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Global Supply Chain Management: Case of Wal-Mart - Essay Example

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This research aims to evaluate and present the supply chain practices followed at Wal-Mart that have been quite efficient. It was due to its efficient supply chain that Wal-Mart was able to reduce its cost. It focused more on the customer needs…
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Global Supply Chain Management: Case of Wal-Mart
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Download file to see previous pages The intention of this study is Wal-Mart. It was found in the year 1962 and was incorporated in 1969, since then it has been serving the US market. Wal-Mart comes under the category of retail stores. It is the largest grocery retailer in the United States. It is an American multinational corporation which is listed publically on the New York Stock Exchange. Wal-Mart runs a chain of discount stores and warehouse stores. Wal-Mart covers the 18th rank of the world’s largest public corporation according to the Forbes Global 2000. It is also the largest public corporation when ranked according to the revenues. The warehouse stores that it owns and operates are named as Sam’s Club retail warehouses. Because Wal-Mart is a retail store so it is obvious that it is a player of the retailing industry. Wal-Mart has approximately 8500 stores in different countries and serves the world market. Wal-Mart’s operations are listed under three divisions, namely Wal-Mart Stores US, Sam’s Club as mentioned before and Wal-Mart International. Wal-Mart’s business model comprises of nine different retail formats that it follows. These retail formats include supercentres, food and drugs, merchandise stores, small markets, cash and carry stores, warehouse clubs, apparel stores, discount stores and restaurants. All the products and services that are provided by Wal-Mart lay under the nine different retail formats that it follows. The Wal-Mart Stores in US sells a variety of non-grocery items like generic drugs. At the discount stores, the products that are sold are of the general merchandise category and also a selection of groceries. These stores also comprise of a pharmacy, a bank branch, a tire shop and a fast-food outlet. The Wal-Mart supercentres are like hypermarkets. It consists of a full-service supermarket where everything from meat and poultry to dairy products, from frozen food to garden produce, from fresh seafood to baked goods is sold along with the features offered at discount stores like the pharmacy etc. The Wal-Mart market is chain of grocery stores which offer a variety of products. The variety of products offered include full line of groceries, pharmaceuticals, health and beauty products, photo studio service and also a limited selected items of the general merchandise. Wal-Mart Express is a junior discount store which provides a smaller range of services like simple grocery shopping, check cashing and gasoline. These smaller discount stores are usually located in small towns. Sam’s Club is the chain of warehouse clubs as mentioned before. This chain sells groceries and general merchandise in large quantities. Some of the warehouse clubs also sell gasoline. Wal-Mart also serves the international market following the same retail business model. So mainly, the products offered by Wal-Mart stores comprise of grocery items and the general merchandise items. Supply Chain Practices The supply chain practices followed at Wal-Mart have been quite efficient. It was due to its efficient supply chain that Wal-Mart was able to reduce its cost. It focused more on the customer needs. In a very short time the company was able to offer a wide range of products at the lowest costs and this was due to the result of automation that it introduced into its distribution centers and the computerized inventory system (ICFAI CENTER FOR MANAGEMENT RESEARCH 2003) The ...Download file to see next pagesRead More
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