Supply Chain Management and Walmart Essay Example
Supply Chain Management and Walmart Essay Example

Supply Chain Management and Walmart Essay Example

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  • Pages: 3 (752 words)
  • Published: June 2, 2017
  • Type: Case Study
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Walmart's exceptional performance is supported by its effective Distribution System and Logistics Management. By directly sourcing goods from manufacturers, the Distribution System eliminates intermediaries.

Walmart engages in negotiations with manufacturers to ensure the acquisition of products at the lowest market cost, thereby fostering long-term relationships with vendors. The employment of Barcode Technology on products maintains a comprehensive inventory of all items entering and exiting the distribution center. Additionally, Walmart maximizes efficiency through the use of portable electronic devices that replace physical paperwork, streamlining processes while providing consistent and precise product information in real-time.

Walmart employs skilled and experienced drivers who operate the fastest distribution system for products across the US. These drivers report job details to their supervisor on a daily basis and utilize the Private Fleet Driver Handbook to adher

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e to the code of conduct.

Walmart implemented two systems to maintain their low prices and efficiently communicate with vendors worldwide. The Cross-Docking system was introduced for this purpose, while the Satellite Communication System was implemented in 1987 to transfer data within the company and between vendors globally.

Walmart uses its extensive reach of over 10,000 stores across 27 countries as a vital means of communication between management and employees globally. Additionally, the company leverages IT capabilities to effectively address customer needs, providing a broad range of services such as Automated Reordering System and cost-effective pricing.

Walmart and Procter and Gamble teamed up to share supply chain data, resulting in boosted sales by meeting customer demands faster and maintaining store inventories. Walmart uses RFID technology to track merchandise, making checkout and invoicing quicker.

Walmart deploys an Algorithm System to predict th

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precise quantities of their products from receiving to delivery, complemented by the Accelerated Delivery System. These diverse technologies have significantly enhanced the productivity and convenience of Walmart's supply chain. The Cross-docking system is a crucial accomplishment that expedites and facilitates the distribution process. It involves unloading incoming merchandise and directly loading it onto delivery trucks or trailers bound for stores.

By utilizing advanced technology and various supply chain management techniques, Walmart is able to reduce the need for storing all products and make the handling and storage of finished goods more manageable. This approach allows Walmart to provide continuous service to their customers, suppliers, stockholders, and trading partners. The company also employs a combination of adopted and in-house invented techniques in their operations.

Walmart utilizes various advanced strategies in their procurement and distribution processes to reduce costs and increase efficiency. They prefer to work directly with manufacturers, thus eliminating the need for middle-men which lowers purchasing costs. Additionally, they opt for local and regional vendor suppliers and conduct quick transportation. Another notable skill is their utilization of barcode technology, which enables them to keep a detailed record of all products coming in and out. This includes information such as past selling prices and sold quantities, among other benefits. These tactics aid Walmart in maintaining low costs, benefiting both the company and their global customer base.

Modern technologies enable management to continually monitor employees and ensure that duties are performed productively, ultimately contributing to the expansion of the business. Logistics Management employs over 3,500 experienced drivers and utilizes the Private Fleet Driver Handbook as a code of conduct for transportation of merchandise via its fleet of

trucks. The company effectively transfers from the supply chain to the demand chain.

Cross-docking, with its five typical approaches, is a highly effective practice due to the direct pickup of goods from manufacturers that decreases storage and handling expenses. Inventory Management utilizes IT and Communication Systems to swiftly communicate with employees worldwide, providing the quickest response to meet customer needs.

The utilization of the Algorithm and barcoding system in collaboration with Atlas Commerce has proved to be both beneficial and effective for quick communication with stores and reduction of unproductive inventory. This assists in the distribution of necessary products and ensures accurate fulfillment of customer demands.

Walmart's transportation costs are minimized, resulting in products being transported within a timeframe of 48 hours. Additionally, the company has demonstrated efficient and timely shelf-replenishment capabilities when compared to competitors. By purchasing goods in large quantities, Walmart maintains low expenses and overall bargaining power, which leads to increased discounts for customers.

Thanks to its sophisticated abilities, Walmart is able to predict inventory levels with precision, resulting in increased storage capacity and reduced safety stock concerns. Additionally, the company expertly leverages its working capital for optimal utilization.

Moreover, the speedy disposal of outdated merchandise is achieved without compromising the excellence of the items.

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