Global Communication Systems Referring to Walmart - Assignment Example

Global Communications One cannot talk about global communication systems and their adoption without referring to Walmart. The company has been at the forefront of companies that have successfully adopted global communication systems, in the pursuit of globalizing its brand. It is only after Walmart adopted these systems on a global platform, that it became the supply chain management trend setter and leader. Due to the current volatile financial systems around the globe, companies are being demanded to develop an edge over their rivals and one of the ways to gain a competitive advantage is through adopting global communication systems. Croasdell et al., states that Walmart’s core goal is the provision of consumer goods at lower process than their competitors, which it has managed to accomplish largely due to embracing technology. Technology has enabled Walmart to be a leading innovator in the retail industry. Global communication systems can be used to improve services offered in many departments of the company, ranging from customer service, distribution, management and sales (Croasdell et al., 2003). At Walmart, executives have adopted a communication system to enable them supervise auxiliary staff in thousands of stores. Oral communication had been the norm at Walmart for many years, but with the globalization of the company and an increase in the number of stores, the need for adopting global communication systems was a necessity. It therefore led to the development of the six channel satellite system, which is an integrated satellite communication network for easier communication between executives and lower level managers and employees. The features of the system include a video transmission network that is one way and a two way data and voice system that allows the head office to relay information to Walmart stores all over the world. This global communication system is used for a variety of functions such as allowing management to oversee stores on a global front and even boosting staff morale to increase their sales. The main objective of this set up is to allow communication between the stores via an integrated satellite link that is voice and video enabled. The system allows for communication among Walmart stores and between the stores with the head office. According to Hollenbeck et al., the system has been instrumental in accessing customer reviews on their products and thus, enabling the head office to develop products that are up to the standards desired by customers all over the world. Additionally, the system has improved communication between top tier management and staff in distant Walmart stores and essentially saving time and money. As a result, Walmart has been able to improve its efficiency levels through managing human capital appropriately. This has contributed to its status as a trend setter and leader in the retail industry (Hollenbeck et al., 2009). Besides enhancing communication for Walmart employees and the management staff, the systems have been applied in managing inventory. Not only has the company adopted global communication systems, but it has invested aggressively on IT, leading to the creation of a system that can track merchandise inventories and sales in stores globally. Walmart’s adoption of a satellite communication system has enabled it to minimize unproductive stock by enabling stores to manage their own inventory. Motiwalla et al., suggests that the communication system has enabled the company to avail more stock when the demand for a particular product rises, while reducing supply when demand falls. Consequently, a more efficient system of inventory management has been achieved. The staff at stores use computers linked to a radio frequency network in order to backup merchandise in inventory, keep track of deliveries and stock in their stores. In order to replenish goods and order management, they employ a Point of Sales system. Additionally, the company employs a voice based order filling (VOF) system in all its distribution centers for groceries. The system allows a person to pick orders via a speaker handset linked to the VOF (Motiwalla et al., 2003). The company also adopted a retail link system which was connected to its EDI system. The system has an extranet feature that enables Walmart suppliers access it and analyze the performance of their products, in reference to the products of their competitors. The system has been responsible for increased competition among suppliers and consequently, improved qualities and prices for consumer products. Through the use of the Massively Parallel Processor system, Walmart has been able to track inventory levels and the movement of their products. Inventory and sales information is relayed through a satellite communication system. Vasilchenko et al., states that since the 1990s, the retail link has been used not only to manage inventory ,but to replenish stock, forecast sales and new market opportunities and enhance planning between the various departments and stores in the organization. The system is known as CPFR (Collaborative Planning Forecasting and Replenishment). Through this system, Walmart is able to collaborate with key suppliers to forecast product demand on a real time basis via the internet. CPFR assists in reducing stock costs and facilitating the availability of inventory across the entire supply chain. Other communication systems include RFID (Radio Frequency Identification) technology that aims to replace the bar code system of scanning goods and therefore save on time and labour cost (Vasilchenko et al., 2011). Currently, Walmart is trying to adopt a mobile purchasing system that will expand mobile payments, e-commerce and consequently abolish credit company fees on cashier purchases and improve their customer service. The system, Current-C, develops quick response codes in the form of bar graph images in order to ascertain payments at cashiers. The communication system is convenient and is bound to increase sales for the company. Truly, adopting global communication systems is the way forward for all businesses. References Croasdell, D., Fox, A., & Sarker, S. (2003) Systems development by virtual project teams: A comparative study of four cases. Hershey: IGI Global. Hollenbeck, C.R., Zinkhan, G.M., French, W., & Ji Hee, S. (2009). E-Collaborative Networks: A Case Study on the New Role of the Sales Force. Journal of Personal Selling & Sales Management, 29(2), 125-136. Motiwalla, L., & Hashimi, A. (2003). Web-enabling for competitive advantage: A case study of Himalayan adventures. Hershey: IGI Global. Vasilchenko, E., & Morrish, S. (2011). The Role of Entrepreneurial Networks in the Exploration and Exploitation of Internationalization Opportunities by Information and Communication Technology Firms. Journal of International Marketing, 19(4), 88-105. doi:10.1509/jim.10.0134 Read More