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Walmart Supply Chain Management

In: Business and Management

Submitted By rajanagaiah
Words 2069
Pages 9
Supply Chain Management
Chapter – 5
Level-3 Project
Course: BADM 425 – Production and Operations Management
Instructor: Professor Tom Martin
Report Written by: Raja Vinjamuri (7291237)

Firm chosen: Walmart
Person Interviewed: Mr. Clay Peltier (Assistant Manager)
Report: Before, we discuss about the Supply chain management of Walmart, I would like to clarify their business philosophy, which is to keep prices as low as possible. Even if their margins weren't higher than competitors and in fact very less, they could make up for that in volume. Various factors like Technology combined with flawless Supply chain management, enables them to maintain such low costs. Now let’s see various elements of their supply chain management. The relationships of the firms in Supply chain: Normally any supply chain has a suppliers, manufacturers, distributors, wholesalers and retailers. Though walmart is technically considered as a retailer, in the words of one of its assistant manager of operations, “it is actually a wholesaler with a huge number of its own retail outlets”. Because Walmart supply chain has so many suppliers, as they sell a wide range of products they tend to do a lot of “Vertical integration” which is to own a major part of supply chain. Actually, based on types of integration of supply chain, they have various types of stores such as Walmart store U.S, Walmart Discount Stores, Walmart Supercenter, Sam's Club etc. So a supply chain integration connects the flow of work and information among all links in the supply chain to maximize efficiencies He also informed me that, “Walmart’s Supply chain begins with purchasing managers who determine which products will sell, and then forecasts estimate consumer demand for a product based on historical data, external drivers such as sales and promotions and changes in trends or competition”....

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