Walmart : Supply Chain Management

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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 the cost advantage to lower down prices even more than they were. After he did this he could then turn around and increase his volume in a product. 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…show more content…
Target and Kmart and other business alike were forced to try and compete against Walmart’s highly competitive pricing. Walmart then wanted to come up with a better structure for a more advance supply chain management strategy, because they had the competitive advantage and wanted to make even more money while still able to have a low cost to the customers. Walmart focus on cost all along turned out to be the right thing to focus on. Their focus on costs turned to logistics, and Walmart definitely had the lead in using technology. This allowed Walmart to developed different logistics structures to drive down the costs, years earlier than Target, Kmart and everyone else in the business.
The supply chain management that Walmart used, had many different elements and stages to it. Some of these stages included the purchasing, operations, distribution, and integration. This supply chain management process begins usually with purchasing. The purchasing managers of companies or sometimes the buyers are responsible for determining which products and services their company will sell or are in the need for. The mangers or buyers will then use a strategy for obtaining the products at the best price from the suppliers. Then the managers or buyers will then discuss and come to an agreement which is profitable to all that is

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