Walmart : A Efficient Supply Chain System

924 WordsMay 1, 20164 Pages
By 1990, Walmart had opened stores in 32 states and became the nation 's #1 retailer in both total sales and profit (http://corporate.walmart.com/our-story/our-history). Walmart’s business has largely matured. Besides its large scale in consumer product purchasing, Walmart also holds four key sources that give it a competitive advantage. First, Walmart has a highly advanced and efficient supply chain system. Walmart built a vendor-managed inventory system to manage its warehouses and its distribution centers are strategically located in order to ensure timely deliver of its products. Second, Walmart minimized its operational costs. Walmart built stores in small rural towns in the early years, and then concentrated on expansion once name recognition had been achieved. This significantly decreased the payroll and rent cost. Third, Walmart had sufficient Human Resources (HR) management. Walmart shared profit with associates in the form of salaries, bonuses, discounted stock, and information in contrast to other retailers. Lastly, Walmart developed an advanced information technology system. Walmart developed its own information system to help it manage all stores and distribution centers remotely by collecting and analyzing data in a timely fashion. As a result, Walmart garnered the capability to expand its market with dramatic cost savings improving profits and enabling continued growth of Walmart stock. Considering alignment with its competitive advantages, Walmart

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