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efficiencies and build a lean supply chain. Walmart has been able to assume market leadership position primarily due to its efficient integration of suppliers,manufacturing,warehousing.and distribution to stores. Its supply chain strategy has four key components:vendor partnerships,cross docking and distribution management,technology,and integration. Walmart's supply chain begins with strategic sourcing to find products at the best price from suppliers who are in a position to ensure they can meet demand.Walmart establishes strategic partnerships with most of their vendors,offering them the potential for long-term and high volume purchases in exchange for the lowest possible prices. Suppliers then ship product to Walmart's distribution centers where the product is cross docked and then delivered to Walmart stores.Cross docking,distribution management,and transportation management keep inventory and transportation costs down,reducing transportation time and eliminating inefficiencies. Technology plays a key role in Walmart's supply chain,serving as the foundation of their supply chain.Walmart has the largest information technology infrastructure of any private company in the world.Its state-of-the-art technology and network design allow Walmart to accurately forecast demand,track and predict inventory levels,create highly efficient transportation routes,and manage customer relationships and service response logistics. Wal-Mart's supply chain management strategy has provided the company with several sustainable competitive advantages,including lower product costs,reduced inventory carrying costs,improved in-store variety and selection,and highly competitive pricing for the consumer.This strategy has helped Walmart become a dominant force in a competitive global market.As technology evolves,Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency. Wal-Mart is successful and is a multi-billion dollar company due to the following: Massive buying power Wal-Mart is providing its customers with everyday low prices hence giving them value for their money.Wal-Mart is able to provide low prices as it has massive buying power. Furthermore,there are tough negotiations with buyers helping it drive down costs. Operational excellence The philosophy behind operational excellence is high expectations.High expectations lead to high productivity,high productivity means efficient processes,efficient processes means lower costs.These lower costs mean more profits and savings which enable it to open more stores making it more financially stable and enabling it to achieve economies of scale.Greater scale in turn means lower prices which are then passed on to the consumers. Strong logistics distribution network Besides the low prices,the products are made available to consumers with minimal inconvenience.Wal-Mart has developed a strong logistics and distribution network and following the hurricane Katrina it was able to supply its stores with products quickly when other stores were out of stock for many items.efficiencies and build a lean supply chain. Walmart has been able to assume market leadership position primarily due to its efficient integration of suppliers, manufacturing, warehousing, and distribution to stores. Its supply chain strategy has four key components: vendor partnerships, cross docking and distribution management, technology, and integration. Walmart’s supply chain begins with strategic sourcing to find products at the best price from suppliers who are in a position to ensure they can meet demand. Walmart establishes strategic partnerships with most of their vendors, offering them the potential for long-term and high volume purchases in exchange for the lowest possible prices. Suppliers then ship product to Walmart’s distribution centers where the product is cross docked and then delivered to Walmart stores. Cross docking, distribution management, and transportation management keep inventory and transportation costs down, reducing transportation time and eliminating inefficiencies. Technology plays a key role in Walmart’s supply chain, serving as the foundation of their supply chain. Walmart has the largest information technology infrastructure of any private company in the world. Its state-of-the-art technology and network design allow Walmart to accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships and service response logistics. Wal-Mart’s supply chain management strategy has provided the company with several sustainable competitive advantages, including lower product costs, reduced inventory carrying costs, improved in-store variety and selection, and highly competitive pricing for the consumer. This strategy has helped Walmart become a dominant force in a competitive global market. As technology evolves, Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency. Wal-Mart is successful and is a multi-billion dollar company due to the following: Massive buying power Wal-Mart is providing its customers with everyday low prices hence giving them value for their money. Wal-Mart is able to provide low prices as it has massive buying power. Furthermore, there are tough negotiations with buyers helping it drive down costs. Operational excellence The philosophy behind operational excellence is high expectations. High expectations lead to high productivity, high productivity means efficient processes, efficient processes means lower costs. These lower costs mean more profits and savings which enable it to open more stores making it more financially stable and enabling it to achieve economies of scale. Greater scale in turn means lower prices which are then passed on to the consumers. Strong logistics & distribution network Besides the low prices, the products are made available to consumers with minimal inconvenience. Wal-Mart has developed a strong logistics and distribution network and following the hurricane Katrina it was able to supply its stores with products quickly when other stores were out of stock for many items
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