Walmart is a leading global retailer with operations in different countries around the world. The company was incorporated in 1969 and operates in three segments which are the U.S, international and Sam’s Club. The company helps people around the world to save their money and live better. The company creates a customer-centric experience that integrates physical and digital shopping. The company has physical and digital retail which include the brick and mortar, e-commerce websites as well as mobile applications. It serves about 260 million customers each week who visit its 11,500 stores in 28 countries and e-commerce platform in 11 countries. The company has continued to compete on quality products using its everyday low-cost pricing strategy. Its strategy is to differentiate on access, lead on price, to be competitive and to deliver a great experience. It earns the trust of its customers by delivering a broad assortment of quality merchandise which includes grocery, health and wellness, entertainment, hardiness apparel, and homes.
According to the company’s annual report (2017), Walmart shipped approximately 79% of the U.S segment merchandise through its 137 distribution outlets which are located all over the country and 77% of international purchases in 176 distribution facilities. The remainder of the merchandise was shipped directly from suppliers. The private truck fleet for the segment is used to transport the general and dry merchandise. The company, however, contracts common carriers to deliver the majority of the perishable grocery merchandise.
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Walmart uses a global supply chain that consists of over 100,000 suppliers located in all the markets that the company serves. It purchases merchandise from companies located near its stores and clubs. The company purchases huge volumes which can constitute a significant amount of annual sales to the supplier. The huge volumes acquired allow it to get favorable prices. The suppliers must comply with the standards of conduct and other requirements that apply to individual countries. The ability to acquire from the suppliers the required supplies and of the right volume and receiving the products in its supply chain on time and distributing the products to its stores and clubs has helped to determine the level of in stock and the attractiveness of the assortment offered to the customer. It is for this reason that Walmart has generated a strong interest leading to its selection. Its ability to manage the global supply chain and the size of its market makes it one of the most successful companies in the world having appeared severally in Forbes top 500 list of companies.
