Introduction
Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969; it similarly owns and operates Sam’s Club retail warehouses (Izadpanah, 2020). The company offers a wide variety of merchandise, including groceries, furniture, electronics, apparel, and more. In recent years, Walmart has similarly been increasing its focus on selling organic and sustainably sourced products.
The supply chain is a system of organizations, people, technology, and activities that work together to develop and provide products and services. The supply chain starts with the supplier and ends with the customer. It is important because it can have a big impact on the quality of a product or service, as well as the cost. For example, delays in the supply chain could mean that customers have to wait longer for their products or services (Popescu, 2019). Similarly, when a company can have an efficient and effective supply system, it will attract many clients. Therefore, Walmart can gain or lose its customers based on its supply chain system.
Supply Chain and Organizational Strategies Examination
Walmart’s organizational strategy is based on three key principles: cost leadership, differentiation, and global expansion. The company’s supply chain is an integral part of its operations, and it has been optimized over the years to support these strategic goals. One of Walmart’s primary goals is to keep its costs as low as possible to maintain a competitive edge in the retail industry (Izadpanah, 2020). Its supply chain has been designed accordingly, with a focus on maximizing efficiency and minimizing waste. This includes using a just-in-time inventory system that minimizes the need for storage space, as well as partnering with suppliers who can provide goods at low prices. Additionally, the inventory absence eliminates the costs of material handling. Conversely, in some regions with a high volume of sales, the company purchases goods in bulk, thus enjoying economies of scale. Economies of scale benefits include huge discounts and free transport, thus enabling the company to attain cost leadership.
Similarly, Walmart has been focused on achieving the other two objectives: differentiation and global expansion. In terms of differentiation, Walmart has always strived to offer its customers low prices by working closely with suppliers to ensure efficiencies throughout the supply chain. By doing so, they have been able to keep costs down for their customers (Popescu, 2019). On the saved cost, the company has been able to initiate big discounts and gifting to its client on purchasing a given amount of products since the business enjoys economies of scale as well. Likewise, Walmart’s organizational strategy of global expansion is supported by its supply chain. By creating a reliable and efficient supply chain, Walmart can quickly and easily bring its low prices to new markets around the world.
Walmart Information Management System
Walmart’s company information management system is designed to keep track of important company data and ensure that it is easily accessible to authorized employees. The system includes a variety of features that streamline data management and make it simple to find the information needed. One key feature of the system is the ability to create custom reports (Ge et al., 2019). This functionality allows managers to generate reports on specific topics, such as sales totals or inventory levels, and then share them with other employees who need access to the information. Likewise, the system includes a built-in search function that makes locating specific files or documents easy. Walmart’s company information management system makes it quick and easy for authorized employees to find the data they need.
Supply Chain Efficiencies Improvement
There are a few ways to improve supply chain efficiencies at Walmart. One way is to improve the communication between suppliers and Walmart. This can be done by creating a more streamlined process for ordering and tracking inventory, as well as developing better systems for sharing information between both parties. Another way to improve efficiencies is to optimize the distribution network (Ge et al., 2019). Walmart can work with suppliers to identify challenges in the supply chain and find ways to reduce or eliminate them. Finally, Walmart can similarly work on improving its internal processes, such as order fulfillment and inventory management. By improving these areas, Walmart can create a more efficient supply chain that benefits both itself and its suppliers.
Transport and Warehouse Management by Technology
Technology is used for managing Walmart’s transportation and warehousing network in a few ways. Radio-frequency identification (RFID) tags are used to track inventory as it moves through the supply chain, and barcode scanners are used to track products as they are stocked and scanned at check-out (Popescu, 2019). Global positioning system (GPS) tracking is used to monitor the location of trucks and drivers. In addition, sophisticated routing software determines the most efficient way to move items from one place to another based on real-time traffic conditions and other factors. This helps ensure that products are delivered quickly and efficiently to stores all over the country.
Walmart’s Inventory Management System (IMS) Competitive Advantage
The IMS is a key competitive advantage for Walmart because it allows the retailer to leverage its massive size and bargaining power more effectively. By having a better handle on inventory levels, Walmart can order larger quantities of merchandise at lower prices. That saving gets passed on to customers in the form of lower prices, which keeps them coming back. Similarly, Walmart’s IMS provides a competitive advantage over the competition by giving the company real-time visibility into what is selling and what needs to be restocked (Popescu, 2019). This information helps Walmart make better decisions about what items to stock in its stores and enables it to replenish inventory levels when needed quickly. Additionally, the system allows Walmart to track customer buying patterns and preferences, which can help the company make strategic decisions about product offerings.
IMS Supply-Chain Partners Coordination
The IMS is Walmart’s software system that helps coordinate between its suppliers and partners. It aids in coordinating between supply-chain partners by managing the flow of information between them, including orders, inventory, and shipping schedules (Popescu, 2019). It allows the partners to share data and track inventory in real time so that they always have the latest information on what items are in stock at which stores and can plan their production accordingly. This makes for a much more efficient and streamlined supply chain, with less waste and fewer stock-outs.
Supply Chain Analysis to Meet Customers’ Demand
At Walmart, the supply chain systems are designed to quickly and efficiently meet customer demands. For example, the distribution centers are strategically located to ensure that products are delivered to stores as quickly as possible. Additionally, the company has a robust inventory management system that helps track product demand and make sure that products are always available for customers (Ge et al., 2019). A robust inventory management system is a tool that helps businesses keep track of their inventory levels, orders, and deliveries. It similarly provides information on stock-outs and helps identify areas of improvement in the supply chain. Moreover, the organization works closely with the vendors to ensure that they can meet its demand for products. Walmart has several programs in place to help it improve production quickly if necessary. And regularly review the inventory levels to make sure that the company is not overstocking or undersupplying any product categories.
Inventory Level Monitoring and Customer Satisfaction by IMS
The IMS helps to monitor orders and inventory levels to satisfy customers at Walmart. It does this by tracking the inventory that is on hand and ensuring that it is being replenished as needed. Additionally, it helps to forecast demand for products so that Walmart can ensure that it has the correct quantities of products in stock at all times. This allows Walmart to provide better customer service and avoid stock-outs (Popescu, 2019). A stock-out occurs when a company or organization does not have enough inventory to meet customer demand. This can cause several problems for a business, including lost sales and decreased profits. Stock-outs can lead to dissatisfied customers, who may locate another supplier. Additionally, stock-outs can cause employees to waste time trying to locate items that are not in stock, which can impact productivity. Finally, stock-outs can create shortages that may force the company to raise prices to cover increased costs.
Information Management Importance
Information management is a critical function for any company, as it allows them to make informed decisions based on accurate data. This is especially important for companies like Walmart, which rely on moving products efficiently and at a low cost to be successful. Information management includes tasks such as data collection, data analysis, and report generation (Ge et al., 2019). By collecting accurate data and analyzing it effectively, companies can identify trends, assess their performance, and make changes that improve their bottom line. Poor information management can lead to inaccurate decision-making and lost profits.
Conclusion
In conclusion, Walmart has been performing better due to creating and maintaining effective and efficient supply chain management. This supply chain supports the company’s strategies such as differentiation, cost leadership, and global expansion. Based on the regional demand, the company adjusts where necessary by keeping inventory to avoid stock-out or lost sales. The company has been avoiding stock-out cases by installing technologies such as radiofrequency identification and barcode scanners to track the products and inventory levels, thereby eliminating theft and stock-out instances. Walmart eliminates inventory costs in areas with low demand by applying a just-in-time strategy. These technologies provide the company with accurate data that helps the organization make correct decisions, making information management a key factor in Walmart’s growth.
References
Ge, D., Pan, Y., Shen, Z. J. M., Wu, D., Yuan, R., & Zhang, C. (2019). Retail supply chain management: A review of theories and practices. Journal of Data, Information and Management, 1(1), 45-64.
Izadpanah, N. (2020). A study of human values at Wal-Mart company. Asian Journal of Multidimensional Research (AJMR), 9(7), 61-70.
Popescu, M. C. (2019). Improving the lean logistic operations management in transportation by introducing the RFID system. In Proceedings of the International Conference on Business Excellence, 13(1) 1118-1129.