Walmart Value Chain Analysis

875 Words 4 Pages
Value Chain Analysis

Primary Activities:

Logistics:

Wal-Mart comprises of a massive network of 166 distribution centers all over the United States. Roughly 81% of all products are shipped through these distribution centers. These distribution centers are designated depending on the type of merchandise that will be delivered and distributed from each facility type. (MWPVL International) Wal-Mart also maintains a large quantity of corporate owned fleet vehicles along with professionally skilled drivers in order to secure an advantage in delivery services. Merchandise is consistently and efficiently being moved from distribution center to retail store on a daily basis. With the maximization of vehicle capacity
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As a retailer who values their customer’s time and resources, Wal-Mart has developed different ways to provide the customer with various cost saving techniques. They have focused on avenues outside of the typical sales and advertising arena. Wal-Mart offers a price matching program that will honor all competitors and pricing as well as their respective coupons, within certain guidelines. Also available is the savings catcher site that automatically compares purchases with outside retailer’s advertisements and sales simply by scanning a picture of the receipt. (Tech Times) This is a very valuable tool for customers, as it gives them a sense of satisfaction that they are receiving the lowest price possible.

Supply Chain Management:

Wal-Mart excels in supply chain management systems and the ongoing relationships they have with vendors and suppliers. Wal-Mart has been dealing directly with manufactures since the 1980’s. Wal-Mart created a vendor-managed inventory system that made the suppliers responsible for inventory management. The benefits of this system are lowering the risk of oversupply and stockout items.

This type of relationship created the foundation for their collaborative planning, forecasting and replenishment system with their suppliers, giving them a competitive advantage. Wal-Mart’s supply chain management system ensures the best products,
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While offering competitive pay and benefits, Wal-Mart also promotes within to allow upward mobility. Innovative, on the job training along with advancement opportunities creates a positive work environment. Wal-Mart has a non-discrimination policy when hiring new employees. This policy welcomes retired individuals just looking for a little extra income along with veterans who are reintegrating into civilian life. Mentally and physically challenged persons are also employed being giving positions that are suitable for their individual disabilities. This allows opportunities to those who might otherwise not be able to find available employment.

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