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WU Walmart Providing Customers with The Different Kinds of Goods Discussion

 

Discuss how the integration of Wal-Mart’s supply chain allows Wal-Mart and other organizations to provide competitively superior products and services.

In addition to referencing the Wal-Mart article, include information from at least two additional resources that describe how supply chain integration provides a competitive advantage.

Please comment on this postWal-mart has become the world’s largest and without any doubt most powerful retailer with a large number of sales, inventory, and profit of any discount retailer. Just look at Walmart stock history statistics to see the success and impact it had on the retail grounds. In its transition from regional retailer to global powerhouse, the organization has become identical to the concept of successful supply chain management. And it has done just that. Walmart is the ultimate example of how to leverage supply chain management to reduce costs and optimize the customer experience.

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Even when Walmart began, it’s supply chain management has definitely contributed to its success. The company removed a few of the supply chain links from the beginning. The owner, Sam Walton, opened Walmart and supplied it with bulk merchandise that was selectively purchased and transported to it stores directly (Rubin, 2020).

In the 1980s, Walmart worked directly with manufacturers to efficiently manage the supply chain and cut costs associated with product. The supply chain initiative of Walmart called Vendor Managed Inventory made manufacturers responsible for management of their own products in Walmart warehouses. The end result is a 100% order fulfillment on merchandise. The practice of strategic sourcing to find the products at a reasonable price from suppliers who will ensure demand is met has been long enforced by Walmart. Walmart establishes partnerships with the majority of its vendors to allow for long-term, high-volume purchases with low price association ( Lu, 2018).

Walmart also streamlined the supply chain management process by creating communication and relationships with suppliers to help improve product flow and low inventory. The global suppliers, warehouses, and retail stores act as a single, efficient unit in the supply chain management process. Walmart also implements the practice of cross-docking to replenish inventory at an efficient rate. This process involves the direct transfer of products from inbound or outbound trailers without using extra storage. They unload the items from incoming semi-trucks or railroad car and load the materials directly to outbound transportation, with no storage or wait times (Thu Ha, 2017).