Walmart Supply Chain Analysis

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As Johnnie C. Dobbs, Wal-Mart can be seen as an efficient company in means of its supply chain management. As a start, Wal-Mart’s core strategy is based on its leadership in the cost domain where it tries to decrease its costs as much as possible compared to its competitors. It targets a wide range of customers by providing high volume-low cost products. Through the ability to power its cost drivers, Wal-Mart leads its competitors in means of cost and persistently tries as much as possible to saturate these costs in the supply chain. Wal-Mart’s supply chain has developed in many different areas to prove its efficiency over the years. In means of Wal-Mart’s purchasing power, Wal-Mart made sure to work directly with its suppliers especially those…show more content…
Concerning its distribution channel, Wal-Mart tried as much as possible to spread out across the U.S focusing on the fact of locating its distribution centers in suburban areas that are close to major highways reducing by this way its costs due to the benefit Wal-Mart gets from the low charges of these areas. Wal-Mart as well paid attention to an important point which helped it a lot in its expansion strategy for it aimed to stay local in the offering of its products in its different markets in which Wal-Mart attained the local consumer’s preferences. Wal-Mart’s supply chain exceeds this limit for it focuses on the layout of its stores as well. A lot of effort is put in means of displacement of the merchandise on the store shelves, the store design and color, and the offers that are always present to attract more customers. In means of its retail strategy, Wal-Mart was best known for its EDLP (everyday low prices) policy where customers enjoyed shopping for their products for the same prices each time. Wal-Mart met its customers’ needs through its discount stores, Supercentres, Sam’s Clubs and Neighborhood…show more content…
This advancement had a positive impact on the buying behavior of the consumer that was pleased with electronic purchasing orders. As for Wal-Mart itself, this technological campaign helped them in keeping records of their sales and inventory the moment a product’s bar code is swiped where it was possible and easy for them to spot the sluggish items in means of sales in order to cut them off and by that decrease the costs of the supply chain. Finally, one of Wal-Mart’s strong cards is his human force. Employees at Wal-Mart have the opportunity to shine and advance. They are given the chance to suggest ideas, take challenges, and be part of the production of the products. This atmosphere in work is a beneficial reason behind the amazing results Wal-Mart achieves and is one of the major reasons behind Wal-Mart being ranked as one of the best 100 firms in the U.S to work
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