Best Practices of Supply Chain Management at Walmart.
Posted on March 2, 2012
Ohio said ,”Supply chain management is moving the right items to the right consumers at the right time by the most efficient means .And no one does it Better than Walmart .” Walmart stores were located at convenient place in a big warehouse type building and targeted customers who wanted to buy merchandise in Bulk . Walmart’s growth continues because it focuses on the customer’s needs and reduces cost through efficient supply chain management practices . Walmart has always considered it important to reduce it’s purchasing costs and pass on the same benefits to its customers .It procured goods directly from the manufacturers bypassing all the intermediaries . Walmart procured goods only when it was assured that the goods are not available anywhere at lower prices .Walmart spend a significant time with there vendors and understanding their cost structure .By making the process transparent it assured that the vendors did their best to keep the costs down . Walmart had 40 distribution centres in 1998 , and due to its own distribution centre it was able to maintain a consistent and steady supply .Walmart used Bar-code technology and handheld computer system .Every employee had real time imformation of the inventory levels . Another important feature of Walmart’s Supply Chain is its efficient Logistics System .Walmart has its own Logistics Structure .Due to its transportation costs are only 3% as compared to 5% of its competitors .Also it recruited drivers who had an experience of accident free driving ,it also have a rule books for the drivers .And the main focus of the drivers was also customer satisfaction .Walmart believed it needed drivers who were dedicated and committed to efficient customer service . Walmart invested heavily in IT and communication system to effectively track its sales and inventories in the store .Walmart also have its own Satellite communication System .Due...
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