Walmart as a multinational retail corporations buys goods and services in large quantities and later resell them to customers, and smaller retails. Walmart has many department and divisions which require the supply of goods and services from suppliers. Walmart has contracted suppliers, subcontractors, primary to tertiary suppliers to ensure supply of quality products, materials, and services (LeCavalier, 2016). The goods and services provided from outside include:
Services
Walmart benefits from the supply of various functions such technology to serve its active social media and e-commerce platform such as Facebook which requires supply of technical devices, software and data management tools which are solicited from outside suppliers and developers. Other services include security of premises and products, antitheft tagging for high priced products, insurance, legal services (LeCavalier, 2016).
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Products
Walmart requires ample supplies of products to meets its customers’ demands, needs, and preferences which include health and wellness products such as drugs and prescription products for over the counter drugs, dietary and nutritional supplements and vitamins (LeCavalier, 2016). They also outsource cosmetics and personal care products for hair, body, and beauty. Walmart has contracts with suppliers for food and nonfood products. Food includes are consumables vegetables and fruits. Other nonfood products such as electronics, entertainment products, household goods which as imported through their import center for redistribution (LeCavalier, 2016).
Requests for information, request for quotation, and demand for proposals are documents used to obtain business responses from the various suppliers available to a business enterprise.
Request for Information (RFI)
The document is used to find solutions to hidden problems to business problems by seeking data and understanding (Eden-Ellis, 2016).They represent documents used to gather information and work with a supplier for a precise definition of a problem, finding external help to resolve the issue and provide a study of all the proposed solutions (Min, 2015). FI is used to gather information, build a database. And develop strategies for business negotiations on prices, market supply dynamics, trends, competition, products, services and plans of a supplier.
Request for Quotation (RFQ )
It refers to a document used by an organization to the supplier to obtain information on pricing, delivery, the business terms and conditions and other necessary information (Eden-Ellis, 2016). The material is sent to potential suppliers to provide details and description of expectations for the purchase (Min, 2015). RFQ is used to assess that the supplier can meet defined requirements and specifications within the allocated time.
Request for Proposal (RFP)
It refers to documents sent to potential suppliers with whom an organization considers a relationship or partnership. It includes short and long-term objectives and negotiation strategies in which the supplies are required to respond (Eden-Ellis, 2016). RFP seeks specified data on business requirements, performance, products, ideas, cost breakdown. It is used to assess quality, service, or reputation offering specific information on what the company wishes to purchase. It encourages the supplier to put effort to deliver the proposed products or services.
Walmart as a multinational company dealing with different goods and services and with a vast base of suppliers requires the use of all the requests for quotations, proposals, and information (Eden-Ellis, 2016). Before procuring goods, Walmart finds it necessary to obtain suppliers information on types of products, availability terms for delivery, quality and the reputation of a supplier concerning promptness and cost in the market (Min, 2015). Walmart needs to use all the requests to ensure that it obtains the best supplier which is achieved through the request of information from different suppliers (LeCavalier, 2016). For comparisons and negotiations on costs quality and delivery an RFQ will be necessary and an RFP for the qualified firms which Walmart wishes to conduct business with and supplier favorable terms for trade.
References
Eden-Ellis, M. (2016). Business Bid and Tender Writing for Dummies . John Wiley & Sons.
LeCavalier, J. (2016). The Rule of Logistics: Walmart and the Architecture of Fulfillment . Minneapolis: University of Minnesota Press.
Min, H. (2015). The essentials of supply chain management: New business concepts and applications . [ New York, NY]: Pearson Education Ltd .
