Strategic Supply Chain Management and Logistics of Wal Mart

Question: Discuss about the Strategic Supply Chain Management and Logistics of Wal Mart. Answer: Introduction Today, all successful companies are reaching out other markets in other countries or beyond boundaries. While doing business, the most crucial aspect of a company is related with the supply and distribution of raw material and finished goods in the target market effectively and efficiently. Thus, implementation of strategic and strong supply chain management and logistics is very vital in any organization (Leeman, 2010). This management is related with the planning, scheming, controlling and implementation of all business functions associated with the acquisition, manufacturing, dispersion and merchandising of products and services. In this study, significance and execution of effective supply chain management has been discussed. Along with this, integration of information technology to improve and benefit supply chain management are also been illustrated. The company is Wal- Mart to report and outline all the supply chain management and logistic aspects of a company. Moreover, effective logistic and procurement management plus strategy to improve supply chain management have also been represented. Wal-Mart is the largest and most prestigious supermarket in retailing industry in the world. Besides this, supply chain management is the backbone of any organisation that provides resources with low cost management (Brunn, 2006). It is just like nutrition to the company as it helps the company in operating and functioning of its business smoothly with financial benefits. Wal-Mart is based on the rebate retailing and opens up huge warehouse style supermarkets to save costs. It is also known as discounted city because of their supply chain management, they re able to operate their stores economically plus their self distribution management and transportation by trucks and deployment of RFIDS and bar codes to track their products with the suppliers are very efficient and effective (Coyle, 2012). This provides environment to a company to achieve its targeted goals in the market conveniently. In addition to this, an effective supply china management enable a company to reduce its supply chain cost as well as risk of costly breakdowns. Strategic supply chain management also ensures sufficient resources for the company with its extra money (Dyckhoff, et al., 2004). Moreover, it helps in improving the operational management due to which all the functions of the company carried out effectively. It also reduces the delivery time of the company that ultimately augments the experience of the customers and increases satisfaction among them. Supply Chain Management and Business Function Affiliation Wal-Mart supply chain management is very strong which assists it in other functions of the business such as purchasing of products from the wholesalers and suppliers, impressive inventory management like distribution, tracking, recording and availability of products on time. Furthermore, supply chain management integrated with information technology helps Wal-Mart in all other business function such as marketing and sales department to reach the target market and effective sales management in financial department (Hugos, 2010). Moreover, the strategic supply china management also aids in engineering department and human resource department. Wal-Mart also benefited in productive manufacturing system that cuts costs as well as improves the quality of the goods. Hence, it can be seen visibly that business functions are coordinated and efficaciously operated with the supply chain management. Wal-Mart persistently uses supply chain management to increase its market share and to survive or take competitive advantage over other competitors. Powerful supply chain management increases the skills and process experience of a company. Wal-Mart is emphasising in strengthening its supply china management over general business strategies (Rushton, et al., 2007). Thus, it can be depicted that supply chain management is based on the outlook of the company and its management team whether they are taking it as competitive advantage and very important part to perform business functions or not (Hugos, 2010). Moreover, is company able to outsource its supply chain management plus what are the resources company has that can give positive privilege to the supply chain of the company. It is also based on the factors that how company reacts to achieve its customers services, growth and profitability (Rushton, et al., 2007). Some of the key drivers that improve the supply chain management of Wal-Mart are customer services management process and procurement process. Customer service management is related to the customer experience and satisfaction because of services and products provided by the company. Procurement is the relationship of suppliers with the company that affects the product quality and cost management of the company. Building a strong relationship with the customer as well as suppliers is very important in this regards. Relationship management with suppliers via Strategies Wal-Mart advanced performance is based on the strong connections and longevity of the suppliers that helps any manufacturing in its growth. Information exchange between the suppliers and the company through RFIDS and bar codes are the strategy to coherence and articulate the relation between suppliers, wholesalers and Wal-Mart (Bidgoli, 2010). Its supply chain management is also famous for Just-In-Time delivery of the products. They are also precocious in sourcing their suppliers and easy relationship management with the suppliers. This provides various advantages to the company at the crucial or adverse time of companies. Besides that, many researches in manufacturing companies have shown that modern relationship management with suppliers are superior over the tradition price driven management of suppliers. Wal-Mart adopted some of the very effective and advanced technologies that bestowed it with easy and clear management of the company with supply chain management such as Collaborative Planning, Forecasting and Replenishment (CPRF) and Vendor Management Inventory (VMI) in its sales force (Bidgoli, 2010). It helps them in providing the product requirement from the market and objective to the manufacturing resource planning department to work accordingly. It also strengthens their inventory control management by effective co-ordination between suppliers and distributors. Filling stock on time, recording and crisis management is also being handled with ease due to integration of information technology. Wal-Mart satellite network is very advanced that appends transactions at the time of sale and sent massages to its management team quite easily. The software system incorporation in business processes has enabled companies in accurate accounting and recording of the data and transactions (Roberts and Berg, 2012). Due to information technological incorporation Just-In-Time manufacturing practices are also being implemented appropriately in Wal-Mart. Suppliers demand is also watched in the company by global satellite system, Retail Link which enables company to analyse and forecast suppliers demand. It is connected with suppliers network and provides real time sales data to distribution centres and cash counters. Create System for Supplier Relationship Management Supplier and buyer relationship is a vital aspect in the cost cutting and it also indirectly related with the customers satisfaction, customers gets qualitative goods in time as a result of good relationship with the suppliers (Hugos, 2010). Thus, this relationship needs a considerable focus to amplify the coordination and healthy relationship between suppliers and buyers. Some of the information system that helps the company in proper supplier relationship management is articulation of real time information associated with orders and market trends. Moreover, change in demand is also being forecasted and treated in time will help the company (Mangan, et al., 2008.). Supply information is being hatched and handled timely. Inventory systems that help in predicting the market need and communication and collaboration through internet with the suppliers to share massages and informations. Enterprise Resource System is integrated in the supply management system of Wal-Mart that embroils programming of entire business regarding suppliers such as placing order, tracking orders, receiving details and issue of invoices and bills. Along with this, online analytical processing system helps a company to predict on sales performance from different suppliers by analysing the history of the supplier. Wal-Mart uses integration information system in the supply chain management to mainly carry its operations with effective and coherent knowledge management between the stakeholders and management of the company. Persuasive knowledge management is the success key of Wal-Mart. Furthermore, Wal-Mart uses its advanced technologies in every part of the company for a flexible but accurate communication (Myerson, 2012.). Using Transactional Process System, the company ensures the timely and accurate billing, payroll and point-of-sale in the company which also entails the use of universal bar code with incorporating satellite system and electronic scanning of uniform product code for better knowledge management. It also helps in potent merchandising and inventory control. Next is Management Information System (MIS) that provides correct performance report of the company improves the security, tracking and business to business transaction of the company (Sukati, et al., 2012). Last is DSS that is related with the data storage with the help of retail link, it helps in improving the relationship of both retailers as well as suppliers. Information technology has contributed a vital functioning and operation ease to the company. It provides all the transaction to the company in real time as well as it communicates and forecasts with the information technology implementation significantly (Sukati, et al., 2012). It has provides strategic planning to the company to successfully achieve its targeted goals and improve its way of operations by fastening and delivering data with accuracy. Information technology is the fastest way of commute any message to any department of the company. It escalates the productivity of staff of the company (Wisner, 2014). Furthermore, it ensures the competitive advantage to the company and enhances the electronic bill experience. It aids in depleting the cost and enhances the tracing and expedition services. In Wal-Mart information technology has solved many issues related to almost all departments very effectively (Coyle, et al., 2012). However, there are various aspects which can be outlined as how information technology has a positive impact in supply chain management. It has provided the best E business solution to the company and provided extra time and budged to the company personnel's to look out for other serious and severe matters of the company. It has improved all over implementation of supply chain management by endowing rapid motion and teamwork support in the operation system (Monczka, et al. 2015.). In addition to this, it has provided effective supplier and retailer relationship management. Information technology enabled the best warehouse management for Wal-Mart with quick processing and quality information. Role of Logistics Management and Procurement Practices in Wal-Mart Basically the logistics management and procurement practices are categorised into four parts that is material management, channel management, distribution management and supply chain management (Ross, 2013). The material handling facilitated by logistic management enhances the quality and process of the production and manufacturing of the products. Channel management helps in transportation, and communication of raw material, and finished goods from one place to another (Ross, 2013). Distribution management is associated with the supplies of product in its ultimate place or middle place. With the execution of effective logistic management supply chain management complements the company in determined growth and profitability. There are some factors that need to be profoundly acknowledged while considering management practices related to logistics and procurement. It includes effective order processing, which ensures the improvement in performance of any task carried by the logistic department. Second is transportation that is related with the cost cutting by the aid of logistics department (Liu, 2011). Declined transportation cost will give competitive advantage to the company by making its product cost at low price and offering it as discounted price to the customers. Third, inventory management that is crucial and vital part of the company gives the maximum assistance to the logistic department by handling it right. Moreover, others are warehousing, material handling are also factors that influences the improvement in the logistic and procurement department (Croxton, 2001). Additionally, last is information system is the foremost integral part of the logistic and procurement management as it provides the best and advanced help to make the work faster and easier. To improve the supply chain management, some points can be considered that provides the company an opportunity to increase its profitability even more (Christopher, 2016). The focus of the company should always prcised on the narrowing of the supply chain cost of the organisation. Besides that, any strategy implemented in the supply chain management should involve less time to complete the whole process. The targeted value of production should always be watched and acquired through systematic execution of planned strategy (Ross, 2013). The quality of the product should be the main concern in the supply chain process for the customer satisfaction. Strategies should be based on the subsidised cost and with optimal utilisation of resources. Improvement in Business Performance Through Improvement Strategy With the above strategies for improvising the supply chain management, company will get some long- term and steady benefits such as lowering the over all cost in the supply chain management will give financial resources to the company (Lia, 2006). Along with this the improvised supply chain management will assist in satisfaction of customer services, effective manufacturing of the product and knowledge sharing even more flexible and clear between the management (Natto, 2014). On the other hand, it will also accumulate trusts between the stakeholders of the company and fewer inventories will be handled by the employees. To reduce the overall barriers in the implementation of new plan Wal-Mart has to make strong connection with customers as well as focus on suppliers and retailers. Apart from this, it has to reduce any complex system or hard strategies that delays or resists the production or operation of the company (Natto, 2014). Along with this, improvement in predictions related to market trends or suppliers, sales, production will also help in enhancing supply chain management effectiveness. Conclusion In the above discussion, it has been highlighted that Wal-Mart is fully integrated with potent supply chain management incorporating information technology. It benefits the company in proper knowledge management of the company which ensures the functioning of every business function smoothly. Relationship with suppliers are also being handled by the company very consciously by implementing strategic supply chain management and advanced technology. Hence, the discussion also entails the strategies that should be used by Wal-Mart to improve its supply chain management or logistic procurement. References Bidgoli, H. 2010. The Handbook of Technology Management, Supply Chain Management, Marketing and Advertising, and Global Management. John Wiley Sons. Brunn, S. D. 2006. Wal-Mart World: The World's Biggest Corporation in the Global Economy. Taylor Francis. Christopher, M. 2016. Logistics Supply Chain Management. 5th ed. Pearson UK. Coyle, J. J. 2012. Supply Chain Management: A Logistics Perspective. 2nd ed. Cengage Learning Coyle, J. J., et al. 2012. Supply Chain Management: A Logistics Perspective. 9th ed. Cengage Learning. Croxton, K. L. 2001. 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