The raw material suppliers transport the inputs to Walmart’s manufacturing facilities in China through a third party logistics company. These manufactured products are now shipped to the warehouses in the United States and then to the Distribution Centers (DC). In less than 48 hours, the merchandise gets shipped to the door of the customer instead of going to the retail stores. There is also an option if the customer chooses to ship their product to the store, with over 17,000 retail stores to choose from. At the same time, vendors work in close communication with retail stores as they ship product to the retail stores when product is demanded to stock the shelves. This immaculately …show more content…
The Retail Link System houses information of inventory levels at retail stores, sending the information to the Satellite and to the vendors to give information such as live quotes, and current inventory levels. Using VMI, suppliers can refill the merchandise without waiting for the customer’s orders or approval. It has been beneficial for many companies because it improves the companies’ supply chain by working directly with the Walmart Supply Chain manufactures. The supplier can do one of two things when they are using VMI. The first one being that suppliers can monitor the customer's inventory using their own employees. The second one is that suppliers receive stock data from the customer through the information received from the Electronic Data Interchange (The Business Dictionary). Walmart has now worked with more than 3000 suppliers (Walmart’s Supplier Diversity Program) which are both local or are located in other states or countries. This method has helped Walmart suppliers, warehouses and retail stores work as a single company. Not only that but VMI has also helped Walmart to have a manageable method of performance and lower the merchandise cost, while having the product at the right place at the right moment. (Walmart’s Supplier Diversity