Evolution Of Wal Mart 's Supply Chain Essay

713 Words 3 Pages
Walmart began with the goal to provide customers with the goods they wanted whenever and wherever they wanted them and focused on developing cost structures that allowed it to offer low everyday pricing therefore they concentrated on developing a highly structured and advanced supply chain management strategy to exploit and enhance this competitive advantage and assume market leadership position. The evolution of Wal-Mart’s supply chain includes three elements: distribution practices, transportation and technology, a reduced chain than traditional supply chains (according to a 2012 Arkansas business article). By removing a few of the chain’s links, Wal-Mart was able yield lower costs for products and inventory, better control over selection in its stores and the ultimate result of lower prices that can be passed to customers (Trade Gecko)
Distribution
In the US, Wal-Mart has158 distribution centres with a fleet of 6,500 tractors, 55,000 trailers and more than 7,000 drivers (Website). At their distribution centres products are delivered and then distributed to retail Wal-Mart stores (Ehring 1). By having their own distribution centre Wal-Mart cut inventories, warehouse spaces, and reduced costs and cycle times which led to “space and inventory reductions effectiveness” (Chan and Lee 6). The logistic system in Wal-Mart is based on a faster, more responsive transportation system where they use cross docking and work with suppliers to standardize the case size and labelling. By…

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