Walmart : A Efficient Supply Chain System

1. Wal*Mart’s basic strategy to create a competitive advantage in the discount retailing industry in the United States during the 1970s-1990s was the cost leadership strategy. With this, the Company was successful in using its strategy of “everyday-low-prices” to attract customers. Wal*Mart’s strategy of “everyday-low-prices” was to offer products at a cheaper rate than its competitors on a consistent basis, rather than relying on sales. The Company was able to achieve this due to its large purchasing power and efficient distribution channel. Wal*Mart’s cost leadership strategy was successful for many reasons. First, the Company was very competitive in terms of prices. Second, combined with low prices compared to its competitors,

Wal-Mart didn’t just get by with cost-saving methods. They were ahead of their competitor’s technology wise too. Even in the 1970’s, Wal-Mart was able to track inventories in their warehouses and link it with stores. They tracked their sales data for specific items and could increase or decrease their inventory accordingly, achieving a higher efficiency than other retail companies. Another aspect that Wal-Mart felt strongly about was expanding there reaches. In 1978, they introduced a Pharmacy, auto center and jewelry divisions.

Walmart is known throughout the entire world as one of the most popular chain department stores. Actually, most have probably visited a Walmart store in the past week. Though Walmart stores seem to be a normal part of life the average person more than likely has little knowledge that pertains to Walmart’s success and business culture. This paper will guide one through the history of the organization, why Walmart is successful, what could threaten or open new opportunities, and how might they hold a competitive advantage.

Wal-Mart has been successful in becoming the number one retailer. Purchasing items in large quantities is effective in lowering the prices for the consumers. Lower prices bring the customers in the doors which in turns sells the large scale of purchasing that Wal-Mart does. With the large scale of purchasing brings a cost advantage. This cost advantage is passed onto the customer.

First, it is important to understand that Walmart, being the economic super power it is, developed extremely quickly. According to the Company Profile Walmart Stores, Inc., Walmart was established in 1969, and shortly thereafter in 1972 become publicly traded on the New York Stock exchange. As the company continued to grow, in the 1980’s the company diversified into Supercenters, Sam’s Club (membership warehouse club), and even international operations. Walmart expanded and began to sell household items (2000), the launch of their “No Boundaries” cosmetic line (2001), an online music store (2004), the completion of Walmart Site to Store (2007), Walmart prepaid debit cards (2007), their very own home furnishing brand “Canopy” (2008), and finally their very own line of Sam’s choice coffee (2008). In 2009 the company took a huge leap

Having worked for a huge company like Walmart I know all too well of its buying power, affect in our communities and its tremendous financial other retail stores globally and domestically. I feel that the changes in technology has only catapulted the company to a new level of success. I’ve seen where the changes in information technology have helped Wal-Mart streamline its supply chain and reduce costs by tracking deliveries. Technology has also made it easier for Wal-Mart to source its products to different parts of the world, which I feel has also helped in tracking consignments and reducing inventory costs. Since Walmart has grown exponentially it has been able to reach more customers than ever. Through online retailing, Walmart sells

Wal-Mart is the world's largest retail and departmental store chain. Having business operations in 27 countries with 69 different brand names, Wal-Mart is able to serve a huge number of customers per day. Wal-Mart is the fastest growing and the most successful retail brand in the world. The factors which make it the strongest brand in its industry include large customer base, sound financial strength, strong brand image, and huge supply chain network. Wal-Mart has certain weaknesses in its operations and business setup like low acceptability of certain products, high employee turnover, and less recognition of newly introduced brands. These weaknesses can be overcome by availing attractive opportunities from the market and investing more in the most profitable areas. Wal-Mart faces the biggest threat from its competitors and ever-changing customer preferences.

Undra, Wal-Mart is an interesting company to choose for this discussion. Consequently, in my opinion, it is probably one the best companies that could have been chosen for this exercise. First, Wal-Mart is a pulverizing competitor in the retail world, with good reason. Honestly, I believe that both economic scope (combining multiple product lines) and scale (one product line) could apply to Wal-Mart. Nevertheless, whenever I see a new Wal-Mart being built next to a Food Lion or Kmart, I feel sorry for them. However, I will be the first to admit that if I stop at a store other than Wal-Mart, my first thought is usually, I wonder if this is cheaper at Wal-Mart. Consequently, Wal-Mart’s massive size allows it to maintain quite a few advantages

Walmart’s business strategy is to keep costs low and pass the savings down to the customers. Walmart accomplishes this strategy through several means. First, Walmart cuts costs in its procurement channels. Walmart cuts out the manufacturers’ representatives and works with suppliers directly. In doing so, Walmart saves 3-4% on costs. Also, Walmart is able to use its IT networks to make sure the company orders the right about of inventory from suppliers so that the Walmart stores experience neither overstock nor stock-out. Second, Walmart keeps its labor costs low. Walmart maintains a frugal culture for all employees. For example, executives at the company are prohibited from accepting meals and gifts from third parties. Additionally, Walmart provides store workers with wages and benefits that are below those given by competitors. Third, Walmart invests in ways to cut distribution costs. For example, Walmart mastered the large-scale “cross-docking” to transfer merchandise directly from inbound trucks to store-bound trucks without storing the good in its distribution centers. Through these innovations, Walmart has been able to save 3-4% on

Walmart has a large retail seafood business and it is always a challenge to reduce cost and promote sustainability. With upward trend for the demand of sea-food, depletion of the seafood supply is inevitable unless Walmart have a deep engagement of their supply chain. One strategy that Walmart wants to promote to their suppliers is for all of them to take up the Marine Stewardship Council’s certification program. This process will be time consuming, expensive and complex. The depletion of some fish poses a threat to Walmart and its seafood supply chain.

A few reasons as to why Wal-Mart became a leader in the retail industry is due to their practices in obtaining competitive advantage by offering the lowest prices for the market. Wal-Mart built their practices by giving suppliers transparency to meet the demand of customers and granting them long-term relationships by purchasing goods in bulks. In addition, their turn times on inventory are three-five days faster than regular competitors. The inventory shelves are similar to Honda since they only hold up to four hours of inventory in their manufacturing site. Also, Wal-Mart holds their own transportation which is why they can manage their costs efficiently for the company. Their transportations system constitutes links between suppliers, distribution centers and retail stores. They have restrictive criteria for drivers where in order for them to be hired they would have to be accident free for a consistency of minimum 300,000 miles accident free. The supply chain practice that they have gained since they began the business was strategically faster and cheaper than all competitors. 85% of Walmart’s inventory is taken care of by their own transportation system and only about fifteen percent is taken care of by the suppliers through cross-docking. Wal-Mart uses

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

Walmart was founded in the year 1962 in Bentonville, Arkansas by Mr. Sam Walton. In its maiden year of operations, the company garnered revenues of $700,000 in sales. In the next 12 years, it made a drastic rise to $ 5.4 million in sales and subsequently crossed $ 1Billion mark in 1980. By the year 2002, the company’s revenues equaled to 2.3% of the GDP of USA, making it the biggest Retailer in the United States, having already overtaken K-mart in 1992 and in 2000. Walmart had a continuous exponential rise since its inception. This year the company reported revenues of $ 478 Billion with gross profit at staggering $ 121 Billion. This graphical representation shows Walmart’s growth in the past decade.

Wal-Mart Stores Inc. helps individuals around the globe spare cash and live better - at whatever time and anyplace - in retail locations, online and through their cell phones. Every week, more than 245 million clients and individuals visit our almost 11,000 stores under 65 flags in 28 nations and e-trade sites in 11 nations. With financial year 2015 net offers of $482.2 billion, Wal-Mart utilizes 2.2 million partners around the world. (Wal-Mart Corporate) Wal-Mart is a superpower in the business world and has been that way for 50+ years. Understanding how it got to this point and how it has maintained its successful business model starts with its

With over US$444 billion in 2012 sales from operations in 27 countries, Wal-Mart Stores, Inc. is the world’s largest retailer. Wal-Mart is the world’s third largest public corporation, according to the Fortune Global 500 list in 2012 and world’s biggest private employer with 2.2 million associates worldwide. Wal-Mart serves customers and members more than 200 million times per week. Wal-Mart operates under 69 different banners. Wal-Mart’s supply chain, a key enabler of its growth from its beginnings in rural Arkansas, has long considered by many to be a