Supply Chain Management of Walmart - Assignment Example

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These factors raised issues for the company about Supply Chain Management (SCM) which further caused a substantial decrease in stakeholders’ confidence. In this regard, the company will be provided with the opportunity of devising as well as implementing better policies and standards to improve the business operations of its suppliers in a global context (Wal-Mart Stores, Inc., “Ethical Sourcing”).

To mitigate the above-described SCM-related issue, Walmart decided to undergo a massive restructuring process. In this context, the suppliers of the company were required to be ISO 9000 certified to provide goods to the company adhering to the specified quality standards which would not only assure an effective holistic approach in its SCM practices but shall also prove beneficial in revitalizing stakeholders’ confidence. Moreover, with the ISO certification of suppliers, the company is also expected to vitalize its ability to assure that the goods procured are by the specified quality standards. This factor added to the opportunity for the company to conduct its business operations in a transparent, holistic, and ethical manner (Marucheck, Greis, Mena, and Cai, “Product Safety and Security in the Global Supply Chain: Issues, Challenges, and Research Opportunities”).

The restructuring of the company has been perceived to be assisting Walmart in acquiring suppliers who are ISO 9000 certified. Moreover, the company has also planned to adopt a holistic approach to its SCM practices by consolidating the suppliers of the company. All these initiatives have aided the company and its suppliers to perform their business operations by applying increased ethical concerns in terms of quality and transparency (Plambeck and Denend, “The Greening of Walmart’s Supply Chain”).

SCM is determined to be an important element for retailing and other related companies to perform their business operations effectively. Moreover, with the growing demand for superior quality goods and/or services is observed among consumers in worldwide market segments. The case of Walmart about the SCM issues has been adopted for identifying the importance of ISO 9000 certification among companies which presents a relatively challenging and unique doctrine to be studied.

The topic is based on the notion which signifies that SCM practices, within the organizational context, are determined to be an important element that is essential to procure quality goods or services efficiently. It is worth mentioning in this context that with the development of technology and globalization effects, the market competition has intensified. In this respect, consumers are also recognized to be demanding superior goods at competitive prices. This particular understanding can be observed concerning the SCM practiced within Walmart wherein the suppliers are required to be ISO certified to assure that the goods procured are by the specified quality standards. Moreover, this topic also seemed to be emphasizing the importance of principles and standards for ethically conducting SCM operations within the global periphery.

The restructuring process of Walmart facilitated the company with the opportunity of acquiring ISO 9000-certified suppliers in a global context. This particular strategy adopted by the company has assisted in assuring that superior quality goods are procured from authentic and reliable suppliers through a holistic approach in its SCM process. However, this approach in the long run may affect the position of the company and increases the risk of a higher supplier bargaining position. This factor may reduce the effectiveness of the company in prospects as well as increase costs for procuring superior products and maintaining economies of scale and cost efficiency. ...Download file to see next pages Read More