Tuesday, February 11, 2020

Analyzing Supply Chain Management and Innovation (WAL-MART) Essay

Analyzing Supply Chain Management and Innovation (WAL-MART) - Essay Example The success of Wal-Mart stores Inc. can be attributed to its ability to manage the supply chain efficiently. This essay analyzes the strategies that Wal-Mart uses for its supply chain management and innovation practices. Wal-Mart has a wide array of products targeting families and middle class individuals with modest incomes. Most of these customers are more focused on the quality of the products they purchase from Wal-Mart stores, rather than the branding of the products. There are four main elements of Wal-Mart’s supply chain management strategy. These are technology, vendor partnerships, integration, and cross docking and distribution management (Leeman, 36). The whole process starts from strategic sourcing, which is aimed at identifying high quality products at the best prices from reputable suppliers who have the ability to meet the existing demand. The organization then forms strategic partnerships with most of the vendors, creating a long term relationship that benefits the customers. The suppliers will then ship their products to the Wal-Mart stores for cross docking and delivery to stores in other locations around the world. The cross docking process, efficient management of distribution, and the transportation process helps Wal-Mart to maintain a constant inventory to cater for market demand. The company also focuses on eliminating inefficiencies that can undermine the whole process. Wal-Mart is highly regarded for its innovative business practices in the industry(Leeman, 69). For instance, it was among the first companies on the global scene to centralize their distribution system and rely heavily on Information Technology. Wal-Mart manages its Supply chain by using a highly integrated approach that brings together elements of logistics, operations management, information Technology, and procurement. The success of Wal-Mart’s strategy of

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