Technology and Logistics

Technology and Logistics

Introduction

Wal-Mart has renowned itself to be the world's largest and preferably most strong retailer with an increasing sales per square foot, operating profit, and inventory turnover of any discount retailer. Wal-Mart operates its business from regional retailer to global store house under effective system of supply chain with latest technologies. It operates under highly significant technologies with effective logistics operations.

Discussion

Wal-Mart initiated with an aim to give access to customers with the goods which they required when and at whatever times. Wal-Mart then relates its concentration on establishing cost structures which enables them to provide low pricing every day. The essential element in order to make this goal achieved was to make the way the company replenish inventory the main concern of its strategy, which greatly dependent on logistics technique called as cross docking. Cross docking enables transfer of products from suppliers to Wal-Mart's warehouses, where they are immediately shipped to stores in order to save wastage of time in inventory. This strategy largely enables Wal-Mart's to overcome costs heavily and they used those savings towards their customers with largely competitive pricing. Wal-Mart then developed its focused on establishing a more highly structured and advanced supply chain management strategy to enhance and exploit this competitive advantage. Technology plays a significant role in enhancing Wal-Mart's supply chain, considered to be a basis of their supply chain. Wal-Mart is considered to be the largest information technology infrastructure of all times in private corporations in the world. This innovative technology and network enables Wal-Mart to precisely and effectively estimates demand, track and identify inventory movements and levels, create highly efficient transportation paths, and controls effectively relationships with customers and service response logistics.

Global supply chain management is vital for every organization as the removal of procedural and informational blockage can ...