One of the strategies that Walmart has practiced is strategic sourcing. Walmart used strategic sourcing to get its products from suppliers at the best price. These suppliers were in a position to meet Walmart’s product demand. Also, Walmart got lower prices from their vendors after they partnered with them for potential long term and high product purchases. To streamline its supply chain, Walmart constructed a good relationship and communication with their suppliers, hence improving the flow of materials and lowering the catalogs. The main aim of partnering with their suppliers was for collaboration, which played an important role in their supply chain success.
Similarly, Walmart looks to expand its distribution centers. Expansions of distribution centers are to build up to date distribution centers at a central area. These new stores are built at low costs with the savings extended to customers (Lu, 2018). Therefore, customer service will be improved and increase their satisfaction. Moreover, the cost of operation is reduced.
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Also, Walmart has cut transaction costs by introducing data interchange with its suppliers. Electronic data interchange is electronic links, which also allows Walmart to coordinate and control product delivery scheduling and receiving. The scheduling is of the right products, and delivery is on time to the proper distribution centers (Tan et al., 2010). Another innovative system to Walmart’s supply chain is the combination of a warehouse and a store in a pone facility, thus, having an efficient operation. This combination is known as the big box store system (Hugos, 2020). Besides, Walmart’s supply chain management operates in advanced technology ever for great efficiency. This has helped to develop ways to distribute products and manage their catalogs electronically to satisfy customers’ needs by knowing what products they need and when they need them. Walmart’s products are at a low price as these innovations help save on cost (Jawad, 2017). Therefore, every customer will take note of Walmart’s greatness.
References
Jawad, S. (2017). A literature analysis of Walmart’s supply chain excellence in terms of integration, distribution, and operations . https://www.theseus.fi/bitstream/handle/10024/133063/Jawad_Stevan.pdf?sequence=2 .
Lu, C. (2018). Walmart’s successful supply chain management . Inventory Management Software. https://www.tradegecko.com/blog/supply-chain-management/incredibly-successful-supply-chain-management-walmart.
Tan, K. C., Kannan, V. R., Hsu, C. C., & Leong, G. K. (2010, June 15). Supply chain information and relational alignments: mediators of EDI on firm performance . International Journal of Physical Distribution & Logistics Management. https://www.emerald.com/insight/content/doi/10.1108/09600031011052831/full/html .
Hugos, Michael. (2020, March 17). Key Supply Chain Practices from Walmart . SCM Globe. https://www.scmglobe.com/key-supply-chain-practices-from-walmart/.
