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 efficiency.
The innovations at WalMart are not all recent; with WalMart constantly adapting and changing. One of the first major innovations, and one which is still in use today started during the 1980s, was the removal of links in the supply chain. A strategy adopted by the company with the aim of creating create efficiency and cutting costs was the development of direct relationships with suppliers, working directly with the manufacturers are supplied many goods, cutting out the middle person (Taub, 2012). Fewer links in the supply chain has the potential to reduce costs and increase the speed at which the transactions across the supply chain take place (Christopher, 2011). It maybe argued is that innovation has guided some subsequent strategies that have been adopted, in terms of collaboration, which has been facilitated through the IT inventory management strategies that have been utilized.
The firm will share relevant data with vendors regarding the sale of their products and the levels of invitatory already held as well as forecasts-based ion the current patterns of sales (Taub, 2012). This information is then used by the vendors to plan their own production, creating a scenario where there is almost always the immediate ability for vendors to supply WalMart's inventory needs (Taub, 2012).
The value is in more than simply sharing data to enable more accurate forecasting, the WalMart database…
Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands
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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
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Over the next five years, they are working on increasing this amount to as close to: 100% as possible. With the company estimating that such a move would cut logistics costs between $4 billion to $12 billion, over the course of 5 to 15 years. (Cassidy, 2010) This is significant because it shows that the ability of Wal-Mart to seek out ways to reduce logistics costs, are helping to
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