· What are Walmart’s supply chain strategies to operate domestically and globally with emphasis on how they plan and integrate supply chain components into a coordinated system? Does Walmart use key tactics such as risk pooling, inventory placement, integrated planning, collaboration, information sharing, or other tactics? If so, please describe. Are other tactics used? (LOG430).
Sample Solution
Walmart’s supply chain strategies are based on the integrated planning of key components such as inventory, logistics, distribution and technology. To achieve this level of coordination, Walmart utilizes a variety of tactics such as risk pooling, inventory placement and collaboration with suppliers to manage their domestic and global operations in an effective manner.
Sample Solution
Walmart’s supply chain strategies are based on the integrated planning of key components such as inventory, logistics, distribution and technology. To achieve this level of coordination, Walmart utilizes a variety of tactics such as risk pooling, inventory placement and collaboration with suppliers to manage their domestic and global operations in an effective manner.
Risk pooling allows Walmart to spread out any potential losses across its portfolio of suppliers, thus reducing overall profit volatility. Inventory placement is another key tactic used to keep merchandise costs low; by strategically stocking items in various stores or warehouses around the world they can reduce transportation costs associated with shipping long distances while still ensuring high levels of customer satisfaction.
In terms of collaboration with suppliers, Walmart has implemented information sharing programs which allow them to better understand demand forecasts as well as identify cost saving opportunities through joint efforts (e.g., buying raw materials together). Additionally, they have built a sophisticated Integrated Supply Chain System which enables them to track orders from beginning-to-end in real-time utilizing advanced data analytics capabilities.
Overall these tactics help Walmart coordinate their domestic and global supply chains efficiently and successfully – allowing them to maintain competitive pricing while minimizing disruptions during times when demand fluctuates significantly due to external factors (such as pandemics).
