Global Supply Chain Management of Walmart - Assignment Example

The paper "Global Supply Chain Management of Walmart" is a great example of a Management Assignment. Walmart is a large US multinational retail company operating a huge number of stores and warehouses globally. The headquarters of Walmart is situated in Bentonville, Arkansas, where Sam Walton founded the company in 1962. There are now approximately 11,000 Walmart stores worldwide, which collectively employ over two million workers. It is the biggest retailer in the world and the largest company by revenue (Walmart, 2014). The company operates under 71 different banners in 27 different countries, including the United States, Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, and the UK.

• Facilities and location

The company became well known when they started to contract a wide variety of suppliers to provide large numbers of products at low prices and to deliver them rapidly. Walmart buys huge quantities of products low prices i.e. bulk purchasing. The low prices offered by Walmart for their products attract a huge number of customers. Walmart is also in partnership with other multinational companies like Proctor and Gamble. This partnership has proved to be beneficial to both companies.

• Supply chain management

Walmart follows the concept of centralization in the distribution of their products. Around 80% of its goods are shipped to stores from their US center and the remaining 20% is shipped directly by suppliers. Walmart products are distributed and replaced every two days in bulk quantities (University Alliance, 2014.) In terms of logistics management, Walmart uses its own vehicles to deliver goods from the distribution center and provides recreation areas for the drivers. In order to check the proper delivery of products, the company monitors the orders from when they leave the warehouse until they reach the customers. The company also performs efficient inventory management in order to properly handle the records of the products.

• International business strategy

Walmart follows many different strategies to attract its international customers and suppliers and has expanded into the grocery market also. The main emphasis is on a constantly available supply of low cost, high-quality products. Walmart stores also focus on the products that are popular and in-demand among its customers according to their location. The main strategy is to supply the required products to the customer at low prices University Alliance (2014), Walmart makes every effort to understand its competitors in the market and performs accordingly. It values its suppliers and manufacturers, as they are the economic partners of the company. In countries other than the US, Walmart is known by a number of different brand names, for example in Mexico, it is known as Walmart de México y Centroamérica, in the UK it is known as Asda, in Japan it is called Seiyu and in India, Best Price.

As the company operates its stores in so many different countries, it follows strategies that are appropriate to these locations in order to satisfy customer needs. In China, for example, Walmart has opened its stores in areas where distribution facilities can be easily accessed (Cramer, 2014). In Canada, the company pays more attention to the clothing side of the business, as many other clothing companies present tough competition for Walmart. In Mexico, the company has revised its sales. Walmart is also planning to enter into e-commerce.

Global supply chain management

Walmart believes in the main strategy of providing customers with the required goods at low prices and as rapidly as possible. In the context of strategic sourcing, the company identifies suppliers that can deliver the products to the company at the best prices. Once these suppliers are in place, Walmart works on establishing long-term working relationships and good communication. The company implements and manages a cross-docking practice of products. This technique lowers the cost of transportation and improves delivery timings by removing inefficiencies (Cramer, 2014). The company also adapts to technological changes by incorporating new technologies and adapting the processes and systems in order to maintain an efficient supply chain. Technology is used to track store inventories and replace products quickly and in sufficient quantities. Walmart also makes use of the most recent developments in barcode and handheld technology. Due to these strategies, the company has established a dominant position in the global market.

Recommendations for Walmart’s global supply chain design

The global supply chain of Walmart has proved to be very beneficial for the company in the competitive market. It includes maintaining products at low prices and enhances a variety of stores. In order to attain a good position in the international market, Walmart has established a well-planned and organized concept of global supply chain management. However, there are a number of drawbacks that are yet to be improved. The company must focus on the inventory management of their products. As they are getting involved in e-business so the management of products in sufficient quantities is becoming an issue for the company, therefore they must properly manage their products. The company can also use computerized logistics systems in its cross-docking methods.

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