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Green Management of Wal-Mart

In: Business and Management

Submitted By WoShiMickeY
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Analyze and discuss the company’s practices / operations related to the selected topic.

Wal-Mart Operations Management Analysis

Mission : ‘Save people’s money so they can live better’
SUPPLY CHAIN MANAGEMENT PRACTICES
Wal-Mart’s ability to focus on customer needs and reduce costs through efficient supply chain management practices has attributed to its growth. Wal-Mart’s automated distribution centers , reduce shipping costs and time, while its computerized inventory system speeds up the recording of transactions. * Every Day Low Prices (EDLP)
Promises customers a variety of high quality branded and unbranded products at the lowest possible price, offering better value for money than its competitors. The company emphasized strengthening its relationships with customers, suppliers and employees. Low transportation costs, resulting from its owning its transportation system, can deliver goods to stores within 48 hours or less, enabling Wal-Mart to replenish its stock four times faster than its competitors.
The EDLP ensures sales volumes are high and consistent. Wal-Mart can afford to offer higher discounts than other retailers based on the velocity that its products move through the supply chain. * Speed ,Consistency ,Accuracy
Reduction in lead time, faster inventory turnover, accurate forecasting of inventory levels, increased warehouse space, reduction in safety stock and better working capital utilization are all examples of how Wal-Mart uses supply chain management principles to stay competitive.
These practices have resulted in increased efficiency in operations and improved customer service. * Cross Docking
Wal-Mart also uses cross-docking to reduce inventory storage costs and enhance delivery speed. Cross-docking refers to the packing of products on incoming shipments so that they can be easily sorted at intermediate

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