Procurement Strategies

Topics: Procurement, Supply chain management, Wal-Mart Pages: 3 (947 words) Published: May 29, 2011
Procurement Strategies Review
Competition is fierce in today’s world and a business must work smarter versus harder. Many big name chain stores have achieved success but none like that of Wal-Mart. The following is a review of the Wal-Mart customer and his or her expectations of its procurement process. An additional review of how these expectations affect Wal-Mart’s strategies, policies, and procedures at both the domestic and global level is also included. Customers

“An internal customer is anyone you count on or rely upon to complete a task or a function or to provide you with information so that you can get your job done… and anyone who counts on you to complete a task or function or to provide them with information so that they can get their job done” (Earl, 2004, para. 3). In Wal-Mart’s distribution centers, the individual stores are the internal customer. Each department within a store counts on store management to make certain orders are places and received timely. Store management counts on the employees to keep the individual department in order for the external customers. External

Wal-Mart’s external customers are almost exclusively the public. Through Wal-Mart’s three operating branches, Wal-Mart stores, Sam’s Club, and Wal-Mart International, the organization focuses on supplying its customers with merchandise ranging from produce to tires at a bargain price. This is the expectation of the customer, to receive the best product at the lowest possible price. Wal-Mart is capable of procuring material at reduced costs and passing these savings to its customers. Wal-Mart’s unique ability to force concessions from suppliers further reduces costs and delivers the demands of their customers, more products for less cost. Procurement expectations

Wal-Mart’s procurement expectations from suppliers are some of the strictest among retailers. The Global Procurement division was created to manage Wal-Mart’s global suppliers by creating supplier...
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