Swot Analysis Of Walmart 's Supply Chain

The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.

The two supply chains of Walmart and Amazon are different from each other and are efficient at their own perspectives. Both the supply chains are highly efficient in reaching out the customers in different ways. Walmart’s supply chain is completely based on store based retailing whereas Amazon’s supply chain is based on online retailing. The various methods followed by Walmart in its supply chain are vendor management inventory, cross-docking and central warehousing. Amazon acts as a retailer, as a third party and as an agent in supply chain management while selling various products through online.

Wal-Mart’s supply chain is obsessed with cost and is facilitated by a low implied demand uncertainty, their impressive logistics system and their management information systems. Their supply chain is able to respond quickly to fill a wide variety of products to keep merchandise on Wal-Mart’s shelves. Wal-Mart’s level of coordination along the supply chain is excellent; it would

Wal-Mart was known for its excellent supply chain management. Wal-mart grew in the 1960s to 1980s and benefited from improved road infrastructure and the inability of its competitors to keep up to changes in legislation. The main change was the removal of “resale price maintenance,” which had prevented retailers from discounting merchandise. A strong and efficient supply chain is the key to distribution and keeping their customers satisfied with the promise of “Everyday Low Prices.” Things within the supply chain in which Wal-Mart excelled at would include logistics, purchasing, retail decisions, and limiting the overall bullwhip effect of the supply chain.

A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization’s success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world’s largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota.

Supply chain is the process of getting a product from point A to point B. With how advanced technology has become, there are more ways than ever to transport the product. The goal of a supply chain managers is to get the product into their hands. The mangers negotiate with the suppliers to purchase the raw materials. Then, they ship those materials as efficiently as possible through trucks, ships, and trains. Then finally, they do everything they can to make the product gets to the store on time so the consumer can enjoy the product. Why is this so important? Well, without it, we as the consumer wouldn’t enjoy that fresh produce that Kroger provide or the convenient drive thru pharmacy. Everything we own is because of a company’s supply chain, and without these supply

Walmart and Amazon have become global, household names in the US and for good reason: both of these companies have revolutionized the way in which we shop. Amazon offers a convenient experience, and an ever-expanding selection of products whereas Walmart has a wide network of store locations and famously low prices. As investments, these companies highlight the dichotomous nature of the retail industry – brick-and-mortar vs e-commerce; high growth vs steady growth; US vs International; actual vs market expectations. This report provides an in depth comparative analysis between Walmart and Amazon. We will first summarize the industry and these companies, followed by an analysis of market position and financials, and finally an

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

Target Corporation main competitors are Walmart and Sears. While Walmart is leading their industry of major retail chains, Target is not far behind as they are currently ranked second amongst the major retail chains. In order to maintain their growth and competitive advantage, Target needs to pay close attention to their competitor’s market share, product quality and the unique selling proposition in comparison to their own. In order to maintain their position in the market, Target should be analyzing the external factors of their competition using metrics that will allow them to use that information to set objectives, rate their own performance, and plan for future success for the organization.

To get a better understanding of the issues that face Walmart, it is a good idea to do some research to understand the company and its competitors. This can be done by finding out what Walmarts strengths and weaknesses are by conducting a SWOT analysis. A SWOT analysis stands for Strengths, weaknesses, opportunities, and threats. By using this tool SWOT, this will show and identify the strengths and weaknesses of Walmart and what opportunities and threats there are in the environment (Dyson, 2002). Once these areas identified strategies that can be developed to build on Walmart's strengths, get rid of weaknesses, manipulate the opportunities and counter the threats (Dyson, 2002). The strength and weaknesses are what is internal to Walmart, and opportunities and threats are what is external. Meaning what is out there in the market and they are happening even if they like it or not. By doing a SWOT analysis will allow a business according to Dyson (2002), “to attempt to connect internal and external factors to stimulate new strategies” (pg. 633). A SWOT analysis can be conducted at any time for a business, especially if the environment is changing so they can respond proactively. Typically a company would want to analyze at least once a year. Below is the SWOT analysis for Walmart:

With the intent to increase its products’ quality and to contribute with the United States economy, Wal-mart “has pledged to buy an extra $250 billion in U.S. made goods over the next decade” (Pickett, 2015). This initiative, though very convenient to U.S. economy, will affect negatively Wal-Mart’s finances. The fact that the dollar is getting stronger every day is making the local manufacture more expensive than importing. As a result,

Supply chain is one of the critical aspects that can make or break any company. The research will also concentrate on aspects of supply chain.

Wal-Mart was successful in launching the new technologies in their supply chain management system like “Cross docking” which makes sure that once the order is placed it is tracked from the warehouse till it reaches the end customer. In this system, the finished goods were directly picked up from the manufacturing plant, sorted out and then directly supplied to the customers. The main plan of Wal-Mart’s SCM is providing good quality product to customers with lower price. In addition, Wal-Mart also plans to minimize it inventory quantities (University of San Francisco, 2010). In order to achieve those plans, Wal-Mart integrates manufacturing, suppliers, and warehousing together. Wal-Mart purchases the goods from very fast range of vendors. In order to get the right product at right place and at right time they need to maintain a

Over the past ten years, Wal-Mart has become the world’s largest and one of, if not the most powerful retailer with the highest sales per square foot, inventory turnover, and operating profit of any discount retailer. In its transition from regional retailer to global powerhouse, the organization has become extremely successful with supply chain management. Wal-Mart began with the goal to provide customers with the goods they wanted whenever and wherever they wanted them. The company then focused on developing cost structures that allowed it to offer low everyday pricing. Walmart then concentrated on developing a more highly structured and advanced supply chain management strategy to exploit and enhance this competitive advantage and assume market leadership position.

Walmart stores can be found across the United States and 26 other countries globally, including – Canada, Mexico, Brazil, Puerto Rico, Ghana, China, United Kingdom, India, and others. In order to adequately serve the expanding demand for quality goods at reasonable prices – Walmart has to ensure that its supply-chain functions efficiently on a regular basis. To this end, in what follows, the author explores the manner in which Walmart manages its supply-chain, the impact of the management of the same, and the organisational theory of the company – in the successful pursuit of Walmart 's vision and strategies. To commence this examination, it is imperative to revisit the fundamental vision and strategies of Wal-Mart Stores, Inc.