Case Study: Walmart's Supply Chain Management

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Wal-Mart is one of the biggest retailer of its time who was known for being the major private sector employer worldwide. It has become an enormous company by identifying the market gap regarding customer services. They have tried to fulfill this gap through their market research of both small and large towns. As quoted in the case study Wal-Mart’s focus was on building up an efficient supply chain management system as it claims “Supply chain management is moving the right items to the right customer at the right time by the most efficient means.”

Q1) Walmart has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management. Discuss in detail the distribution and logistics system adopted by Walmart?

Distribution and Procurement Management
Walmart made its distribution and procurement system efficient by managing the prices they pay to the vendor. They make sure that no other vendor is charging lower than the present one
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Walmart strengthen their network with the supplier through computerization. It allowed stores to manage their own stocks which led to reduction in the unwanted wasted inventory. It collaborated with Procter and Gamble and joined hands for an automatic re-ordering system. This way an efficient supply of goods was managed leading to higher customer satisfaction as their demands are being met. This further led to better communication hence reduction in costs. In addition to this, the employees were given a hand held computer that were used to track record of sales .Moreover, alothrimic system was used to forecast the future demand. This also helped to solve the problem of bulk items. Centralized inventory dates showed the position of a product at a given time. Walmart is known for having the largest computerized retail system due to all these cost minimization measures due to which goods and stock level were easily
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