Over the past ten years, Walmart has become the world’s largest and arguably most powerful retailer with the highest sales per square foot, inventory turnover, and operating profit of any discount retailer. In its transition from regional retailer to global powerhouse, the organisation has become synonymous with the concept of successful supply chain management.
Walmart’s supply chain innovation began with the company removing a few of the chain’s links. In the 1980s, Walmart began working directly with manufacturers to cut costs and more efficiently manage the supply chain. Walmart embarked on strategic sourcing to find products at the best price from suppliers who are in a position to ensure they can meet demand. The company then establishes strategic partnerships with most of their vendors, offering them the potential for long-term and high volume purchases in exchange for the lowest possible prices.
Walmart’s supply chain management strategy has provided the company with several sustainable competitive advantages, including lower product costs, reduced inventory carrying costs, improved in-store variety and selection, and highly competitive pricing for the consumer. This strategy has helped Walmart become a dominant force in a competitive global market. As technology evolves, Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency.
Supply chain management is moving the right items to the right customer at the right time by the most efficient means. By far no one does better than Walmart.
http://www.hbs.edu/faculty/Publication%20Files/13-039%20Nov%202012_612ce7e2-7f81-4eea-9126-3c0964f2be2f.pdf
http://www.researchgate.net/publication/234167019_WALMART_SUCCESS_IN_MEXICO_CANADA_AND_CHINA_GLOBAL_EXPANSION_STRATEGIES_ENTRY_MODES_THREATS_AND_OPPORTUNITIES
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