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In: Economics

Investigate Walmart's SCM, summarize your findings in one page. Make sure your summary is comprehensive. Format:...

Investigate Walmart's SCM, summarize your findings in one page. Make sure your summary is comprehensive.

Format: Font Style: Arial, size: 13.

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Expert Solution

Walmart is one of the largest and most successful retailers which has made its impression all over the world. The retailer is successful only because of its efficient and effective supply chain management. The major focus of Walmart is to bring down the cost and better use of technology to keep all the supply chain partners connected. The retailer has incorporated the below mentioned practices to make its supply chain effective :

  • Direct contact with the manufacturers : Walmart has a direct contact with the manufacturers bypassing the middlemen and thus cutting down the margins earned by the middlemen. As a result the cost reduces and the profit margin increases.
  • Vendor managed inventory (VMI) : As the middlemen are bypassed, the inventory is directly managed by the vendors.
  • Cross Docking : Cross Docking is the practice of inbound trucks passing the inventory directly to the outbound truck without maintaining any warehouses. Thus it reduces the cost of operations.
  • Sharing of Real Time Information : Walmart has invested heavily in information technology system connecting all the supply chain partners and thus the real time sales information is passed along all the supply chain partners. As the real time sales information is shared, so the inventory is managed properly and there is no out of stock condition.
  • Cooperation and Collaboration with suppliers : The retailer has strong cooperation and collaboration with the suppliers, thus maintaining good relationship with them.
  • Vertical Management system : There is a strong relationship across the vertical partners of the supply chain.
  • Walmart owns its fleet of trucks and thus make the supply chain more prompt.

Thus the retailer is reducing the cost at every stage and connects all the supply chain partners connected to make its supply chain effective.


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