Walmart Case

Question 3: What were the supply chain management process adopted by Wal-Mart and how far were they effective

I. Supply chain management processes adopted by Wal-Mart

1. Supply chain information system management

The sharing of information is the key and foundation of the supply chain management process, and advanced technology can enables companies or suppliers transmits their informations in a very efficient way, as well as their communications. Wal-Mart has be cognizant of the important of this situation, as a result Wal-Mart adopted information technology in its supply chain management processes. Wal-Mart is the first company who uses information technology in its own businesses, and it also has a large percent of information technology investment which all the other companies or enterprises can not match.

‘Superior use of information technology differentiates Wal-Mart from other retail/distribution businesses, allowing both stores and vendors to operate in a just- in-time time mode while responding to changing customer demand’(Price, Robert M, 1996, P.41). Wal-Mart has a whole set of information system, this system includes a main information center in the headquarter which has plenty of computers and servers. This information center is the brain of Wal-Mart. Wal-Mart also has its own satellite, and due to the other technologies like Radio Frequency Identification and management information system, Wal-Mart can control its supply chain management in a very organized way, and all these advanced technologies have benefited Wal-Mart’s supply chain for many years.

Pull supply chain strategy

To some extent, Wal-Mart’s “exemplary growth has been attributed to the large size of the U.S. market”(Stephen J. Arnolda, Robert V. Kozinetsb, Jay M. Handelman, 2001, P.244), but most importantly, is because of its efficient supply chain system. Compare with many other companies’ traditional supply chain, Wal-Mart adapts a totally different management processes, which is known as pull supply chain strategy. Supply chain is ‘an integrated manufacturing process wherein raw materials are converted into final products, then delivered to customers’(Benita