Walmart Case Study Analysis Essay
Distribution is arguably the most effective aspect in Wal-Mart’s supply chain. The distribution is imperative to the firm because it wants to ensure that there is as much in-stock availability as possible. The first and main distribution center for Wal-Mart is located in Bentonville, Arkansas. A benefit Wal-Mart has is that the company has great power over its 40,000 suppliers (out of these 40,000, 200 are key suppliers), and soon after the opening of the distribution center in Bentonville, suppliers located nearby to support the company.
Each store that was opened was directly because of the distribution strategy—the criteria for stores’ locations were that it should be low rent, suburban area, and on or very close to a highway. This keeps the costs low and distribution much more easily possible. This was a great strategy to have because, as Wal-Mart became more and more prevalent in the industry throughout the 1980s, “By the time the rest of the retail industry started to take notice of Wal-Mart… it