Wal-Mart Supply Chain.

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Wal-Mart Supply Chain.

By | September 2010
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Wal-Mart’s supply chain Management practices
Logistics I
Denise Melendez 1163688
Carlos Nava 1162897
30/06/10

Case solution:

1- Wal-Mart has been able to achieve respectable leadership in the retail industry because of its focus on supply management. Discuss in detail the distribution and logistic system adopted by Wal-Mart adopted by Wal-Mart.

We have listed the key points of the distribution system and logistics system analysis

Logistic management:
•Cross- Docking system.
•Distribution centers were serviced by own Wal-Mart’s trucks. •Drivers had to report their hours of service every day.
•Hiring only experienced drivers for trucks.
Distribution system
•Barcode Technology.
•Establish long –term relationships
•Hand-Held computer system.
•Procured goods directly from manufacturers.
2.-The use of innovative information technology tools had benefited Wal-Mart’s supply management. In the light of the above statement, briefly explain how IT benefited Wal-Mart’s logistics and inventory management.

About logistics benefits:

Various technologies made supply chain more convenient regardless the area.
They Made distribution process more efficient in terms of money and time (cross docking). With this they finished goods directly supplied to customers from manufacturing plant which meant happy customers and reduced storage of finished goods.

About inventory benefits:
Used his own satellite communication system, this allowed national expansion, while communications and information’s flow was autonomous. Wal-Mart also automated Reordering System which allows them to collaborate with other companies and to control the huge supply chain.

Nevertheless, they used new technology like algorithm system to forecast exact...
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