preview

Walmart Cross Docking Essay

Good Essays
Walmart is the largest retail store in the world. Walmart has been leading in the industry due to their outstanding distribution strategy which allows them to carry out the promises they make to their customers. Walmart uses the slogan “Save Money. Live Better” which is something they can guarantee. Walmart has a reputation of having the lowest prices in retail sales. Walmart uses a rather simple yet extremely effective tactic while handling distribution. This gives them an upper hand in the competitive market, keeping their status as the largest retailer in the world. Generally, suppliers to retailer have monumental supply chain with little room for change. Companies account stronger for customer needs, depleting the cost of efficiency.…show more content…
They use a strategy known as cross docking. Cross docking is the process of unloading materials from an incoming truck or trailer, then loading these materials directly onto outbound trucks, delivering the good directly to customers. This creates a remarkably proficient supply chain, of delivering manufactured goods to customers at a much faster pace. Supply chain managers are the group of employees responsible for the process of delivering a good down the chain from manufacturer, to intermediaries, to retailers, to consumers. The cross docking process excludes a few steps, raising Walmart’s efficacy levels way above that of their competitors. Cross docking goes right from the manufacturer or supplier directly to the consumer, eliminating the distribution center and retail store. The only way to make this possible was to promise specific delivery times, and upholding these promises. This method has proven very beneficial in Walmart’s sales and is another reason why so many consumers stay loyal to company. The process of cross docking lead to centralized decision control of merchandising, pricing and promotions, shifting from corporate levels, causing the supply chain into a demand chain. Customers now pulled their goods when needed, as opposed to retail stores pushing the good on potential buyers. When these customers pull an abundance of a specific goods, Walmart unlike any of its…show more content…
The remaining twenty percent of merchandise was shipped directly to stores from suppliers. Walmart owns and runs: forty general merchandise distribution centers, thirty-eight grocery distribution centers, seven apparel and shoe distribution centers, twelve professional service and specialty distribution centers, two import distribution centers, and three online distribution centers. Internationally, Walmart owns one-hundred-and-twenty-six distribution facilities around the world. These distribution centers help to keep Walmart’s logistic infrastructure in place. Walmart’s main goal is a fast and responsive transportation team. They have over 6,110 tractors, 61,000 trailers and 7,800 drivers. To keep their fast and responsive transportation system going Walmart offers many benefits to their drivers, but they also have strict rules they must follow. Each driver must have 300,000 accident free miles and no major traffic violation prior to being hired. In return the drivers have many opportunities to use the distribution centers to their advantage. At each distribution center there are restrooms to take care of personal hygiene, including showers. They also have food, and sleep areas, as well as personal business provisions at each distribution center. Walmart has a high demand for drivers so they make ideal work conditions in hope of