LOG503 Managing Logistics Operations (MOD 2) SLP - Essay Example

The logistical system of Wal-mart must work flawlessly so as to be able to manage such a big store. Wal-mart has a distribution system that distributes nearly 85 percent of the total wares sold in its own stores (Atchmeyer, 2002). Wal-mart’s major aim is to sell its goods at the lowest price possible (Atchmeyer, 2002; Mohan, 2003). To achieve this, Wal-Mart obtains goods directly from the manufacturers and sells them directly to its retail customers bypassing all intermediaries (Mohan, 2003).

Thus Wal-mart has its own distribution centers strategically located at different locations all over the US. The strategy employed here is that one distribution store can serve 150-200 stores (Atchmeyer, 2002). This has made sure that the stores no matter how far they are are within one day’s driving distance (Atchmeyer, 2002). The distribution centres operate 24 hours a day because the conveyer belts are laser-guided (Atchmeyer, 2002). An advanced opportunistic cross-docking procedure is in use; as the goods are picked directly from the manufacturer’s premises and directly taken to the retail consumers.

This ensures that the systems are very efficient as well as they do not need to store the material (Atchmeyer, 2002). It is basically from the stores directly to the shelves. The company owns a fleet of over 12,000 trailers 3,000 trucks (Mohan, 2003). In contrast to its competitors who subcontract the trucking services (Magretta, 2002). Additionally, the company is quite meticulous in hiring its drivers. For a driver to qualify to work for Wal-Mart, they got to have a track record of over 300,000 accident free miles without any major traffic violations (Mohan, 2003).

Wal-Mart has developed a number of methods to individually deal with each of its stores inventory (Magretta, 2002). The solutions are tailor made for each individual store in order to cover the logistical challenges posed. These measures