Walmart's Supply Chain And Their Supplier Quality

Walmart has literally invented efficient customer response systems that enable it to maintain its low-cost leadership strategy for its physical stores, re-creating a different or separate logistics supply chain is proving difficult and expensive. Walmart has not been that involved in online shopping but now it’s being forced to increase its Internet presence based on Amazon’s success. Walmart has literally invented efficient customer response systems that enable it to maintain its low-cost leadership strategy for its physical stores, re-creating a different or separate logistics supply chain is proving difficult and expensive

Wal-Mart is one of the most successful companies in the world, making millions of dollars per year. They are successful in many ways, but because of that they have many flaws. Their products are low price, which means that they’re made for cheap, which

Walmart claims that its mission is centered on helping people live better which not only applies to customers and associates, but also to the workers who make their products. Furthermore, all the products that Walmart offers to its customers are supposedly verified whether they are produced with dignity and respect for workers. In order to be accepted as Walmart’s supplier there are standards and obligations expected from suppliers. Following section examines closely what are the key standards that according to Walmart prevail within its global supply chain (Walmart, 2012).

Wal-Mart was known for its excellent supply chain management. Wal-mart grew in the 1960s to 1980s and benefited from improved road infrastructure and the inability of its competitors to keep up to changes in legislation. The main change was the removal of “resale price maintenance,” which had prevented retailers from discounting merchandise. A strong and efficient supply chain is the key to distribution and keeping their customers satisfied with the promise of “Everyday Low Prices.” Things within the supply chain in which Wal-Mart excelled at would include logistics, purchasing, retail decisions, and limiting the overall bullwhip effect of the supply chain.

Being such a large company with many stores and employees Wal-Mart faces many issues. Some of the issues the retail giant faces are; wages, gender discrimination, and health benefits. It seems too many that Wal-Marts has lost its way. When the recession hit Wal-Mart laid off many of its employees and because of that consumers feel the shelves are not being restock and they can’t find what they are looking for. According to Bloomberg Business Week Wal-Mart went from having 343 employees in a store in 2008 to 301 employees in a store in 2013. Even though the employee cut seems logical it is costing the retail giant business. There is no man power to keep the shelves stock and give customers the great customer service that Sam Walton envisioned. (Bloomberbusinessweek)

Although many may think of Wal-Mart has many good aspects, it also has its flaws. Wal-Mart’s low wages, cause for closing business, jobs that were taken away, and lack of union support.

Wal-Mart, the largest private employer in the globe and the third among the largest corporations in the world, is known to apply a wide range of logistic and supply chain techniques in meeting the dynamic demands from their clients. Additionally, the need to stay at the top in the world of business has made this concept mandatory for the multinational organization. Wal-mart, in its drive to achieve these ends has presented a number of implications, not only to the organization but also to its clients and the society at large (Fishman, 2006). Various positive attributes, say the history of the corporation, its application of information technology and computerized systems and the culture of the organization has, to a great extent catapulted the organization to great heights (Keil & Spector, 2005). Other attributed that have been of help to the organization and its client base include the corporation's strong global marketing procedures, practical distribution networks and strategic geographical locations just to mention but a few. On the negative side of the corporations activities and performance include the likes of rapacious pricing, poor labour and employees relations and poor working conditions among others.

They have the capabilities to get things done and garner material resources”. ( ) With this power comes abuse which can bring problems for both staff and consumers. One of the many problems facing Walmart these days is the allegations and lawsuits of their labor practices and how they treat their workers. Fishman talks about how “managers would routinely forced hourly employees to punch out at the clock, then return to work, putting in hours for unpaid labor”. (Fishman pg. 27) This would be a problem for staff more specifically inequality of being paid for work put in. Another problem facing them which could be a problem for the consumer would be how Walmart in October of 2003 “federal agents raided sixty Walmarts in twenty-one states in a single day before dawn, arresting 245 illegal aliens who were cleaning stores over night as employee subcontractors”. (Fishman pg. 48) Walmart denied any allegations of knowing about it but, paid the federal government $11 million dollars in 2005 showing once again the reach that there power

Wal-mart has seen itself become a retail giant over the past decades. They have an enormous amount of control over both consumers and suppliers. Brands literally sacrifice profit margins to have shelf space within their stores. With the addition of grocery brands as well, Wal-mart has positioned itself as a “one-stop” destination for all consumer’s needs. However, there are various internal and external factors that affect the four functions of Management positively or negatively. Organizations need to pay close attention to these factors because it can enhance the company’s success when used appropriately. Currently several factors are top of mind for management. They need to be concerned with in this era are globalization, new technologies, innovation, diversity, and ethics. Wal-mart is a big player in the nation and global market and must stay reactive to these internal and external factors to stay on top. Wal-mart is addressing each of these issues directly.

Customers are at the core of our success and must be treated with respect. Every customer. Every situation. Every day. Wal-Mart’s reputation is important to the Company 's long-term success. For this reason, every employee is obligated to:

‘The nerve center of what makes Walmart work on a day to day basis is its Information Systems Division (ISD), which sets a high bar for innovation, delivering solutions, and streamlining operations. Walmart’s global advantage comes from maintaining low expenses, and ISD’s cutting edge solutions play a big part’. There are six departments that make up Walmart’s ISD, which include Customer Planning and Analysis, Application Development, Security and Compliance, Infrastructure, Strategic Services, and Enterprise Information Management. Combined, these departments make Walmart’s ISD adaptable, agile, and able to maintain its role as a worldwide leader in retail. Walmart’s ISD has approximately 3,000 associates that work in the very structured and formal David Glass Technology Center located in Bentonville, Arkansas. One of the keys to the success of huge retail chains such as Walmart has been the advancement of

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

With every company there come strengths, weaknesses, opportunities, and threats and Wal-mart is no exception. Wal-mart sits at the number one spot when it comes to retail businesses but they have had many issues; in particular labor law violations because they did not allow their employees to take required lunch and meal breaks.

The value proposition of Walmart was “every day low price” and “excellent customer service”. But unfortunately,