Question

MARKETING QUESTION: Please briefly research and share a company that you feel gets supply chain management. Explain why they are successful in this marketing effort. Be sure to include two outside sources. Your post should discuss the details regarding supply chain management strategies used by the company, and thoroughly explain why you think the company you chose does an excellent job managing the supply chain from suppliers, manufacturers, warehouses, transporters, and retail outlets.

Answer 1

Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, transportation intermediaries into one seamless process. This allows the company to ensure its customers that their products are available at the right time and place. After considering this definition, I believe that Wal-Mart is a company that has mastered supply chain management. The company has achieved this advantage through various measures.

Fewer Intermediaries. Wal-Mart prefers to work directly with its manufactures who are directly responsible for their products in the company's warehouses (Lu, 2014). This is known as vendor-managed inventory. By reducing its intermediaries, the company can better keep track of its products, making sure they arrive on time.

Vendor Partnerships. Wal-Mart chooses vendors who can supply the best price and are able to meet the company's demand . In addition, the company works toward long-term relationships with its vendors which ensure it gets the best possible prices .

Cross Docking. Cross docked merchandise arrives at the dock of the distribution center; not long after, it is sent to another dock where it is loaded on a truck to be delivered to a specific store . This means that products do not spend a long time in inventory. As a result, the company can save on inventory storage costs and pass these savings to consumers.

Technology. In its supply chain, Wal-Mart utilizes various forms of technology such as radio frequency identification tags (RFIDs) that allow it to keep track of its inventory . Wal-Mart also utilizes a database that stores sales and inventory data. This data are then shared with suppliers to tell them when to ship more products.

Each of these measures has helped Wal-Mart keep its prices incredibly low through the use of everyday low pricing. As a result, the company has built a loyal customer base which allows it to operate successfully.