Wal-Mart Stores Case Study

Wal-Mart Stores Inc., popularly known as Wal-Mart is one of the world’s largest retailers. It operates a system of an efficient network of cross docking facilities which enables it to keep a minimal store inventory while simultaneously enabling more frequent supplies to the retail stores. This system is reliant on a sophisticated highway transportation system in the United States which allows Wal-Mart to accurately estimate arrival and departure times of delivery trucks at their cross-docking facilities nationwide, therefore giving them a smooth flow of inventory. When Wal-Mart expanded their operations into South America, it had to adapt its approach as it cross-docking system as it was experiencing difficulty in running logistic as infrastructures are as developed as that of the United States.

Wal-Mart South America experience shows that operating supply chains internationally require that the firms are able to adapt their existing supply chain strategies in their home countries to the new environment or develop new strategies that are suitable for each country they expand to. Therefore, a successful entry into India by Wal-Mart is dependent on how well the country can execute the following steps. Understand your service supply chain

1. Determine the needs of your customers and convey those needs down the supply chain
2. Obtain high quality suppliers
3.  Maintain a competitive advantage by offering high value 

Understanding your service supply chain.

The main elements of a supply chain are purchasing, operations, distribution, and integration. Wal-Mart top position in the retail market is as a result of its understanding and effective integration of these elements. Its supply chain strategy is based on the integration four key components which are: vendor partnership; cross-docking, technology and proper distribution management. This strategy affords Wal-Mart competitive advantages such as low cost of products, reduced costs and smooth flow of inventory; highly competitive pricing for consumers, etc. It is important that Wal-Mart adapts the strategy to suit the India environment so as to become a dominant in the India retail market.

Determine the needs of your customers and convey those needs down the supply chain.

With a population of over a billion and a steady growth of the economy India is an attractive market for products and services with a very attractive consumer market. In order to tap into the India attractive consumer market it is important to clearly identify the need of the customers and pass the information down the supply chain to give the customer maximum value for their money.

Obtain high quality suppliers.

It is important that firms take great care in choosing their suppliers as they are critical to the growth of their business. Study has shown that firms that involve supplier early usually enjoy about a 20% reduction in material cost, a 20% improvement in material quality, and a 20% reduction of development time (Monczka, Trent, & Handfield, 2005).