Transportation Economics and ERP Implementation
A Brief Summary of the Organization
Wal-Mart is an American public corporation established in 1962. The company runs a chain of warehouse stores and discount stores located across the globe. Today, Wal-Mart is the leading grocery chain internationally. The company offers a wide selection of products in their over 8000 stores worldwide (Sehgal, 2011).
The Role of Transportation Economics in Wal-Mart’s Transportation Decisions
Transportation is one of the most critical economic activities for Wal-Mart. By shifting goods from where they are sourced to locations where the demand is high, transportation is an essential logistic function that links Wal-Mart to its customers and suppliers. This activity supports the company’s economic utilities of time and place. By place, the customers must always find the goods at any given place they demand it. Time utility means that Wal-Mart must ensure that customers can access the goods whenever they need it (Sehgal, 2011).
At times, transportation can be blamed for Wal-Mart’s inability to serve its customers properly. For instance, the company occasionally experiences late deliveries, which in turn cause complaints and service problems. Moreover, the company has previously incurred product damages during transit, or the employees might load the wrong products for shipping. Normally these are referred to as over, short, or damaged (OS&D) shipments (Sehgal, 2011). They can lead to customer frustration and dissatisfaction hence influence the decision to purchase from rival companies.
However, Wal-Mart has adopted the latest technology to help perform on time with undamaged and complete deliveries. The strategy has promoted customer satisfaction and confidence besides gaining more business for the firm. By instilling confidence in service performance, Wal-Mart has successfully made customers more reluctant to succumb to competitors offers via reduced prices and clever promotions (Sehgal, 2011).
Wal-Mart’s Supply Chain Contributions to Customer Service Levels
The company’s supply chain has been instrumental in connecting customers with e-commerce orders. The company...
References
Brady, J. A., Monk, E. F., & Wagner, B. J. (2011). Concepts in enterprise resource planning. Boston, MA: Course Technology.
Roberts, M. L., & Zahay, D. L. (2012). Internet marketing: Integrating online and offline strategies. Mason, OH: South-Western Cengage Learning.
Sehgal, V. (2011). Supply chain as a strategic asset: The key to reaching business goals. Hoboken, NJ: Wiley.
Supply Chain Ann Supply Chain Management Annotated Bibliography Chopra, S., & Meindl, P. (2010). Supply chain management: Strategy, planning and operation (4th ed.).Upper Saddle River, NJ: Prentice Hall The text by Chopra & Meindl (2010) is an excellent starting point for this discussion, primarily because it serves as a rather exhaustive introductory reading on the subject. Providing academic explanation of the basic premise of supply chain management and an extensive investigation of the
Supply Chain Management Purchasing and Supply Management: A Key to Competitive Advantage Purchasing and supply management is an essential function of any business. Regardless of the size of the business, or the product are service that they offer, every business depends on some type of supply in order to produce goods or services. If supplies do not arrive on time, the business could be it a standstill. This not only means lost
"Wal-Mart has the biggest IT systems of any private company in the world and supply chain Wal-Mart has made important investments in supply chain management" (Why Wal-Mart's supply chain is so successful, n.d.). Wal-Mart's way of doing business is founded on a low price approach and low transportation expenses which permit it sell its products at the lowest achievable prices. "In return for its Everyday Low Price Strategy, Wal-Mart's suppliers,
Improvement at Wal-Mart Stores How can the logistics processes be improved in your organization? The logistic process of Wal-Mart provides results that have propelled the retail giant to the top income earning company in 2007. They are the first store to assume the first place in sales in the Fortune 500 magazine, exceeding giants in the energy sector: Chevron and Exxon Mobil; and manufacturer: General Motors. Wal-Mart's growth is based on
SCM Supply Chain Management An Overview of Supply Chain Management which Includes Two Recent Examples Supply Chains as a Competitive Advantage Apple Inc. Wal-Mart's SCM Supply chain management (SCM) stands at the forefront of operation management in most organizations. The concept of SCM involves how to transform inputs and add value to a product or service. The efficiency and effectiveness of a SCM function has a direct effect on how successfully the business can compete in
Operations Management WalMart Supply Chain Innovation WalMart is the world's largest retailer and know as a leader in supply chain management. The way in which WalMart has innovated in terms of the way that the supply chain is management which has included looking at the structure and processes used in the supply chain as well as embracing and leveraging technology. The results have been a reduction in costs and improvement in overall
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now