Walmart Case Study

1201 Words Mar 16th, 2011 5 Pages
Wal-Mart 's Supply Chain Management Practices
Abstract:
The case examines the supply chain management practices at Wal-Mart, the leading retailer in the world. The case explains in detail how Wal-Mart managed various components of the supply chain including procurement, distribution, logistics and inventory management. It covers how the use of innovative IT tools has helped the company in improving the efficiency of supply chain. The case concludes with a discussion on the benefits reaped by Wal-Mart due to its efficient and effective supply chain management system. | |
Issues:
» Understand the importance of an efficient distribution and logistics management system in not only reducing the costs for a retailing company but also in
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Customers could buy goods at wholesale prices by becoming members and paying a nominal membership fee. By 1984, there were 640 Wal-Mart stores in the US, generating sales of about $4.5 bn and accruing profit of over $200 mn.

Wal-Mart suffered a setback in 1992, when Walton died after a prolonged illness. But it continued its impressive growth in the 1990s, focusing more on establishing its stores overseas. In 1992, Wal-Mart expanded its operations in Mexico by entering into a joint venture with Cifra
Two years later, the company acquired 122 Woolco stores from Woolworth, Canada. By 1997, Wal-Mart had become the largest volume discount retailer in Canada and Mexico. In 1997, Wal-Mart acquired the 21-store German hypermarket chain, Wertkauf. Other international expansion efforts included the purchase of Brazilian retailer Lojas Americans ' 40 percent interest in their joint venture, and the acquisition of four stores and additional sites in South Korea from Korea Makro. In January 1999, Wal-Mart expanded its German operations by buying 74 stores of the hypermarket chain,

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