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No other mass retailer or trading community -- domestic foreign or global -- has developed a system even close to WalMarts capabilities in supply chain and distribution management and optimization From 1987 to 1993 WalMart spent over 700 million on its satellite communications network computers and related equipment However the possibility of competitors having allocated significant resources to developing state-of-the-art data warehouses that like WalMarts go beyond collecting point-of-sale data to drive replenishment The new data warehouses address and understand demographics individual stores and customer preferences To continue to maintain IT as a strategic advantage WalMart must continue development to further increase the effectiveness and efficiency of its supply chain management systems to advance the development of its distribution management system and add new capabilities as the technologies and customer service opportunities arise In looking at WalMart more closely we realize that since WalMart is a traditional company its value chain is its supply chain In order to strengthen its value chain we must focus on strengthening components in their supply chain As we further analyze the company WalMart maintains a win-win situation with its suppliers since they order large quantities and they represent one of the largest customers for their suppliers If we were to analyze WalMart like any other company and focus on its value chain rather than supply chain WalMart still comes out on top And more customer service Walmart is one of the biggest global retailers in the world operating in several different countries around the world with multiple formats all tied together by a state-of-the-art retail distribution system known as a Retail Link The corporation typically seeks market areas where there is a customer base of 5000 to 25000 and targets small to medium-sized towns in particular Historically the corporation avoids big city markets where land prices may be too high and competition from other large retailers much stiffer Instead Wal-Marts strategy has been to locate in peripheral
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