructure ( involves activities which help in generating the needed resources for planning and execution)

The main aim of configuration level is to search for specific solutions for problems and organizations can do evaluation by matching configuration with supply chain. It is beneficial in representing the supply chain with just few resources.

3.3 SCOR Model Level3

The Process Element level is the one where the bundles of activities are further divided into smaller elements of process. The input-output relation for each process element is found. Benchmarks are set for every element so that any backlog when comapr4ed to best practices could be identified (Overbeck, 2009). Performance measures are determined for e.g. capital lockup, freight charges or cycle times etc.

3.4 SCOR Model Level 4

The last level is the Implementation Level where the process elements are further divided into smaller tasks which are again divided into activities. This level does not have general references, as it cannot be examined separately without consulting the other branches. That is why the Supply chain Council does not related Implementation level directly to the SCOR Model (Overbeck, 2009)

4.0 APPLICATIPON OF SCOR MODEL METHODOLOGY

The SCOR Model is based on very vital factors which are:

Process Modelling
Performance Measurement
Best Practices Implementation

It is on these three pillars the whole SCOR Model rests and according to the supply chain management approaches the Rough Cut Methods are the best for the development of inventory control policies and carrying several echelons together. That is why the Multi-echelon Theory is very successful in the logistics and supply management (Harrison and Ganeshan, 1995). The three steps to applying SCOR model for supply chain performance and improvement are described as follows:

4.1 Process Modelling

The Process Modelling Pillar is the pillar which helps in easing out the main building blocks of any business which are very complex like the business processes and their functionalities. The business model of SCOR contains five major business processes that are: Plan, Source, make, Deliver and Return. The process modelling standardises every process. It deals with important business related factor that is customer interaction and all the products and transactions related to them (Inc., 2007).

4.2 Performance Measurement

The performance Measurements Pillars act as the main feeders which deliver information after evaluation and give the feedback in the end. This pillar deals with lot of data which sib useful in assessing the business model adopted. The data is being disintegrated and various performance metrics are used to measure them at different levels in SCM. These metrics can only be used in the Performance Measurement Model (Inc., 2007).

4.3 Best Practice Implementation

The Best Practice Pillar is the important pillar as it helps in analysing the gaps after evaluating and understanding the performance of different processes. After finding the gaps in the performance the fillers are found which can bring 100% success and this is done by Best Practice Sharing. It has all the accumulated information regarding what works best with particular business and it is applicable to all the businesses and not just a particular business (Inc., 2007).

5.0 APPLICATION OF NEW TECHNOLOGIES

The Wal-Mart’s strategy has always been to catch-up the point-of-sale system which helps in identification of every system sold and carets the right receipt of sales for customer. This helps in storing sales information item-by-item which can be used in analysing the recording of inventory or sales. This helps in avoiding overstocking by Wal-Mart. The technical basis of point-of-sale is bar code scanner (Wal-Mart: attaining competitive advantage from information technology, 1999). The bar code scanner scans the bar code on every item during sale and the data is stored at the back end. This helps in knowing which item is selling well and which one needs reordering, thus better or lesser inventory cost. It also allows automatic reordering and coordination with the suppliers (Koselka, 1992).

5.2 Radio Frequency Identification (RFID) (Moorman, 2005)

The very useful RFID technology was implemented in Wal-Mart in June, 2003, so it brought more efficiency in supply chain using RFID because the core of success of the retail chain store is supply chain implementation. The RFID technology was being tapped by Wal-Mart to improve the efficiency and transparency of the supply chain system. The implementation of RFID has helped in finding that there are 10 items left on the shelf, their age, expiration date, lot number and warehouse origin too. In an article it is mentioned that implementation of RFID at Wal-Mart in the inventory has increased the sales as now the shelves are stocked in better manner. The out-of-stock merchandise at the stores have reduced by 16% because the RFID tagged items can be stocked three times faster than the non-RFID tagged items on the shelves (Angrish et al., 2005).

5.3 Radio Frequency Tags (RFT’s)

Wal-Mart has taken a step ahead by rolling out the sophisticated electronic Radio Frequency tags (RFT’s) in order to track every individual item sold at the store which will be helpful in controlling the inventory in better manner. These RFT’s or ‘smart tags’ can be read by hand-held scanner, thus the worker at the store will be able to find very quickly that amongst the pair of Wrangler jeans the medium size is missing without, this will ensure that the shelves are stocked all the time and the inventory will be more closely watched at the same time (Bustillo, 2010)

Wal-Mart started sharing their sales data with the suppliers using EDI, so that the supplier knows whets selling at the stores. Using the Point-of-sales information gathered at Wal-Mart store the supplier gets to know the sales trend and is able to recommend Wal-Mart that which orders should be placed. EDI helps in conducting the business in most effective and efficient manner as the critical business information is exchanged between two organizations like the purchase orders, shipping information, sales forecast information, item information, invoices etc. This way Wal-Mart can enhance its customer services, increase the productivity and lower the expenses at the same time (Wal-Mart’s Focus on EDI, 2005)

5.5 Electronic Commerce (e-commerce)

The world leader in retailing followed just the ‘brick and mortar’ models for its stores and supermarkets has now ventured into the e-commerce sector too by consolidating its e-commerce activities around the globe through its Global ecommerce division in 2010 . But by then many loyal customers of Wal-Mart shifted to the online retailer Amazon.com because of the big discounts offered by them at the comfort of their home (Welch, 2012). Now Wal-Mart has started offering ecommerce sales using dedicated online platforms across eh seven countries and the most significant platform is the walmart.com for the U.S. customers (Investing in global eCommerce to reach more customers, 2011).

Investment in the online business has been phenomenally increased by Wal-Mart to handle the competitors like Amazon.com and many more. It is also trying to develop a program which will allow its loyal customers to purchase without credit cards or bank accounts. They are developing an app for their new customers who can compare the price by scanning the bar code on the items and after comparing the prices they can make the best deal by buying it from Wal-Mart as they offer lowest prices. The tech team is also developing a program called ‘ Endless Aisle’ which would allow the comfort driven shoppers to immediately order any item on Walmart.com using Smartphone just in case the item is out of stock (Welch, 2012).

Vendor managed Inventory is a mutually beneficial relationship where both the organizations are able to control the supply and availability of goods in more accurate and smooth manner (Frahm, 2003). That is why in 1987 P&G and Wal-Mart started the Continuous Replenishment program (CRP). Using this program P&G monitors the inventory of Wal-Mart both physically as well as electronically through ERP implementation. This CRP between P&G and Wal-Mart is the best managed ERP program which is also called the Vendor –Managed Inventory Program. This ERP installation was a kind of win-win situation for both P&G as well as Wal-Mart because it helped Wal-Mart in finding the items which were getting sold very fast from the stores, and it can now monitor its stock levels regularly in the stores. P&G got benefitted as a result of better coordination it could lower the costs of the products and pass on those cost savings to Wal-Mart (Chandran, 2003).

6.0 CONCLUSIONS

Wal-Mart had a strong belief in its employees, customers and suppliers which made it the best retailer in the industry. All the cost saving opportunities were utilised by the company and the benefits were simultaneously passed onto the customers. But although it has implemented the best strategies for logistics and supply chain management there are still few areas which need to be handled by them they are:

There is no single Global RFID standard which the multinational like Wal-Mart will have to handle.
Technological problems with RFID tags exist like signal distortion. Tag transmission capabilities and reader speed and accuracy problems which create technical limitations.
Damaged and defective RFID tags have been supplied many a times.
Using RFID or RFT’s results in huge data accumulation and managing this huge database is another concern for the organisation.
Being late entrant in e-commerce has made it lose some share of customers and online competitors like Amazon.com, eBay .com etc have taken their market share.

7.0RECOMMENDATIONS

Wal-Mart can tackle the issue of multiple global RFOID standards by implementing varied RFID technologies and standards all across their organisations globally.
The limited information on the tags like just the serial number is listed. But this number can reveal a lot of information from the internet connected databases.
The best alternative which Wal-Mart can find for RFID tags are the RFT’s which are much better and much efficient too.
Wal-Mart has effectual Information Management System which handles all the huge data collection as well as technical problems also arising.
It has taken over the competitors by launching e-commerce website and developing a program where the 20% customers who do not have credit cards or bank accounts can also shop with Wal-Mart.
It has also developed apps which can be used on Smartphone’s by the customers to place the order and the latest program ‘Endless Aisle’ will allow them to even place order for out-of-stock items using this app of Wal-Mart.

8.0 REFERENCES

Bibliography.

Angrish, S., DeWitt, B., Patel, R., Chivukula, V.S., Shamsi, S. and Yellapragada, R. (2005) ‘Walmart Case STudy- RFID and Supply Chain Management’, November.

Bustillo, M. (2010) Wal-Mart Radio Tags to Track Clothing , 23 July, [Online], Available: http://online.wsj.com/article/SB10001424052748704421304575383213061198090.html [5 June 2012].

Chandran, M.P. (2003) ‘Wal-Mart’s SUpply Chain Management Practices’, ICMR Case Collection: ICFAI .

Frahm, S. (2003) Vendor Managed Inventory (VMI): Three Steps in Making It Work , 3 March, [Online], Available: http://scm.ncsu.edu/scm-articles/article/vendor-managed-inventory-vmi-three-steps-in-making-it-work [5 June 2012].

Handfield, R.B. and Nichols, E.L. (2002) Supply Chain Redesign:Transforming Design Chains into Integrated Value Systems , Upper Saddle River,NJ: Financial Times–Prentice-Hall.

Harrison, T.P. and Ganeshan, R. (1995) ‘An Introduction to Supply Chain Management ‘, Department of Management Science and Information Systems , MAy.

Inc., E. (2007) SCOR Model Process , 17 AUgust, [Online], Available: http://www.exforsys.com/tutorials/supply-chain/scor-model-process.html [5 June 2012].

Investing in global eCommerce to reach more customers (2011), [Online], Available: http://www.walmartstores.com/sites/annualreport/2011/ecommerce.aspx [5 June 2012].

Jespersen, B.D. and Skjott-Larsen, T. (2005) Supply Chain Management: In Theory and Practice , Scandinavia, Denmark: Copenhagen Business School Press.

Koselka, R. (1992) ‘Distribution revolution’, Forbes , 25 MAy, pp. 54-61.

Lawrence, P.R. and Lorsch, J.W. (1967) Organization and Environment:Managing Differentiation and Integration , Cambridge, MA: Harvard University Press.

Lee, H.L. (2004) ‘The triple-a supply chain’, Harvard Business review , vol. 83, October, pp. 102-112.

List of Walmart Brands (2012), 4 June, [Online], Available: http://en.wikipedia.org/wiki/List_of_Walmart_brands [5 June 2012].

Moorman, E. (2005) ‘Role of IT in Supply Chain Mgmt. Operations’, Managerial COmmunication and Ethics , March.

Overbeck, S. (2009) Supply Chain Management – a Critical Analysis , GRIN Verlag.

Skjott-Larsen, T. (2007) Managing the Global Supply Chain , Copenhagen: Copenhagen Business School Press DK.

Skjott-Larsen, T., SChary, P.B., Mikkola, J.H. and Kotzab, H. (2007) Managing the Global Supply Chain , 3 rd edition, Liber, Sweden: Copenhagen Business School Press.

WALMART (2012), [Online], Available: http://www.walmart.com/cp/Products-Merchandise/538361 [5 June 2012].

Wal-Mart: attaining competitive advantage from information technology (1999), [Online], Available: http://www.prenhall.com/divisions/bp/app/alter/student/useful/ch1walmart.html [5 June 2012].

Wal-Mart’s Focus on EDI (2005), [Online], Available: http://www.wal-mart-edi.com/focus_on_edi.htm [5 June 2012].

Welch, d. (2012) E-COMMERCE:Walmart expands its Web presence to keep up with Amazon.com , 1 April, [Online], Available: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/03/31/BU181NSQ07.DTL [5 June 2012].

Wiederman, A.J. (2012) The Consumer Trends That Are Slowly Killing Walmart , 26 March, [Online], Available: http://www.dailyfinance.com/2012/03/26/the-consumer-trends-that-are-slowly-killing-walmart/ [5 June 2012].

Wisner, J.D. (2011) Principles of Supply Chain Management: A Balanced Approach , Cengage Learning.

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About admin

Manager II, Process Engineer - Supply Chain

Location BENTONVILLE, AR
Career Area Project and Program Management - PMO
Job Function Process Improvement
Employment Type Regular/Permanent
Position Type Salary
Requisition WD1893133

What you'll do at

Position Summary...

What you'll do...

Leads Process Improvement tools and methods (for example, 5S, root cause analysis, six sigma, time and motion studies) to eliminate Quality losses and deviations in an area within a Distribution Center according to Network Process Structure using Walmart Performance System (WPS) programs.

Delivers expected functional area results through Key Performance Indicator (KPI) analysis, loss elimination, and by creating standard work to reduce process variation. Assists with the review and response of Quality focused process improvement projects owned by area managers.

Compiles and submits deviations to existing One Best Way playbooks and provides input to Divisional Focused Improvement Teams on project ideation and replication opportunities.

Assists with the tactical deployment of the Quality Excellence WPS program methodology. Manages project execution of top Quality losses in the functional area and assists in building the capability of other area managers and associates.

Assists with the creation of area Quality loss profile analysis and performance metrics. Develops gap analysis to support WPS integration.

Supports Department Managers with WPS programs, projects, associate engagement and KPI improvements within process area.

Leads Quality-related savings projects within area of responsibility by taking loss out of the process.

Promotes and supports company policies, initiatives, procedures, mission, values, and standards of ethics and integrity. Demonstrates up-to-date expertise and applies this to the development, execution, and improvement of action plans by providing expert advice and guidance to others in the application of information and best practices; supporting and aligning efforts to meet customer and business needs; and building commitment for perspectives and rationales. Provides and supports the implementation of business solutions by building relationships and partnerships with key stakeholders; identifying business needs; determining and carrying out necessary processes and practices; monitoring progress and results; recognizing and capitalizing on improvement opportunities; and adapting to competing demands, organizational changes, and new responsibilities.

Coordinates, completes, and oversees job-related activities and assignments by developing and maintaining relationships with key stakeholders; supporting plans and initiatives to meet customer and business needs; identifying and communicating goals and objectives; building accountability for and measuring progress in achieving results; identifying and addressing improvement opportunities; and demonstrating adaptability and promoting continuous learning.

Provides supervision and development opportunities for associates by hiring and training; mentoring; assigning duties; providing recognition; and ensuring diversity awareness.

Ensures compliance with company policies and procedures and supports company mission, values, and standards of ethics and integrity by implementing related action plans; utilizing and supporting the Open Door Policy; and providing direction and guidance on applying these in executing business processes and practices.

For information about PTO, see https://one.walmart.com/notices .

For information about benefits and eligibility, see One.Walmart .

Minimum Qualifications...

Outlined below are the required minimum qualifications for this position. If none are listed, there are no minimum qualifications.

Preferred Qualifications...

Outlined below are the optional preferred qualifications for this position. If none are listed, there are no preferred qualifications.

Primary Location...

About walmart.

"I love that at Walmart, each associate has the opportunity and autonomy to create their own career path and grow."

Hello, NW Arkansas

With over 200 miles of trails, an emerging locally-sourced food scene, the world-renowned Crystal Bridges Museum—NWA has something for everyone.

Crystal Bridges Museum

Celebrate the American spirit in a setting that unites the beauty of art and the power of nature.

Walton Arts Center

Arkansas' premiere center for visual arts and entertainment.

The Amazeum

An interactive children's museum that's fun for the whole family.

Botanical Gardens

42 acres of premiere public garden space.

Devil's Den State Park

Located on 2,500 acres, Devil's Den State Park is the perfect place to explore Arkansas' natural beauty.

Fayetteville Square

The best of shopping and restaurants, right in the heart of Fayetteville.

All the benefits you need for you and your family

Multiple health plan options, including vision & dental plans for you & dependents
Financial benefits including 401(k), stock purchase plans, life insurance and more
Associate discounts in-store and online
Education assistance for Associate and dependents
Parental Leave
Pay during military service
Paid Time off - to include vacation, sick, parental
Short-term and long-term disability for when you can't work because of injury, illness, or childbirth

Eligibility requirements apply to some benefits and may depend on your job classification and length of employment. Benefits are subject to change and may be subject to specific plan or program terms. For information about benefits and eligibility, see One.Walmart.com/Benefits .

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On average, how long does it take to fill out an application.

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Walmart China - Supply Chain Transformation

By: P. Fraser Johnson

In late September 2015, the senior vice-president of supply chain management at Walmart China was preparing for a meeting in Bentonville, Arkansas, where she was expected to make a presentation…

Length: 9 page(s)
Publication Date: Nov 25, 2015
Discipline: Operations Management
Product #: W15534-PDF-ENG

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In late September 2015, the senior vice-president of supply chain management at Walmart China was preparing for a meeting in Bentonville, Arkansas, where she was expected to make a presentation detailing plans for Walmart China's network of distribution centres. The investment in infrastructure would be the next major step in the organization's supply chain transformation. The case provides an opportunity to explore issues related to supply chain strategy in the context of an evolving economic environment in China. Students are expected to assess pending investments in supply chain infrastructure, including evaluation of the quantitative and qualitative aspects related to two competing distribution centre models.

Learning Objectives

This case can be used in an elective in supply chain management or logistics, in either an undergraduate or MBA program. It provides an opportunity to examine the financial and strategic trade-offs of two distribution centre models as part of the evolution of Walmart China's supply chain strategy. The instructor can delve into issues related to supply chain strategy and the role of distribution centres in global supply chains. The backdrop of a supply chain transformation at Walmart China provides an especially interesting context.

Nov 25, 2015 (Revised: Nov 26, 2015)

Discipline:

Operations Management

Geographies:

Industries:

Retail and consumer goods

Ivey Publishing

W15534-PDF-ENG

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What's more, Walmart spent $14 billion in 2021 on supply chain automation. This begins with automated warehouse management and control systems, which are software, and automated picking, sorting and putting systems, which are hardware. The software handles inventory control of the bewilderingly large assortment of Walmart's various online ...
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This case focuses on the supply chain strategy of Walmart. Set in 2019, it provides a detailed description of the company's supply chain network and capabilities. Data in the case allows students to compare Walmart's source of competitiveness with those of other retailers-both online including Amazon.com and traditional brick-and-mortar retailers, such as Target-to develop insights into the ...
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Title: Walmart Operations: A Comprehensive Analysis of Supply Chain Management, Technological Integration, and Customer Experience Introduction: Walmart, a global retail giant founded in 1962, has grown to become one of the world's largest and most successful retailers. This assignment explores the intricate details of Walmart's operations, focusing on its supply chain management ...
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Walmart's approach means frequent, informal cooperation among stores, distribution centers and suppliers and less centralized control. Furthermore, the company's supply chain, by tracking customer purchases and demand, allows consumers to effectively pull merchandise to stores rather than having the company push goods onto shelves.
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Supply Chain Flexibility: Collaboration fosters agility and adaptability in the supply chain. When Walmart and its suppliers work together closely, they can quickly adjust to market changes, supply disruptions, or new opportunities. Cost Reduction: Improved supplier collaboration can lead to cost-saving opportunities.
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In 2006 Wal-Mart, the second largest firm in the world by sales, was looking to improve its already efficient supply chain. The company's supply chain was closely integrated with its retail and information systems strategies and has been developed incrementally over the past 40 years. However, rivals were copying every aspect, from the way Wal-Mart cross-docks product in warehouses to Wal-Mart ...
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Walmart Supply Chain Assignment - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Walmart has implemented extensive initiatives to develop a sustainable and environmentally friendly supply chain and business operations. It pioneered efficient supply chain management strategies in the 1980s such as working directly with manufacturers and ...
Walmart Supply Chain: What Makes It (Still) So Successful
These investments have contributed to the successful supply chain that we see today. Between 2019 and 2020, 72% of Walmart's strategic capital expenditures were attributed to supply chain transformation, which includes supply chain technologies, infrastructure, and ecommerce. During this period, the company spent more than $11 billion.
PDF tab 7a Wal-Mart study assignment
Study Assignment Half Century of Supply Chain Management at Wal-Mart In preparation for the case, please consider these questions: 1. As James Neuhausen, what is your analysis of Wal-Mart's supply chain? Are the company's supply chain capabilities still a source of competitive advantage? Why or why not? 2. How is Wal-Mart doing?
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Walmart's supply chain management is considered to handle as well as optimize the process of supply chain which includes the goods and services. It is considered as important in the commerce. The effective strategies are required to be followed for the supply chain management. The report includes the analysis of Walmart's supply chain ...
Half a Century of Supply Chain Management at Wal-Mart
A stock analyst is preparing a recommendation on what his firm, a large U.S. investment house, should do with its stake in Wal-Mart Stores, Inc. Wal-Mart, the world's largest retailer, was trying to recover from a series of missteps that had seen competitors such as Dollar Stores and Amazon.com close the performance gap. Competitors had copied many aspects of Wal-Mart's distribution system ...
Walmart supply chain
Group B Assignment 2; Comp3750 03 - Assignment work. Riders guide; ... WALMART: SUPPLY CHAIN MANAGEMENT 1. Ken Mark wrote this case under the supervision of Professor P. Fraser Johnson solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation ...
Case Study
To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email [email protected]. Website: www.icmrindia.org fWal-Mart's Supply Chain Management Practices BACKGROUND NOTE Walton was born in 1918 at Kingfisher, Oklahoma, US.
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ASSIGNMENT 2 SUPPLY CHAIN MANAGEMENT - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free.
Operations Management Assignment: Supply Chain Management Of WalMart
· Walmart's supply chain management is trying to contribute its best as the company is working directly with the manufactures to reduce costs and to make the supply chain more effective. · Amazon's one day or two-day delivery has become possible due to its logistic system.
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In the late 1980s, Walmart developed their own Electronic Data Interchange (EDI)-based supply-chain management system that required its large suppliers to use Walmart's proprietary EDI network to respond to and fill orders from Walmart purchasing managers. In 1991, Walmart expanded the capabilities of its EDI-based network by introducing what ...
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We're also proud of our culture of growth and belonging. Approximately 75% of our U.S. salaried store, club and supply chain managers started their careers as hourly associates. $25.50. Average wage for U.S. Supply Chain programs offered through Live 6. Better U, with. hourly supply chain associates. hundreds of graduates.
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How Walmart is Navigating the Supply Chain To Deliver This Holiday Season. By Joe Metzger, Executive Vice President, Supply Chain Operations, Walmart U.S. We have all seen and heard a lot in recent months about supply chain issues across the retail industry. With so many news stories about port delays, increased consumer demand and holiday ...
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20277585 Supply Chain Management of Amul and Wal Mart - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. The world's largest public corporation by revenue, according to the 2008 Fortune Global 500. The company procured goods directly from manufacturers bypassing all intermediaries. The supply chain ensured a steady supply and consistent supply of ...
Global Supply Chain Management of Walmart Assignment
The paper "Walmart's Success in supply chain management" is a perfect example of a case study on management....Juggernaut Walmart reported a gross profit of $486 billion at the end of the 2016 fiscal year due to the use of supply chain management which has forged over very many decades.... The paper "Walmart's Success in supply chain management" is a perfect example of a case study on ...
Wal-Mart.docx
Yes, off course Wal-Mart has a competitive strategy, Wal-Mart's supply chain management strategy has provided the company with several sustainable competitive advantages including lower product costs Reduced inventory carrying costs improved in-store variety and selection, and highly competitive pricing for the consumer.
SUPPLY CHAIN MANAGEMENT
The Supply Chain Management system of Wal-Mart is efficient as it reduces the lead time which helps in faster inventory turnover. Using the SCOR Model which has four levels that is the Top Level, the Configuration Level, The Process Level and the Implementation Level Wal-Mart has made its supply chain management very effectual.
Senior Manager, Supply Chain Management
Requisition R-1893175. Position Summary... What you'll do... We are seeking a Senior Manager, Supply Chain Management to join our Alaska/Hawaii Merchandising Operations team at Walmart. This role plays a crucial part in managing end-to-end supply chain processes, overseeing relationships with external partners, and driving field-level direction.
Manager II, Process Engineer
Location BENTONVILLE, AR. Career Area Project and Program Management - PMO. Job Function Process Improvement. Employment Type Regular/Permanent. Position Type Salary. Requisition R-1893133. Position Summary... What you'll do... Leads Process Improvement tools and methods (for example, 5S, root cause analysis, six sigma, time and motion studies ...
Walmart China
In late September 2015, the senior vice-president of supply chain management at Walmart China was preparing for a meeting in Bentonville, Arkansas, where she was expected to make a presentation detailing plans for Walmart China's network of distribution centres. The investment in infrastructure would be the next major step in the organization's supply chain transformation. The case provides an ...
6 Questions With … Devadas Pattathil
Brian Straight · May 28, 2024 ·. Devadas Pattathil is a co-founder and current head of product at Nextuple. He is a product management & technology leader with expertise spanning retail and omnichannel e-commerce, online grocery, and supply chain domains. Prior to Nextuple, Devadas spent eight years at Walmart where he was responsible for ...
Gartner Announces 20th Annual Rankings of the Global Supply Chain Top 25
Gartner, Inc. has announced the results from its 20th annual Global Supply Chain Top 25, which recognizes leading supply chain organizations and identifies the underlying trends that drove their performance. "The supply chain organizations in this year's Top 25 were notable for better protecting growth rates in a challenging operating environment, while at the same time delivering more ...
American shoppers are tired. These companies are benefiting
Americans are worn down by high inflation and interest rates. Companies that offer bargains and staples are reaping the rewards. Just ask Ross Stores: America's largest off-price retailer ...

Walmart Supply Chain: Building a Successful Integrated Supply Chain for Sustainable Competitive Advantage

Introduction

Walmart’s Supply Chain: Integrated Supply Chain Success

Role of Data Analysis through Barcode Scanning and Point-of-Sale Systems

Efficient Supply Chain Practices: Automated Distribution Centers and Computerized Inventory Systems

Utilizing Walmart’s Own Trucking System and Cross-Docking Logistics

Information Technologies Driving Efficiency

Collaborative Planning, Forecasting, and Replenishment (CPFR)

Vendor-Managed Inventory (VMI) and Its Benefits

Leveraging RFID Technology for Real-Time Inventory Targeting

Achieving Competitive Advantage through Strategy

Implementing the “Everyday Low Costs” (EDLC) Policy through Direct Procurement

Utilizing Information Systems for Better Inventory Management

Challenges and Opportunities

Challenges in Obtaining Suppliers’ Cooperation

Opportunities for Enhanced Supplier Cooperation and Collaboration

Importance of Collaboration to Enhance Supply Chain Efficiency

The Incentives Alignment Issue

1. Balancing Profit Margins Among Different Supply Chain Parties:

2. Misalignment of Interests Between Walmart and Suppliers:

3. Conflict Between Inventory Growth and Sales Growth:

4. The Need for a New Triple-A Supply Chain:

The Triple-A Supply Chain Approach

The Three Qualities of an Ideal Supply Chain

Adaptability to Handle Changes in Demand and Supply:

Alignment of Interests among All Participating Parties:

References:

Download Indirect Procurement Assessment

Walmart Supply Chain: What Makes It (Still) So Successful

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What makes Walmart’s supply chain so successful?

Early investment in supply chain optimization

Fine-tuning the supply chain management system

Developing strong relationships with vendors early on

Outsourcing inventory control with vendor managed inventory (VMI)

Capitalizing on the power of technology

Two-day shipping

Warehousing

Inventory management

Walmart integration

Does Walmart have its own supply chain?

What is Walmart’s supply chain strategy?

What are the advantages of selling on Walmart Marketplace?

Your supply chain 'easy' button

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