The paper "Strategy Supply Chain Management of Wal-Mart" is an outstanding example of a Management case study. The success of any business is largely dependent on the manner in which the business is able to use its resources so that efficiency can be achieved and services delivered at the optimum cost. This requires that the business integrates different factors and looks towards considering the different factors which will determine the long term success of the business. Wal-Mart which is in the retail sector has been able to integrate the supply chain network and ensure regular changes so that they are able to keep pace with the rapid changes that the world is witnessing.
This has helped Wal-Mart to grow its business operations over 15 countries and being able to ensure proper integration of the supply chain which has looked into backward integration has developed its business. This report thereby proposes to look at the supply chain network of Wal-Mart by highlighting the manner in which their supply chain operates; the manner in which the chain can be better developed; the difficulties that that business faced in the implementation of the system and the manner they overcame those difficulties.
In addition to it, the report also presents the agile supply chain fundamentals and the manner in which Wal-Mart has been able to incorporate it in their development plan. Thus, the paper looks towards the entire supply chain and helps to develop the required framework through which the supply chain of Wal-Mart has been developed. Background Information Wal-Mart is the largest retail chain player which has over 6,500 stores all over the world and operates in over 50 states all over the world.
The company employs over 1.8 million people and has been able to develop its supply chain network in such a manner that the business has gained efficiency and has ensured that they are able to provide quality services to its customers. The development of the supply chain management by Wal-Mart which has looked towards using “ Everyday Low Price” which offers products at a low rate has ensured that the business has been able to deliver quality service. Wal-Mart through this method has ensured that they provide product and service to the customers in a timely manner so that they are able to provide better services and ensure maximum customer satisfaction. Development of Wal-Mart Supply Chain Wal-Mart looked towards developing the supply chain since it started business in 1962.
The owner at that time looked towards purchasing the product in bulk quantity and then dispatching it to the store from where it was sold directly to the customers. The process adopted in the beginning looked towards removing the middle man and gaining efficiency through this system.
The company when it started its business thereby focused on the traditional method as shown in the diagram below (Hugos and Thomas, 2005) Wal-Mart to begin with relied on the traditional method where goods passed through different mediums and processes before being finally offered to the customers. The increasing demand for discount retailing through low-cost retail outlets made Wal-Mart work on this concept and develop its stores by coming out with the concept of warehouse storage which ensured that Wal-Mart was able to develop its supply chain network.
Bhattacharya, M., Chao-Hsien, C. and Mullen, T. 2007. RFID Implementation in Retail Industry: Current Status, Issues, and Challenges. Accepted to Decision Science Institute (DSI) Conference, Phoenix AZ, for November 2007 conference.
Chopra, S. and Meindl, P. 2004. Supply Chain Management. Upper Saddle River, NJ: Prentice Hall.
Disney, S. and Towill, D. 2003. Bullwhip Reduction in Supply Chains: The Impact of VMI International Journal of Operations and Production Management. 23 (6), 625-651.
Enarsson, L. 2006. Future Logistics Challenges. Frederiksberg, Denmark: Copenhagen Business School Press.
Garfinkel, S. and Rosenberg, B. 2005. RFID Applications, Security and Privacy. Addison-Wesley Professional
Hugos, M. and Thomas, C. 2005. Supply Chain Management in the Retail Industry. Wiley.
Kampstra , R., Ashayeri, J. and Gattorna, J. 2006. Realities of Supply Chain Collaboration. University of Wollongong, Australia: Centre for Supply Chain Research; and United Kingdom: Cranfield School of Management
Michael, K. and McCathie, L. 2005. The Pros and Cons of RFID in Supply Chain Management. Proceedings of the 2005 International Conference on Mobile Business. Sydney, Australia. 623-629
NuThink, Inc. 2001. Improve Profits, Competitiveness & Satisfaction with a high performance Retail Supply Chain.
Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. 2009. Designing and Managing the Supply Chain, McGraw-Hill