Question

Value chain system involves many interrelated activities to produce a product or service to a consumer. The aim is to reduce cost and increase visibility and sales. To do that all channels in the system must be synchronized. It starts with the supplier side for input, production or availability of products and service by the company and ends with distributing channels.

One of the major primary activities for Walmart is inventory management through efficient flow of stocks. By maintaining efficient management of stock Walmart can ensure loss of revenue because people who purchase items must have access to all items that they are looking for. It can set order level for critical items. Electronic tracking systems can be used and there are technologies that monitor the level of stock when people make purchase at the store.

Support activities include human resource management, maintaining good relationship with suppliers, technological development and infrastructure. Amazon has become a dominant force because it uses technology efficiently. What Walmart can do here expand its presence technologically and develop creative ways of delivering items for customers. One good initiative that I observed with Walmart is ordering online and piking items at stores, which will save time for consumers. Plus, it can use to efficiently forecast sales and arrange supply of products in efficient manner.

Do you agree with the posted above? why?

Answer 1

The opening paragraph describes the value chain activities and their importance and interrelation in bringing a product to the end customer. It tells that the value chain begins from the suppliers who provide raw materials to the manufacturing plant where the product is manufactured and given to the distribution channels to reach the end customer. It rightly says that this value chain system is planned and designed such that it helps in decreasing costs and increasing sales.

Then the description of Walmart inventory management is described which says that efficiency of inventory management is required in Walmart for a smooth flow of stock and easy access of items to customers at all times. It tells the various ways in which inventory can be stocked up to sufficiency at all times. These are setting order levels, electronic tracking systems etc.

Lastly, the other initiatives to take other than inventory management are explained which are HRM, relationship with suppliers and infrastructure and technological development. It describes how Walmart can expand its presence by working digitally and making online shopping and delivery available for customers. This will help in improving customer satisfaction, forecasting sales and inventory management efficiently.