WAL-MART

Wal-Mart



Wal-Mart

Importance of Effective Supply Chain Management

The management of the Supply Chain Management (SCM) is emerging as the combination of technology and best business practices worldwide. Companies have improved their internal operations are now working to achieve greater savings and benefits by improving processes and information exchanges that occur between business partners (Lee, 2000).

Supply chain management affects all factors of the shareholder value of a company which includes cost, customer service, productivity and revenues. In addition to the Strategic Planning, Supply Chain Management is the most popular methods for several operations of firms.

Nowadays, companies share the various tasks in the value chain, and around the globe. Despite huge tracks that cover the partial products, the companies jointly produce more and cheaper than a company that does the job alone. This happens because the dependence of firms rises with each other and due to the need for ever closer cooperation and more intensive exchange of information.

The extreme strategic importance of supply chain management for the competitiveness of businesses is evident in all sectors. At the same time, the gap between the average companies and leading companies such as Wal-Mart, Toyota, and Tesco becomes greater with the passage of time. The best are getting better and faster in almost all industries (Willcocks et.al, 2002).

Best SCM programs share common features, first of all, have an obsessive fixation on customer demand. Instead of forcing the products to market quickly sold may or may not meet the demands of customers or be complete financial failure, this type of initiative is plotted development objectives and producing products that are demanded by customers, minimizing, the flow of raw materials, finished products, packaging materials, money and information at each point of the product cycle. These objectives have been sought by industrial companies for several decades and have experienced management and successfully implemented modern techniques such as Just in Time (JIT), Quick Response (QR), Efficient Customer Response (ECR)-Managed Inventory Provider (VMI) and many more. These are the tools that help build a structure of robust supply chain (Phillip & Wurster, 2000).

The first dimension to globalization is globalization of market presence refers to the extent to which the company is targeting customers in all major markets for its industry throughout the world. The dimension is globalization of supply chain refers to the extent to which the company is accessing the most optimal locations for the performance of various activities in its supply chain

Company profile

Wal-Mart Stores, Inc. is a multi- source U.S., the largest retailer in the world, and its sales and number of employees, the largest in the world. Its business concept is the grocery store, low price and high volume. The company was founded by Sam Walton in 1962, was incorporated on October 31, 1969 and trades on the NYSE since 1972(Perrons, 2004). Wal-Mart is the largest private employer and the largest grocery retailer in the United States. . It also owns stores Sam's Club.

Wal-Mart operates in the UK with Asda brand in Japan with ...