Walmart Supply Chain Management Case Study

994 Words4 Pages
Supply change management refers to managing materials and processes as they move from the suppliers of raw materials to manufacturers to wholesalers to retailers and finally to the customers. It involves managing the supply-side activities to gain competitive advantage and to increase customer value. It also involves coordination among different firms at different levels within the supply chain. A good supply chain management should be both economical and efficient. Supply chain management manages and controls the production, shipment or movement of products and their distribution processes. It consists of various aspects of a business including production, product development, and information systems required to manage the supply and distribution…show more content…
Their network of suppliers helps them satisfy the needs of hundreds of millions of customers each week with responsibly produced products and services. Walmart’s supply chain comprises of about 100,000 suppliers and millions of workers. Most of the goods sold at Walmart come from China which supplies 70% of Walmart’s inventories through nearly 30,000 factories. The company focuses on globalization which has resulted in economies of scale because of which they are able to deliver their products and services at comparatively lower costs than their competitors. Due to their enormous buying power and low cost operations, they are able to price their products at the same level as their competitors’, but are able to make higher profits while doing so. However, it is extremely difficult for a company of that size if it does not have a proper supply chain management process in place. Walmart employs a unique supply chain management strategy to stay competitive in the industry. As shown in the video, they use high-end technologies to manage their sales and inventory levels. They keep track of the products that are in high demand so that they can manage their inventory accordingly. Also, they have well developed systems that determine which products are the early sellers so that they can create a product backlog. Data centers at Walmart track every item that is sold everyday and the information is fed to the ordering…show more content…
It explains how retail businesses like Walmart source their products from different parts of the world and how these products flow through different channels of the supply chain before they reach the hands of the customers. A good supply chain management process is where all the companies that are involved play an active role in getting the products from the suppliers to its manufacturers to wholesalers to retailers and finally to the consumers. Supply chain management is an intense process in which products are sourced, made, and delivered by the firms involved so that we, as customers, can enjoy those products. Without a good supply chain management system, a company would not be able to manufacture its products efficiently or distribute the finished goods to its customers. Thus, the execution of an effective supply chain strategy helps a firm create value and gain a competitive edge in the

More about Walmart Supply Chain Management Case Study

Open Document