Wal-Mart's Supply Chain Practices Essay

4494 Words Jul 16th, 2012 18 Pages
Supply Chain Management – Case Analysis

Ivey Case Study

Supply Chain Management at WalMart

For: Dr. Chirag Surti BUSI 2604U Prepared By: Jeremy Abbaterusso 100217118

Supply Chain Management – Case Analysis

TABLE OF CONTENTS

Introduction and Summary…………………………………………………………………. . 3 Supply Chain……………………………………………………………………….. ……… .4 Logistics…………………………………………………………………………….. .4 Purchasing and Operations…………………………………………………………...6 CPFR and the Bullwhip Effect……………………………………………………….7 Information Technology……………………………………………………………………. .8 Future Initiatives……………………………………………………………………. .9 REMIX……………………………………………………………………….9 RFID……………………………………………………………………….....9 Performance………………………………………………………………………………..... 11 Other Information Recent
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Logistics Logistics involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging within an organization. With Wal-Mart this was stemmed from Mr. Walton’s idea of “discount retailing.” It was with this idea and the lack of transportation to
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Discount Store News, “Low distribution costs buttress chain’s profits”, 18 December 1989.

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Supply Chain Management – Case Analysis

the small area of Bentonville, Arkansas that Walton invested early in a distribution center in which he would fleet his own trucks. This expansion came with the furthered benefits of bringing down his cost per unit. The companies’ stores were located in low-rent, suburban areas, close to major highways. This was for easy transportation and to also make the distribution of products more efficient and cost effective. The key attributes to Wal-Marts hugely developed logistics department is: Cross docking or direct transfers from inbound or outbound trailers without extra storage Working with suppliers to standardize case sizes and labeling The 7,800 drivers at Wal-Marts finger tips Non-unionized and in-house Delivered majority of merchandise across the U.S. Average distribution centre to store was approximately 130 miles “back-haul” revenue – transportation of unsold merchandise on trucks that would be
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