Analyzing Supply Chain Management and Innovation (WAL-MART) - Essay Example

Analyzing Supply Chain Management and Innovation (WAL-MART Executive Summary Wal-Mart is a multinational corporation that operates a series of warehouse stores and discount department stores around the world. The company has risen steadily to dominate the retail market since its inception in 1962. The company’s headquarters are in Arkansas, USA.Supply chain management refers to the process of designing, producing, using and delivery of products to targeted consumers (Wisner, Keah-Choon, and Leong, 73).

The supply chain is the channel through which a business uses to get its services and products to the market. Supply chain management is very important, especially for bigger companies with a wide customer base such as Wal-Mart. The success of Wal-Mart stores Inc. can be attributed to its ability to manage the supply chain efficiently. This essay analyzes the strategies that Wal-Mart uses for its supply chain management and innovation practices.2. Customer FocusWal-Mart has a wide array of products targeting families and middle class individuals with modest incomes.

Most of these customers are more focused on the quality of the products they purchase from Wal-Mart stores, rather than the branding of the products.3. Supply Chain DesignThere are four main elements of Wal-Mart’s supply chain management strategy. These are technology, vendor partnerships, integration, and cross docking and distribution management (Leeman, 36). The whole process starts from strategic sourcing, which is aimed at identifying high quality products at the best prices from reputable suppliers who have the ability to meet the existing demand.

The organization then forms strategic partnerships with most of the vendors, creating a long term relationship that benefits the customers.The suppliers will then ship their products to the Wal-Mart stores for cross docking and delivery to stores in other locations around the world. The cross docking process, efficient management of distribution, and the transportation process helps Wal-Mart to maintain a constant inventory to cater for market demand. The company also focuses on eliminating inefficiencies that can undermine the whole process.

Wal-Mart is highly regarded for its innovative business practices in the industry(Leeman, 69). For instance, it was among the first companies on the global scene to centralize their distribution system and rely heavily on Information Technology. Wal-Mart manages its Supply chain by using a highly integrated approach that brings together elements of logistics, operations management, information Technology, and procurement. The success of Wal-Mart’s strategy of managing the supply chain can be seen in the company’s ability to easily integrate its suppliers, manufacturing process, warehousing, and the distribution process into a single platform. 4. Strategic Alliances/Channel PartnershipsWal-Mart has been able to form various strategic partnerships with suppliers and other stakeholders in order o improve the quality of its services and products, while also satisfying consumer needs and managing its supply chain efficiently.

The company has joined forces with different vendors and strategic partners including several organizations in the logistics industry(Leeman, 83). These alliances have been able to help the company differentiate itself and its products in the market. Wal-Mart uses these partnerships to brand itself and reach out to more customers in different parts of the world.5. Supply Chain PerformanceThe basic elements of a good supply chain management strategy include, operations, purchasing, distribution, and integration.

Efficient management of the supply chain calls for a great strategy with regard to all these elements. Most of the operations in the supply chain focus on anticipating and planning for demand through forecasting and inventory management. Through good demand planning and forecasting, an organization is able to monitor its inventory. This ensures that the company has the right amount of products to supply to the market at affordable rates and manageable costs(Wisner, Keah-Choon, and Leong, 113).

The distribution function of the Supply Chain management process entails moving products and services to the market for access by the targeted consumers. Integration, on the other hand, refers to development of collaborative effort in managing workflow across all departments in an organization in order to maximize efficiencies, build, a lean supply chain that will be easier to manage.6. InnovationImplementation of an e-business strategy can go a long way in enhancing an organizations management of the supply chain.

Such a strategy would ensure the company increases the efficiency of its communication process, client relations, as well as monitoring inventory. Immense technological infrastructure that is very useful in a company’s supply chain management process. This technology allows the company to forecast and plan for demand accurately as well as helping the company create and maintain strong customer relationships.Works CitedLeeman, Joris. Supply Chain Management: Fast, Flexible Supply Chains in Manufacturing and Retailing.

Düsseldorf: Institute for Business Process Management, 2010. Print.Wisner, Joel D, Keah-Choon Tan, and G K. Leong. Principles of Supply Chain Management: A Balanced Approach. Mason, OH: South-Western, 2011. Print.