Supply chain Wal-Mart Harvard Case Solution & Analysis

Summary

Wal-Mart is the world’s leading retail store in the world. It operates approximately 3,900 stores in the United States and 2,600 stores in 13 other countries around the world, where it is offering more than 100,000 products. However, the company has well-structured supply chain and logistics management team that works efficiently to provide value for the organization.Nonetheless, the company has a competitive advantage over the competitors in supply chain management operations. Thus, it has brought two initiatives Remix and RFID to improve, redesign, and avoid the delays in restoring the SKUs in shelves to eliminate the loss of sales. Moreover, Wal-Mart has been experiencing slow growth in the market as compared to the competitors, and its self-imposed objective of reducing thecost of inventory by applying a concept of just-in-time and Taguchi subjected to decrease a growth rate as half of the sales growth rate and to avoid the cost of caring and maintaining excess inventory at warehouses. In order to overcome this problem,it is determined that Wal-Mart should implement the systematic forecasting system by adopting the Time series model, which uses the past data of the sales over the given time periods and predicts the future demand in the same period as analyzed in the previous data, and this technique is feasible for Wal-Mart to track the demand in the past over the same period, and make an order of the same SKUs for future demand.

Supply chain Wal-Mart Harvard Case Solution & Analysis

Introduction

Wal-Martis the world’s largest retail superstore chain around the world having revenues of $312.4 billion in 2006. Sam Walton founded the companyin Bentonville, Arkanas. Its growth was due to the critically structured supply chain operations that enabled Wal-Mart to expand in the market quickly and efficiently as compared to the competitors in the market. Moreover, it expanded to over 6,500 stores worldwide, having stores all fifty states in the UnitedStates with the total workforce of the 1.8 million employees worldwide. Meanwhile, it was serving the 138 million customers each week worldwide.

However, such huge growth of the stores around the world was theresult of its supply chain management and procurement process around the world whereWal-Martwas the only store having large distribution centers in the rural areas that were cheap as compared to the competitors in the market. It has built the effective supply chain throughout its stores and distribution centers as well as it has built its transportation network to transport the products from the suppliers to its distribution centers in the world. Meanwhile, it was nominated as the “retailer of the decade” in 1989 since, its distribution costs were estimated at the rate of 1.7% of its total sales, whereas the average cost of the distribution in the industry was 3.5%.

Similarly, the distribution centers sincethen transported these products to the stores as per their demand. On the other hand, Wal-Martisthe only superstore chain that has largest customer sales database, and it has implemented the real-time sales recordingas well as it hasshared network links with its suppliers to track the inventories at Wal-Mart stores...........................

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