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Supply Chain Management of Wal-Mart Way - Essay Example

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This paper talks about Wal-Mart is flagship company that has gained competitive advantage by its creative and dynamic supply chain management. The company not only reduced its cost on slow inventory but has also been able to exploit the ‘demand’ of the customers. …
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Supply Chain Management of Wal-Mart Way
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"Supply Chain Management of Wal-Mart Way"

Download file to see previous pages From this discussion it is clear that in the highly competitive environment of global business, companies develop unique competencies to maintain strategic positioning within the industry. The various external paradigms and constantly changing environmental factors necessitate organizations to evolve new strategies and mechanisms to meet their challenges. Porter believes that doing business differently significantly helps companies to maintain leverage. Flexible approach to business strategies and plan hugely support organizational vision, mission and goals. Thus, strategies become critical element that promote creativity and provide them with competitive advantage. The paper would be analyzing and evaluating supply chain management of Wal-Mart US an effective tool of competitive advantage.This paper declares that Wal-Mart was established by Sam Walton as a small grocery store in 1962 in Arkanas, US. It was soon expanded as chain of stores finally setting up as a supermarket chain. Its wide ranging product is designed to meet the various needs of household. It is focused on the changing needs of the customers and therefore strives for flexible approach in its strategies and plans. It started expansion across the globe from 1991 and today boasts of around 1.8 million associates or workers in nearly 7000 stores across the world. The company extensively relies on technology to enhance its operational efficiency that significantly helps its goals of ‘every day low price’ on its various products....
The company extensively relies on technology to enhance its operational efficiency that significantly helps its goals of ‘every day low price’ on its various products. As the largest retailer in the world, Wal-Mart has been creatively exploiting logistics and supply chain for its niche market position. The effective supply chain and logistics help coordinate the organization’s various linkages with the external agencies and promotes efficient receipt and delivery of goods and services. It has judiciously used advancing technology to improve its operation efficiency in supply and distribution of goods. Data collection method The relevant data has been collected through secondary sources found through literature review, company website and internet. Review on supply chain management Situation analysis Effective supply chain management hugely facilitates smooth flow of information, goods and services and financial transactions at different levels of operations. In the current times, it is a critical element of competitive advantage because its main components like procurement, distribution, logistics and inventory are essential aspect of timely delivery of desired goods to the target segment. At the same time, they also help the companies to reduce cost of slow moving goods and meet the demands of products that are in high demand. The use of technology helps to evaluate and forecast demand and fill supply to meet the contingencies. The company has centralized its distribution system by creating ‘hubs’ or warehouses from where it dispatches all the goods to their respective customers/ retailers. The hubs are vital part of its effective supply chain as it also helps Wal-Mart to buy goods directly from the manufacturers. It therefore serves ...Download file to see next pagesRead More
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