Wal-Mart, a leading corporation (Fortune500), with profits more than $16 billion, has to support a multifaceted Supply Chain. Its Supply Chain Management (SCM) can be split into several components: Production, supply, Inventory, transportation, location and information.
Production - focuses on the strategic decisions of Wal-Mart regarding the manufacturing of products (Wal-Mart, 2012). OUTSOURCING?
Supply - Then is the major component for Wal-Mart, the supply. Wal-Mart at this stage obtains required inputs for production of its products and services. Wal-Mart focuses on the quality of product, flexibility in prices, developing velocity to determine supply of inputs that helps to maintain its low cost strategy continue (Wal-Mart 2012).
Inventory - is one more significant component which has to do with the competitiveness of Wal-Mart within the industry. For effective management of inventory, Wal-Mart focuses on day to day stock based on Radio Frequency Identification (RFID) technology. It is a technology that is basically used to track remaining goods within organization (Wal-Mart 2012).
Transportation - is intimately related to inventory decisions and also with the customer requirements (Bolstorff & Rosenbaum 2007). Wal-Mart uses stores to offer its products to its customers as well as delivery services using its own trucks (Wal-Mart 2012).Wal- Mart is trying to coordinate the transportation in order to have the lowest possible distance travelled.
Location - is also an important part of the business as it determines success of the business (Lambert 2008). Wal-Mart emphasizes on customer demands and determination of customers’ satisfaction in determining places for its stores. Identification of customer demand helps to determine the locations for stores and production facilities in order to be close to the consumers (Wal-Mart 2012).
References: From “Wal-Mart Case Study – RFID and Supply Chain Management” (p. 8) by Sangita, A. Vnkata, C. Brendon, D. Raxesh, P. Shazeb, S. Ramachandra, Y. (2005). U.S. Department of Defence. (2005). Radio Frequency Identification. Retrieved March 9, 2012 from https://kb.defense.gov/app/answers/detail/a_id/483/~/radio-frequency-identification-%28rfid%29s Murray, M. (2012). Cross Docking. Retrieved March 9, 2012 from http://logistics.about.com/od/supplychainglossary/g/Cross_Dock.html Sangita, A. Vnkata, C. Brendon, D. Raxesh, P. Shazeb, S. Ramachandra, Y. (2005). Wal-Mart Case Study – RFID and Supply Chain Management. Retrieved March 9, 2012 from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cts=1331593269858&ved=0CDIQFjAC&url=http%3A%2F%2Fmason.gmu.edu%2F~ryellapr%2Fwalmart.doc&ei=MoBeT5nPI-rB0QXEj-H_Bg&usg=AFQjCNHaiu5o74EjcVQOUTNIqrKFtn81Iw&sig2=2ceYUuivhc2vANZGQUBIWw