Walmart – a Supply Chain Management Success
Wal-Mart: A Supply Chain Management Success
Contemporary Logistics
ASCM 632
University Maryland University College
July 24, 2016
Abstract
Wal-Mart first opened its doors in 1962. Its founder Mr. Samuel Walton had envisioned a retail store that would be considered a one-stop shop for its customers. He wanted to bring products into his store faster than any other retailer and to provide those products at the lowest cost possible.
Over the next 50-year span many competing retailers sprung up throughout the United States hoping to be as successful as Wal-Mart. Competing stores such as Target and Kmart have not been able to have the worldwide recognition as well as the profit that Wal-Mart has been able to maintain.
Wal-Mart has enhanced its technology over the years and is currently using a Radio Frequency Identification (RFID) system to better track the status of their products through out the sales cycle. They have been able to stay at the top of the market for they are always looking for innovative ways to improve their current supply-chain and to save money for their consumers. The low cost products that they have are one of the main reasons consumers continue to go back to the retailer to shop. Another reason would include their selection of products as well as the continuously stocked shelves. Wal-Mart has been able to master the supply chain management process that provides the items to the stores with in 48-72 hours upon depletion of the current stock. This is primarily due to the placement of different distribution centers. Wal-Mart tends to place their distribution centers in close proximity to between 6 and 10 stores. This is an amazing turn around time, which can be referred to as a just-in-time delivery system.
These are some of the reason’s that Wal-Mart has been named the top retailer in the United States and one of the top retailers in the World (Basker, 2007). Many organizations strive to have mastered the supply chain process and to have the same understandings as they do.
Wal-Mart: A Supply Chain Management Success
Mr. Samuel Walton first introduced the nation to retail giant known as Wal-Mart on July 2, 1962 with the opening of the first store in Rodgers, Arkansas (Wal-Mart’s History Timeline, 2015). He envisioned a store with great values and great customer service and believed that true leadership depends on providing willing service, which was the principle that Wal-Mart