Walmart, retail giant of world, has for the past ten years been the largest and powerful retailer earning higher sales per square foot, inventory turnover, and operating profit than any other discount firm. How has Walmart managed to accomplish this economical feat of genius? It’s secrets lie in their successful and effective supply chain management strategy. This has led to lower production costs and competitive market pricing. Lower production costs means lower costs and competitve market pricing means increased revenes in the long run and increased consumer share. Focusing on providing custoers with goods whenever and wherever, Walmart worked on improving logistics to offer low everyday pricing. The key: replenish inventory via a method called cross docking. Products, shipped from suppliers to warehouses and then to stores without a long inventory wait time, reduce costs that are passed on to the consumer in savings. With this competitive advantage, Walmart focused on supply chain integration, the collaboration of suppliers, manufacturing, warehousing, and distribution to stores in the supply chain in order to maximize efficiency and produce a lean supply chain. Walmart’s powerful strategy has given the company sustainble competive advantages that have allowed the corporation to stay the giant it is today.

Referenced Sources: 

1) http://www.usanfranonline.com/wal-mart-successful-supply-chain-management/

2) http://www.asaresearch.com/ecommerce/supplychain.htm

3) Image: http://www.thegreenmarketoracle.com/2010/06/walmart-and-hps-sustainable-supply.html

4)Walmart Logo: http://marshall-showmethemoney.blogspot.ca/2009/11/walmart-shifts-to-supply-chain-finance.html