Walmart’s Supply Chain Management Practices

Wal-mart’s Supply Chain Management Practices

1. Details of the distribution and logistics system adopted by Wal-Mart.

• Wal-Mart buys products directly from manufacturers, skipping all intermediaries. This way, Wal-Mart can get the goods at lower prices.

• Wal-Mart has its own 40 distribution centers located geographically in the US. It supplies 85% directly to inventory.

• The company uses hand-held computer systems to make the in&outflow of godds easier and more economically beneficial.

• The distribution centers are serviced bij 3500 company owned trucks, making it able to re-store store shelves twice a week.

• Cross docking, supplied directly to customers, bypassing the use of distribution centers and stores.

2. How did IT benefit Wal-Mart’s logistics and inventory system?

• The packing department received accurate information about products to be packed. This saved time and unnecessary paperwork.

• It improved the level of efficiency of the distribution center management operations and satisfy customer needs quickly. (use of hand-helds)

• The satellite communication system can provide information about current events in stores and their sales.

• Networking with suppliers with the use of IT.

• Monitor stock levels, so inventory could be adjusted, according to the customer’s demands.

• The use of bar coding and radio frequency technology enabled easy order packing and physical counting of the inventories.

• Provide uninterrupted