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
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Its state-of-the-art technology and network design allow Walmart to accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships and service response logistics.
For example, Walmart was the first company to use Universal Product Code bar codes that stores level information, which is instantly collected and analysed through Wal-Mart’s personal satellite system, Retail Link. This allows analysts to forecast supplier demands as they have access to real-time sales data from cash registers and to Wal-Mart’s distribution centres. Even more recently, the company has begun using smart tags, read by a handheld scanner, that allow employees to quickly learn which items need to be replaced so that shelves are consistently stocked Wal-Mart has invested tens of millions of dollars in “companywide computer system linking cash registers to headquarter enabling to quickly restock goods selling off the shelves, and also in truck and distribution centres” (Ehring …show more content…
For example it entered into collaboration with P&G for maintaining the inventory in its stores and built an automated re-ordering system, which linked all computers between P&G factory through a satellite communication system. This information sharing allowed each corporation to better under each other’s markets and eliminated the bullwhip effect using strategic fit. Overall, the communication through information sharing allowed for better execution of every step in the supply chain. Under a Walmart’s supply chain initiative called Vendor Managed Inventory (VMI), manufacturers became responsible for managing their products in Walmart’s warehouses. As a result, Walmart was able to expect close to 100% order fulfilment on
Its state-of-the-art technology and network design allow Walmart to accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships and service response logistics.
For example, Walmart was the first company to use Universal Product Code bar codes that stores level information, which is instantly collected and analysed through Wal-Mart’s personal satellite system, Retail Link. This allows analysts to forecast supplier demands as they have access to real-time sales data from cash registers and to Wal-Mart’s distribution centres. Even more recently, the company has begun using smart tags, read by a handheld scanner, that allow employees to quickly learn which items need to be replaced so that shelves are consistently stocked Wal-Mart has invested tens of millions of dollars in “companywide computer system linking cash registers to headquarter enabling to quickly restock goods selling off the shelves, and also in truck and distribution centres” (Ehring …show more content…
For example it entered into collaboration with P&G for maintaining the inventory in its stores and built an automated re-ordering system, which linked all computers between P&G factory through a satellite communication system. This information sharing allowed each corporation to better under each other’s markets and eliminated the bullwhip effect using strategic fit. Overall, the communication through information sharing allowed for better execution of every step in the supply chain. Under a Walmart’s supply chain initiative called Vendor Managed Inventory (VMI), manufacturers became responsible for managing their products in Walmart’s warehouses. As a result, Walmart was able to expect close to 100% order fulfilment on