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Walmart And Supply Chain Management Essay

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The company I think that has been successful at transforming its business practices related to supply chain management is Walmart. In 1962, the first Walmart was open, so was Target and Kmart. Sam Walton was the founder of Walmart. Mr. Walton was known for his ways of being cheap in business and in his personal life. Walmart was mainly a success because of Mr. Walton’s wanted to keep costs low and then use cost advantage to lower down prices to increase volume. It went round and round and now, Walmart stands as one of the largest retail stores globally. Within the last ten years, Walmart has become one of the world’s largest retailer stores. Walmart sells a wide variety of things such as; clothing, household cleaning products, animal supplies and groceries. Walmart has a high inventory turnover as well as an operating profit, Walmart stands to be number one even against Kmart and Target. Walmart learned how to use supply management effetely and by doing so, Walmart went from regional to global. Walton, had a goal for Walmart, he wanted to provide his customers with the goods they wanted at a low price. Under a Walmart’s supply chain initiative called Vendor Managed Inventory (VMI), the manufacturers that Walmart used, than became responsible for managing their own products inside of Walmart’s warehouses. By doing this, Walmart was able to expect closer to a 100% of the orders to be fulfilled on merchandise at a lower cost to the customers. Walton, then focused on developing

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