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Process and Location Strategy: Wal-Mart - Research Paper Example

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In the essay “Process and Location Strategy: Wal-Mart” the author examines the understanding of supply chain management at Wal-Mart providing valuable insights into the flawless process strategy that the company follows. Impeccable logistics form the backbone Wal-Mart’s success…
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Process and Location Strategy: Wal-Mart
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"Process and Location Strategy: Wal-Mart"

Download file to see previous pages Saccomano (1998) avers that the company has also mastered the techniques of ‘in-store’ logistics. The retailer adopts a cross-docking operation inside the store. This enables the company to move the SKU (stock-keeping unit) directly from the truck to the shelf of the shop floor. This, in turn, helps the company save on the cost of inventory and valuable storage space.
The distribution centers of Wal-Mart are so located that each caters to anywhere between 75 to 100 stores in a 250-mile radius. Walmartstores (2011). In terms of deciding the location of a new store, the company follows the principle of proximity. Fettig (2006) maintains that Wal-Mart economizes on transportation costs as it opens and operates stores that are close to each other. Wal-Mart never gives up on store density even if it means delaying the launch of a store in the lucrative market.
The company, as a location strategy, builds out its store network to reach out to that ‘plum location’ even if it means sacrificing the first mover advantage in a particular market. This location strategy also enables Wal-Mart to easily transfer its experienced managers to new stores and spread the ‘Wal-Mart’ culture.
Thus both the location policy and the process policy of Wal-Mart is geared to save costs enabling the company to achieve an ‘Everyday low price.’  Wal-Mart has, since its inception in 1962, grown by leaps and bounds to become the world's largest retail company today. According to Walmartstores (2011), the Bentonville, Arkansas based company has been ranked among the top ten retailers in Fortune Magazine’s 2010 Most Admired Companies survey. ...Download file to see next pagesRead More
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