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Supply Chain Operations Essay

¶ … Wal-Mart and how over the years it has managed its supply chain operations. A one of the leading successful company in the world, and ruling the Fortune 500 in 2011 and for the second year running, its success could be labeled from its continued focus on customer's needs and reducing costs through efficient supply chain management practices. Supply Chain Management (SCM) can be defined as the running of a network of interrelated businesses with the ultimate goal of providing products and services at the required time, and as required by end/right customers and at the required time using the most efficient means. (Harland, 1996) Wal-Mart has been commended for doing that very well. It could also be taken to mean the process of a company design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.

'Wal-Mart has been proficient in delivering a vast range of products at the lowest costs in the shortest time possible. Its success is as result of having highly automated distribution centers which radically reduces its shipping costs and time besides ensuring a steady and consistent flow of products to support the supply function.' (Hanna et al.,...

Its decision to reduce its purchasing costs and offer the best price to its customers has also gone a mile in helping Wal-Mart achieve supply chain management. This has been achieved through the company procuring goods directly from manufactures.
Wal-Mart has also been able to replenish its goods and services within a short time than that of its competitors due to its transport system. For instance, shipping costs for Wal-Mart can be placed at 3% as against 5% for competitors. Each distribution center is divided into different sections according to the quantity of goods received. Wal-Mart is a tough negotiator on prices so as to sell its products at lower price than its competitors.

Technology has made things easier for Wal-Mart. With so many chains all over the country, technology comes handy. By use of computers in all of its company's operations, Wal-Mart has been successful in providing uninterrupted services to its customers, suppliers, stakeholders, not to mention its trading partners. Technological devices such as the sophisticated barcode and hand-held computer systems have made the managing of the center easier and more economical. Different barcodes are used in labeling…

Sources used in this document:
Works cited

Mangan J & Butcher T. (2008). Global Logistics and Supply Chain Management John Wiley & Sons Inc.:

Hanna, Mark D. & Newman, W. Rocky (2006). Integrated Operations Management: A supply Chain Perspective: Cengage Learning

Harland C.M. (1996). The Development of Supply Chain Management within the Aerospace Manufacturing Sector Supply Chain Management: An International Journal Volume 9 issue 3
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