Walmart Supply Chain Management Analysis

1133 Words 5 Pages
In this paper I will examine the important role that information systems play in SCM giving relative examples to retail giant Walmart. It can be asserted that in order for an organisation to have an effective supply chain management system in place, information systems that are implemented must be must be effective and suitable to the purpose of their use. Furthermore Hugos coins this idea and states that “the effective use of technology is a key aspect to a company’s success” (Hugos, 2011, p.110) Implementing effective supply chain management systems within an organisation can be seen to lead to competitive advantage within the market. Sadraoui and Mchirgui (2014) echo the above in their journal where they state “SCM has been considered as …show more content…
Furthermore she emphasises that Walmart put a massive focus on developing cost structures that allowed it to offer low everyday pricing to its customers. This was achieved by implementing a mammoth purchasing strategy where goods were purchased directly from suppliers at a reduced cost. Walmart then concentrated on developing a more highly structured and advanced supply chain management strategy to exploit and enhance its competitive advantage and retain and advance their market leadership position. (Lu, …show more content…
By ensuring it has various distribution centres around store locations ensures all stores are adequately stocked in the least amount of time. The implementation of information sharing with suppliers and the use of vendor-managed inventory also many advantages for Walmart. By using these strategies for SCM has enabled the retail giant to always have shelves adequately stocked and meet customer’s needs, and intern it can be asserted that this maintains customer satisfaction and loyalty to the orgainisation. The approaches Walmart take to SCM has major benefits to both its customers and the business itself. Having an effective SCM system in place can reduce costs and either maintain or improve profit levels for the organisation as a whole as seen in Walmart. Accordingly, the approach Walmart takes to business has led to maintaining competitive advantage over other retail outlets in the supermarket market. This is mirrored in Lu’s (2016) report where it’s stated that “Over the past ten years, Walmart has become the world’s largest and arguably most powerful retailer with the highest sales per square foot, inventory turnover, and operating profit of any discount retailer”. (Lu,

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