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need help answering the discussion questions 1) How does an individual firm like Walmart manage a supply chain, particularly considering that supply chains include multiple
need help answering the discussion questions
1) How does an individual firm like Walmart manage a supply chain, particularly considering that supply chains include multiple firms with potentially conflicting objectives? Decribe some of the conflicts that could arise in such a circumstance.
2) What are some of the ways that Walmart's supply chain management system has provided it the benefits of higher levels of product availability and lower merchandise acquisition snf transportation costs? Provide specific examples of each benefit.
Walmart has pionecred many innovations in the and distribution processes of the products it CASE 10 Walmart: Pioneer in Supply Chain Management ales rer dominates the retailing indastry in terms of its WALMART'S INNOVATIONS the use of electroaic data interchange (EDD for comput erized ordering from vendors. Its down costs and deliver good vahue to ins customers. After all, the world's largest corporation takes pride in baving than 20 years ago received nomerous sccolades for its ability to cootinu- ously improve efficiency in the its corporate mandate of ofering customers everyday ow bar codes throughout the retail industry; it also pioneered hub-and-spoke distri ring custcomers everyday ko centers around the country and then directed outward to innovations, half the goods trucked to a distribution cen- other half, called "pall stock" is stored at the distribution to stores is less than 48 hours, as well as to replenish bution network ensures goods are brought to distribu through its just-in-time techniqus that allow the firm to thousands of stores, each of which is within a day's travel boast one of the best supply chains in the world, Wlmart use of cross-docking, one of its best-known inventory management is legendary at Walmart tter from suppliers ship to stores within 24 hours. The receive them.center until needed at stores. In addition, Walmart uses a its own supply chain but inflw- enced how vendors throughout the world operate be- canse the company has the economic clout to request changes from its vendor partners and to them. sed for its ability to obtain merchandise from dedicated fleet of trucks to ship goods from warehouses sources, Walmart also pioneered the strategy of ts precision control of manafacturing, inventory, and dis- store inventories about twice a week. Thus, with flow ribution. Although the company is not unicqoe in this goods from its distribution centers to its retail stores levels of growth and profitabs gard, it is by far the most successful and most influentialaround the world. corporation of its kind and has put into practice varioToday, the retail giantcontinues to pash the suppl innovative techniques And when Walmart does something, custone neeshile massive scale. Walmart's computer system, for example, i second oely to that of the Pentagon in storage capacity. Its information systems anahyze more than 10 mallion daily transactions from point-of-sale analysis in real time both internally to its managers and czrernally via a satellite network to Walmart's many spsres. Some c chain toward greater and greener practices. One ofthe early adopters of RFID Walmart discovered the value of balancin in its supply, chain, data and distribute their technology maturity levels after mandating that its ers apply RFID tags to crates and pallets bound for its pliers, who use the information for their peoductin pan Ochers, including Walmart itself, ran into trouble. At the ning and order shipment. has been attributed to the saccess of Walmarts partner- the popalarity of supply chain management and costs for planning, hardware, software, and training ship with Procter & Gambie. During the 1980s, the two were prohibitive for many suppliers. Additionally the planning, forecasting, and replenishment (CPFR) systems, les that might help newoomers avoid pitfalls. Walmart techno one of the first collaborative a sof ware system that linked Walmart's distriba- tioncentersy taking advantage of sdvances in the worlds store sold a particular P&G item, the information flowed es for implementation. Indeed, it lacked any exam- that linked P&Gto Walmart's distiba-repealed its edict, but continues to probe the usefulness of communications infrastructure. When a Walmart falness of RFID tags with apparel the technology. Today, Walmart i slowly testing the use- the inventory level of P&G products ar Walmart's distrtackled eviroomental sustainay in its supol the syntem automatically consumer groups, Walmart the case because of the company's size, bution center got to the point where it nceded to reorder. became a trendsetter for other retailers. After yowing to lerted P&G to ship more prod- ucts. This information helped P&G plan is production. taking nearly 4 million cars off the roads for a yedr, Walmart Walmart was also able to track when a PaG thipment ir. directed its suppliers to think green throughout the fall reduce its greenhouse gas emissions by the equivalent of rived at one of its distribotion warehouses, which enabled Suppbers are required to pay for sastain Both Walmart and P&G realized savings from the better inventory managemens and order processing, savings that relatioeship with Walmaht. Many also re ability efforts-a price most accept willingly to retain their turn were passed on to Walmart's consumers through its cveryday low prices. use will benefit them as energy costs rise. dhacing energy Harnessing energ, increasing recycling, and minimizing packaging and transportation all rduce Ahistory of saccess doesn't mean Walmart can rest. Changes in social values, ecomomic fluctuatioes, ost in the supply chain in addition to technology advances, and other mar mand that Walmart continue its seare In a third innovation, Walmart is corisolidating its global sourcing. The new model focuses on increasing th ways to keep consumer pricesStep by Step Solution
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