Global Supply Chain

1083 Words5 Pages
Abstract The supply chain is a concept resulting from multiple independent entities that affect each other. This paper will discuss about Wal-Mart supply chain it will provide the six component, problems and approaches to solve the problems. Wal-Mart is one of the major retail in the world (Walmart 2011). Wal-Mart is continuously developing its business by developing its services and product portfolio. The supply chain of Wal-Mart is also effective to enhance its effectiveness within the industry (Hoppenstedt & Rathkolb 2005). Introduction Wal-Mart is the largest multinational company in the retail industry (Cullen and Parboteeah, 2008). Wal-Mart retail store was started by Mr. Sam Walton in 1945. Mr. Walton began his career as J.…show more content…
Wal-Mart emphasizes on customer demands and determination of customer’s satisfaction in determining places for its stores. Identification of customer demand helps to determine the locations for store and production facilities close to the consumers (Wal-Mart 2011). The selection of inappropriate locations in other region without considering income level and living standard of the customers may create problem for Wal-Mart in location selection. The analysis of macro and micro environment before selecting location would be effective to increase the supply chain management of the organization (Lambert 2008). Transportation: Transportation is intimately related to inventory decisions and also with the customer requirements (Bolstorff & Rosenbaum 2007). Wal-Mart uses stores to offer its products to the customers and by its own trucks for delivery (Wal-Mart 2011). The use of store and its own truck for transportation may create problem as strike by the employees may affect the delivery of its goods to the customers that would affect its market share and customer base. To eliminate this problem, management of Wal-Mart could make arrangement with external transportation companies that will be used in the situation of strike (Bolstorff & Rosenbaum 2007). Information: Information is an important component of the supply chain of an organization as it includes collection of information from end-users and to link them with resources
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