Walmart Supply Chain Strategy Case Study

In the year 2009, Fortune Magazine ranked Wal-Mart as first among other retailers in its survey. It is said that Wal-Mart’s extreme success could be attributed to its effective supply chain management.Wal-Mart’s efficiency in supply chain management was due to two key factors namely automated distribution center and the computerized inventory system.This does not blindly mean that they have been ruthless.

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Wal-Mart’s focus has always been to sell goods at a lower price to the customers.

They ensured direct purchase form the companies bypassing the intermediaries. Wal-Mart preferred small vendors to the big players however the vendor who provides the best price qualifies and gets the deal. Their practice these days had been choosing few vendors and they literally negotiate the best price the one that comes up with the best price qualifies.

This happens when vendor and the company work together.

This is the method of supplying the product in the right time and the said quantity. This also changed Wal-Mart’s way of looking things.

When Wal-Mart shared this information P&G could plan in advance and it with its efficient supply chain management could supply pampers to Wal-Mart on time.

Wal-Mart did not want to dedicate lot of space to pamper in its warehouse of shop store either. This led the initiation of working with the vendors and coming out with huge efficiency by maintaining lower inventory and satisfying demand without stock outs.

It means there is no unnecessary storage or little storage in between the loading and unloading of goods so that customer can enjoy the quality of the goods by first hand.

Wal-Mart have logistics infrastructure which is very fast transportation system wherein the distribution centers are being serviced.

This transitioned Wal-Mart from being a centralized management to almost decentralized system took a major turn in focus of pull strategy than a pull strategy.

Cross-docking is one of the techniques used by Wal-Mart.


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