Preview

Wal-Mart Supply Chain.

Satisfactory Essays
Open Document
Open Document
508 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Wal-Mart Supply Chain.
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

You May Also Find These Documents Helpful

  • Better Essays

    Technology plays a large role in the performance of Wal-Mart Corporation. The company’s use of technology has contributed to their overwhelming success. The use of computer systems that are able to support the massive inventory, sales, and personnel is a key component of the corporation. Without the proper technology, the company would never have been successful.…

    • 1117 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Supply Chain

    • 858 Words
    • 4 Pages

    Metrovox is a German electronics manufacturer that designs, develops and manufactures a range of products for the entertainment and home electronics sector. Management has recently focused on two related products, Bugabyte and Terabyte Lite. The Bugabyte is a video and audio player with a flash drive. The company has invested heavily in the research and development of this product, which is a small hand-held unit about the size of a credit card. It is about 50 percent thinner than their competitor’s offerings. The Terabyte Lite is a flash drive and mp3 player. Metrovox sells this product to a distributor in North America and to a major European retailer.…

    • 858 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Gm586 Unit 4

    • 1359 Words
    • 6 Pages

    Wal-Mart has three competencies that has helped to build it to become the retail giant it is: excellence in how it operates, customer satisfaction, and supplier product relations. Wal-Mart’s CEO understands to continue having a successful retail business it is important to “coordinate a complex information management and distribution network and to efficiently manage supplier relationships” (Bender, Howell, Lavin, and Torgerson, 2001, p.…

    • 1359 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Bcor 2500 - Exercise One

    • 660 Words
    • 3 Pages

    Business Tactics: Wal-Mart believed that revenues could be significantly increased if the company could easily track the movement of goods and stock levels across all distribution centers. With this information Wal-Mart could hire workers to design algorithms to accurately forecast the quantities of each item to be delivered, based on inventories in the store, thereby minimizing stock-outs and increasing sales. Knowing where their products were at all times make it much harder for employees to steal. The company also recognized that labor costs could be significantly reduced by providing employees with easy access to information concerning inventory in stores, deliveries and backup merchandise in stock. This would increase the efficiency of individual employees by making…

    • 660 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Wal-Mart has grown from just a retail store to a grocery store and also operates a warehouse discount store (Sam’s Club). Wal-Mart’s success not only stems from Sam Walton’s good intentions but also from their technology standpoint. Wal-Mart has an extensive information technology capability that rivals the Pentagon. Wal-Mart’s logistics is impressive to say the least with over 40 regional distributions centers…

    • 1301 Words
    • 6 Pages
    Good Essays
  • Good Essays

    The retail giant Wal-Mart is based in Bentonville, Arkansas and it was founded by the late Sam Walton (1918 – 1992). In the mid 60s Sam Walton was looking at technology to use IBM mainframes to store inventory data (Wallgum, p.1, 2010). “Wal-Mart Stores Inc. built an inventory and supply chain management system that changed the face of business” (Helen, p. 38, 2002). Beginning his career in the mid 40s Sam Walton knew the importance of meeting customer’s needs and this ideology remains today. According to Berman, “Wal-Mart Senior Vice President of International Supply Chain Gary Maxwell said that understanding the customer needs is the key to designing a fluid global operation” (Berman, p. 38, 2009). In 1975, to maintain inventory control in the warehouse and distribution centers, Wal-Mart leased an IBM 370/135 system and with the use of accounting software and was able to prepare income statements for each retail location (Wallgum, p. 1, 2010).…

    • 580 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Supply Chain

    • 358 Words
    • 2 Pages

    Choose an organization delivering goods and/or services globally. Provide a background of the organization and fully describe six components of the organization's supply chain. Examine the potential problems related to each of the components described and explain the approaches of the organization for solving the problems.…

    • 358 Words
    • 2 Pages
    Good Essays
  • Good Essays

    So, how did Walmart get to be as successful as it is today? Walmart is the epitome of one-stop-shopping, with a cornucopia of differing products at the lowest prices. They make their money from high volume and very fast turnover. Walmart is also an efficiency machine when it comes to logistics. They use a system that keeps track of every item in their store and as soon as a number of items are sold, if it is noted to, it will automatically send a reorder to the distributer. This speeds up delivery and the…

    • 697 Words
    • 3 Pages
    Good Essays
  • Good Essays

    • Inbound Logistics: One of the most important reasons for Wal-Mart’s success has been its inbound logistics. Wal-Mart pioneered the development of a hub-and-spoke distribution system. Its central distribution warehouses are strategically located to serve clusters of Wal-Mart stores which lead to minimized shipping times.…

    • 862 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Walmart Case Study

    • 1055 Words
    • 5 Pages

    Our case presentation is based on Wal-Mart.. We are going to talk about Wal-Mart’s strategies, business model and how it influences the society.…

    • 1055 Words
    • 5 Pages
    Good Essays
  • Good Essays

    A Case Study of Wal-Mart

    • 921 Words
    • 4 Pages

    Domination of Wal-Mart in retailing industry is itself a story of a successful business model. There are several factors and some of them is still a mystery for the opponent to understand about the existing weaknesses. Wal-Mart has ultimate strategy in its formulation which made Wal-Mart to dominate in the retailing market. In US as well as in globe Wal-Mart presence and its growth by expansion can’t be avoided which created widespread recognition and awesome customer satisfaction in customer relation. It is proved by the several case studies that Wal-Mart basically endeavors on the three very generic strategies which are consisting Differentiation Strategy, cost leadership and Focus Strategy. Managers are putting their hard efforts to make Wal-Mart ultimate and unique organization which ultimately drives customers to come Wal-Mart and buy products and I believe this is the one key factor for the success of Wal-Mart. Low Price Strategy which operates on daily basis builds trust in customers. Internal resource and inventory system are superb which are based on latest RBV (Resource Based View) which explains competitive heterogeneity that is certainly based on the competitor’s resources and capabilities. Their main strategy lies in selling goods to the customers in very low price means cutting prices very low as much as possible while company’s profit increases by selling bulk of sales. New Technologies are implemented in Wal-Mart internally (Inventory and resource management) as well as externally which you can see while billing and product advertisement. Expansion of Wal-Mart in US as well as whole globe is also one of the strategic goal for profits and success. All over the world total 4000…

    • 921 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In today's world management must consider a wide variety of factors in order to establish an effective management plan. Wal-Mart Stores, Inc. is the world's largest company and number one retailer, with this success a company this large needs to not only to look internally for solutions to their management objectives, they must also look outside of their business for additional resources. With the increase of technology and the easy access to virtually any information, Wal-Mart Stores, Inc. must be prepared to react to the multitude of demands made by consumers and suppliers. The rapid change of the retail industry from brick and mortar stores to Internet purchases Wal-Mart Stores, Inc. has been able to stay attractive to the buying public. Wal-Mart Stores, Inc. has accomplished this through a highly sophisticated inventory tracking system that enables the stores, including the Internet, to have in stock exactly what the consumers are looking for. According to Hoover's Online Wal-Mart Stores, Inc has expanded to about 4,700 stores including about 1,500 discount stores, 1,650 combination discount and grocery stores (Wal-Mart Supercenters in the US and ASDA in the UK) and 532 membership-only warehouse stores (Sam's Club) (2003). With the introduction of a foreign market their management plan must encompass the rules and regulations of doing business in a foreign country. With the invention of their tracking and identification system, called Radio Frequency Identification (RFID), Wal-Mart Stores, Inc. has exerted control over their entire inventory and enables the workers to identify and locate merchandise more readily for the customers. E-Commerce has increased the ease of purchasing for consumers; Wal-Mart Stores, Inc. has a web site that allows for the ease and convenience of purchasing almost every item in the store over the Internet. Wal-Mart Stores, Inc. has been very innovative in…

    • 1877 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Research opens many windows into the thinking of various types of business throughout the world. In researching Wal-Mart and analyzing this case it has opened the window to the ability of a small town business man of Bentonville, Arkansas. This man is the legendary Sam Walton. Who, in 1962, created his “Wal-Mart Discount City”, however before coming to the opportunity of Wal-Mart; Sam Walton owned a number of Ben Franklin Store Chains. In having this prior experience of owning smaller variety stores and dealing with its franchised supply chain, this allowed Mr. Walton to learn various business concepts and also was able to selectively purchase merchandise in bulk from new suppliers and then transport these goods to his stores directly. This is when the realization and opportunity of “discount retailing” first evolved and was set to become a major influence in future business. This is, in my opinion, the spark of the “Everyday Low Price” (EDLP) strategy developed for the Wal-Mart chain. A quote which best shows and illustrates this evolved prediction talks about the…

    • 4508 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    operations analysis

    • 1463 Words
    • 5 Pages

    This paper discusses the supply chain operations at Wal-Mart, providing a detailed analysis of problems the organization faces as it works to improve its supply chain management department. In addition to analysis of problems, a representation of the discovered problems is made and recommendations given.…

    • 1463 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Management and Sam Walton

    • 577 Words
    • 3 Pages

    In 1960s, Sam Walton (founder of Wal-Mart) achieve higher sales volumes by keeping sales price lower than his competitors by reducing his profit margin. He relied on them to give customers the great shopping experience that would keep them coming back. “If we work together,” he said, “we’ll lower the cost of living for everyone… we’ll give the world on opportunity to see what it’s like to save and have a better life.” In order to gain the highest profit in retail business, Wal-Mart’s leader had used innovation.…

    • 577 Words
    • 3 Pages
    Good Essays