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Wal Mart Supply Chain Management Essay

2110 words - 8 pages

Retail super-giant Wal-Mart has fought its way to becoming the world's
largest company. Much of their success can be attributed to providing
a vast assortment of products at exceptional prices all under one
roof. Wal-Mart began operations in 1964 and has since become the
world leader in retail. Today, Wal-Mart is visited by 138 million
customers per week at their 4,750 stores. Wal-Mart operates under
four basic rules in order to satisfy such a large number of customers:
Respect the individual, provide the best service to their customers,
strive for excellence, and exceed customer expectations.

Their corporate mission focuses on a global growth strategy through
concentrated integration. The company continues to expand its
existing discount stores, warehouses, and super-centers. The company
maintains two goals: First, Provide the customer with what they want,
when they want it, all at value and secondly, team spirit through
total dependency on associates to treat customers as they would want
to be treated. Their business strategy is to provide well-known name
brands at an everyday low price. Wal-Mart has a wide range of products
offered. They offer everything from electronics, movies, books, toys,
games, gardening supplies, home supplies, photo development, gifts,
jewelry, and at some locations even automobile, optometry, and grocery
shopping centers.

In operating its network of retail stores Wal-Mart pushes their output
to the general public. Wal-Mart focuses their competitive priorities
on bringing the customer the lowest prices by selling in volume. The
vast size and selection essentially guarantees that the store will
have what the customer wants in stock and at a cheaper price than
competitors. This strategy allows them to outsell their competition.

In order to facilitate the achievement of their goals Wal-Mart has
designed their layout to accommodate a large number of shoppers at the
same time. They build expansive stores with wide aisles so that many
people can feel comfortable shopping at the same time. Wal-Mart has
taken the initiative to build stores in countless rural towns and
smaller cities. They have increased their market share and have
gained a reputable name by doing so. At the same time, this benefit
has created an enormous supply chain management problem. How can
Wal-Mart effectively keep all of its stores supplied when their stores
are spread all over the country?

Supply chain management is an important process for Wal-Mart. The
suppliers are the root of their supply chain management system. To
maintain high quality products, Wal-Mart has developed supplier
standards that all perspective suppliers must meet. Wal-Mart supplier
standards reflect many of the sensitivities of the global community as
well as meet their suppliers', customers', and shareholders'
expectations about how Wal-Mart conducts its business. Wal-Mart
regularly monitors the factory base of their suppliers in...

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