Supply chain management is one of the critical aspects of modern companies’ work. Moreover, big companies require more effective and structured approaches to working with their partners to ensure the needed products are delivered on time. Thus, Walmart is one of the modern leaders in the retail industry, with numerous suppliers and partners located in various regions and states. For this reason, the company requires a practical approach to organizing its supply chain and ensuring it functions effectively. Otherwise, the company will fail to meet clients’ demands and provide necessary products in time.
Walmart’s effectiveness and ability to preserve low prices are explained by the minimization of supply chain members. The company effectively collaborates with its partners and avoids unnecessary sophistication. Walmart accepts most of its products directly from the manufacturers (Walmart, 2022). Following this scheme, the firm does not need distributors, which simplifies the supply chain management and guarantees its increased effectiveness. The simplified scheme of Walmart’s supply chain can be presented in the following way:
The table demonstrates that there are no extra elements that might lead to increased sophistication or increase the risk of failure. Moreover, Walmart acquires the chance to control all channels and ensure there are no critical delays that might impact the whole company’s work. The given approach helps the brand to evolve and remain popular.
Analyzing the approach, it is vital to admit several essential aspects. First of all, the organization cooperates with partners in ways that promote higher engagement levels. Moreover, numerous enabling options emerge, leading to the generation of competitive advantage. Additionally, it avoids controlling upstream operations performed by suppliers. Instead, it focuses on the downstream supply chain to ensure that necessary products are delivered to retail stores (Chopra, 2019). Additionally, Walmart combines inbound and outbound logistics to deliver products to its centers and, at the same time, provide clients with necessary goods at their homes (Chopra, 2019). This approach helps to support the effectiveness of the selected supply chain model. Finally, from the perspective of macroeconomics, Walmart supports necessary activities such as looking for new partners to avoid a lack of products (Walmart, 2022). These factors explain the effectiveness of methods used by the corporation and its leading positions.
At the same time, Walmart considers sustainability issues to avoid the deterioration of its image. Its supply chain implies the reduction of waste by eliminating unnecessary stages, which helps to care for local communities (Walmart, 2022). As a result, the brand preserves positive relations with local clients. However, there are also some possible improvements, such as the digitalization of its distribution centers and the minimization of unwanted product supplies. It will help to increase the effectiveness of current operations and guarantee the brand remains capable of keeping low prices.
Altogether, supply chain management is an essential field of knowledge, providing companies with the chance to improve their relations with suppliers and guarantee that necessary products will be delivered on time. Walmart is one of the leaders in the retail sphere, which is achieved due to its effective supply chain strategy. It implies the reduced number of agents to ensure the spending will be reduced. It promotes better control over significant operations and helps to eliminate waste. At the same time, some improvements can be made, such as digitalization and increased attention to procurements to create the basis for new achievements and remain one of the leaders in the retail industry.
References
Chopra, S. (2019). Supply chain management: Strategy, planning, and operation (7th ed.). Pearson.
Walmart. (2022). Building our flywheel: 2022 annual report. Web.