Walmart Case Study
Introduction: (Major Facts)
Ever since Wal-Mart started it has taking off not only nationally but internationally, especially over the past ten years. Wal-Mart has become the world’s largest and probably the most powerful retailer to this day, having the highest sales per square foot. The major keys to Wal-Mart’s success is due to their inventory turnover, operating profits, providing discounted prices to their customers, and of course their supply chain. Through all of those, Wal-Mart says that it focuses on change, technology, and effective management to lower cost all across the board. Wal-Mart’s incredible supply chain, as shown in the case with its seafood, but with all of its products is where most of their ability to lower product costs and become highly competitive, pretty much controlling in the market. Braking down their supply chain, primary areas that make such an efficient process is their integration with suppliers, manufacturing, warehousing, and distribution to stores. Having four key components, vendor partnerships, cross docking and distribution management, technology, and integration. Throughout the case we see all of these areas come into play, in the end showing how efficient the process really is, only to have a margin of $0.05 per pound of fish but still making money.
Problem Statement: (Major Problem)
• The company’s volume of seafood business was growing at roughly 25 percent per year.
• Wal-Mart’s goal was to get its suppliers to adopt the MSC’s certification program so that the company could transition to selling 100 percent MSC certified wild-caught seafood by the end of 2011.
• Compliance to ensure that products were managed sustainably from “boat to plate.”
• The direct cost of MSC certification ranged from $50,000 to 500,000 and was paid for by boat operators and processing plants.
• On average, certification took one to two years to complete.
• Manish Kumar, CEO of the Fishin’ Company, Wal-Mart’s majority supplier of
Ever since Wal-Mart started it has taking off not only nationally but internationally, especially over the past ten years. Wal-Mart has become the world’s largest and probably the most powerful retailer to this day, having the highest sales per square foot. The major keys to Wal-Mart’s success is due to their inventory turnover, operating profits, providing discounted prices to their customers, and of course their supply chain. Through all of those, Wal-Mart says that it focuses on change, technology, and effective management to lower cost all across the board. Wal-Mart’s incredible supply chain, as shown in the case with its seafood, but with all of its products is where most of their ability to lower product costs and become highly competitive, pretty much controlling in the market. Braking down their supply chain, primary areas that make such an efficient process is their integration with suppliers, manufacturing, warehousing, and distribution to stores. Having four key components, vendor partnerships, cross docking and distribution management, technology, and integration. Throughout the case we see all of these areas come into play, in the end showing how efficient the process really is, only to have a margin of $0.05 per pound of fish but still making money.
Problem Statement: (Major Problem)
• The company’s volume of seafood business was growing at roughly 25 percent per year.
• Wal-Mart’s goal was to get its suppliers to adopt the MSC’s certification program so that the company could transition to selling 100 percent MSC certified wild-caught seafood by the end of 2011.
• Compliance to ensure that products were managed sustainably from “boat to plate.”
• The direct cost of MSC certification ranged from $50,000 to 500,000 and was paid for by boat operators and processing plants.
• On average, certification took one to two years to complete.
• Manish Kumar, CEO of the Fishin’ Company, Wal-Mart’s majority supplier of