Verified Document

Wal-Mart Maximize Its Logistics Efficiency Through Facility Essay

¶ … Wal-Mart maximize its logistics efficiency through facility location planning Logistics today is much more than transfer or delivery of goods as the investigation of the systems of Wal-Mart would show. Logistics is intertwined with a lot of things like infrastructure, information and system planning based on the type of industry and the motives of the organization. In the case of Wal-Mart, the system has to be very cost effective and for this they take the supply side seriously. They have also put in one of the best information infrastructure and created the necessary physical infrastructure with independent management for the outlets. This with the company's planning for supplies even in extreme conditions including disasters has made its system robust.

Logistics and facility planning are intertwined. One cannot exist without the other. Facility planning is necessary for distribution and logistics is the method of taking the wares to the facility. The location where the distribution takes place has to be planned in such a way that it is cost effective -- both for the storage, distribution and delivery. In the case of Wal-Mart, it is a retailer and delivery to the customer occurs at the mall. The location of the mall has to be such that primarily the customer has to have a clear access to the mall and secondly the place must be such that access to delivery and other logistics operation is also possible.

Logistics and outlet planning go hand in hand with the company's motto. Wal-Mart's motto is to give quality goods at very cheap prices. All its operations are therefore designed to that end. Achtmeyer (2002) in the beginning era of Wal-Mart has observed that in Wal-Mart company seeks to have suppliers who offer competitive of prices. The price and cost...

Because they have to serve the globe, they have the policy of sticking to the most reasonable prices. Thus the awareness of cost, customers, and need for investing in continuous improvement and the bifurcation of the various retail units to small supplier stores as individual firms have made the logistics functions seamless and cost effective. Thus it can be seen that controlling cost and being conscious of costs is an important step that any company ought to take in planning the logistics functions. In these days of rapidly advancing technology that spans a vast array of information and also physical spheres of logistics, the use of modern technology from cell phones to satellite tracking and other methods cannot be overlooked. (Chandran, 2003)
Though the independent yet interdependent activities of delivery and distribution, storage, mall management and supplier and procuring management and other activities are designed to be cost effective, it can be achieved through integration using the most efficient logistics system. This is partly because of their ability to deliver goods manufactured all over the world to the various retail outlets all over the world. This is attributed to the firm's well structured logistics system that enables facilitation of shipment anywhere in the world within a very short time. (Chandran, 2003) Wal-Mart has the best information technology in any private company, and has an integrated IT policy. (Bergdahl, 2006)

However today companies like Wal-Mart are technology driven for the simple reason that they use automated systems that can be used for processing and for the retailer the system is important to the management of inventory, logistics and…

Sources used in this document:
References

Achtmeyer, W.F. (2002) "Wal-Mart Stores Inc."

Tuck School of Business Dartmouth College.

Bergdahl, M. (2006) "Wal-Mart is a Company Obsessed with Lowering Costs . . . Is

Yours?" Retrieved 17 September, 2012 from www.michaelbergdahl.net
Retrieved 17 September, 2012 from http://www.goecart.com/support/Efficient_Order_Management_Software.aspx
Cite this Document:
Copy Bibliography Citation

Related Documents

Wal-Mart's Facility Location Planning
Words: 949 Length: 3 Document Type: Case Study

Logistics Planning Wal-Mart's growth and profitability to become the leading retailer across the world is partly attributed to its seemingly effective logistics system that has enabled the firm to manage its wide range of goods effectively and efficiently. Actually, the company's logistics system generates results that have enabled Wal-Mart to become one of the top revenue earning firms. In addition to being the top generating company in 2007, Wal-Mart was the

Wal-Mart Case Study Case Issues:
Words: 4206 Length: 15 Document Type: Term Paper

Robson Walton - Chairman of the Board of Directors of Wal-Mart Stores, Inc. Stephen P. Whaley - Senior Vice President and Controller Eric S. Zorn - Executive Vice President and President, Wal-Mart Realty III. INTERNAL ENVIRONMENT: STRENGHTS and WEAKNESSES A. CORPORATE STRUCTURE Wal-Mart's retail division is formed from four major subsidiaries: Wal-Mart Discount Stores, Wal-Mart Supercenters, Wal-Mart Neighborhood Markets and Sam's Clubs. (Wal-Mart Facts, 2007) Wal-Mart Discount Stores more than 1,000 in U.S. alone average

Wal-Mart's Facilities Are Designed for Logistics Efficiency
Words: 1515 Length: 5 Document Type: Essay

Wal-Mart's facilities are designed for logistics efficiency In a business world where lack of sustainable infrastructure leads to unorganized logistics and primeval warehouses, Wal-Mart has embraced a revolution. Wal-Mart is the leading global retailer that has set benchmarks for its competitors. The store is expanding at a rapid rate. Its stores are well-known for their tough negotiation with suppliers; this forces the competitors to lower their prices. All this is

Wal Mart Stores Inc Comprehensive Analysis
Words: 3994 Length: 13 Document Type: Research Paper

Wal-Mart Stores, Inc. Comprehensive Analysis of SEC form 10-k and the DEF-14A Proxy statement Contents 1. Background 1 2. Walmart’s Business Strategy 3 3. Stakeholder Evaluation 4 3.1. Internal Stakeholders 4 3.1.1. Shareholders 5 3.1.2. Board of Directors 5 3.1.3. Management 5 3.1.4. Employees 6 3.2. External Stakeholders 6 3.2.1. Retail Industry 6 3.2.2. Competitors 7 3.2.3. Customers 8 3.2.4. Suppliers/Vendors 9 3.2.5. Government Agencies 9 3.3.6. Communities 10 4. SWOT Analysis 10 4.1. Strength 10 4.2. Weakness 12 4.3. Opportunities 12 4.4. Threats 13 5. Conclusion 13 References 14 1. Background Wal-Mart Stores, Inc, hereby

Value Chain Analysis Wal-Mart Derives
Words: 1212 Length: 4 Document Type: Research Proposal

Furthermore, the Costco model demands an ever-changing assortment of goods. Packaging is critical, in that it must be designed to drive the average ticket consistently higher. Costco and other club stores rely heavily on packaging strategy to squeeze out growth. Costco also pulls value from their logistics. The company operates what they term depots, which are state of the art distribution facilities, which the company feels gives them a competitive

Business Wal-Mart When Sam Walton
Words: 2984 Length: 9 Document Type: Thesis

While their backgrounds and personal beliefs are very different, they never take each other for granted. They are encouraged to express their thoughts and ideas and to treat each other with dignity. Service to their Customers -- customers are the reason that they are in business, so they believe that they should treat them that way. They offer quality merchandise at the lowest prices, and do it with the best

Sign Up for Unlimited Study Help

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