Operations Management and Logistics Planning of Wal-Mart

Operations Management and Logistics Planning of Wal-Mart

Introduction

Wal-Mart is one of the leading American multinational corporations. It was founded by Sam Walton in 1962. Wal-Mart is very concerned about its operating costs. In every part of operation, it tries to lower down it. In addition to it, their primary goal is Every Day Low Prices. They are bringing the best and great shopping experience to their customers.

The prices of Wal-Mart vary every day. They purchase products in larger quantities from their suppliers and in this way; they get pleasure and enjoy their bargaining power. By doing this, they are able to give high discounts to their customers than other firms, and they produce good and high revenues in the shape of higher volumes.

Discussion

Logistics Operations of Wal-Mart

The competitive edge of the Wal-Mart is the logistics operations. They are keeping their operations very impressive and remarkable.

Wal-Mart has a number of distribution networks all over the globe. They have a very high-speed and receptive transportation system. They are extremely efficient enough in maintaining their collection of trucks and skillful staff of drivers. They hire experienced drivers who are capable of moving goods to and from the distribution centers and are able to do it in an efficient manner with full responsibility and liability. Moreover, they minimize their cost of fuel by asking their drivers to use the shortest or efficient paths to cover the distance. Therefore, in this way, the less fuel is used.

Wal-Mart maintains a strict watch over their drivers through the records of activities and actions made by drivers. Wal-Mart has a handbook for the drivers, and that consists of code of conducts, rules and regulations.

Supply Chain, Procurement and Distribution of Wal-Mart

Wal-Mart constantly highlights that they require decreasing their cost of purchasing and offering the great price ...