Praxis Paper - Supply Chain Management at Walmart

Praxis Paper - Supply Chain Management at Walmart

Introduction to the organization

Walmart is the largest retailer in the world and the brand of choice for most markets. It provides all you need under one roof in literally every sense of the word. The company is very well recognized both locally and internationally for its EDLP (Every Day Low Pricing) model. It is currently operational in nine countries across the globe. The company's mass merchandising operations serve its customers primarily through operation of three segments. The Walmart Stores segment includes its discount stores, Supercenters, and Neighborhood Markets in the United States. The Sam's club segment includes the warehouse membership clubs in the United States. The Company's subsidiary, McLane Company, Inc. provides products and distribution services to the retail industry and institutional food service customers. It now has more than 4,700 stores including some 1,475 discount stores, 1750 combination of discount and grocery stores and 538 membership-only warehouse stores (Smith, 2009).

The paper discusses the supply chain management at Walmart. The company is a maestro and is an inspiration for most supply chain managers across the globe. However, there are still some challenges faced by the company. The paper discusses the feats and challenges related to supply chain, and present a workable strategy to be followed. These insights were gained on the basis of primary as well as secondary data described in the following section of the report.

Data collection strategy

The data for the paper has been collected using primary as well as secondary sources of information. The secondary data was collected from up to date information from various online sources such as newspaper articles and marketing and supply chain management journals. The primary data, on the other hand, was collected through conducting interviews. Two separate interviews were conducted with Mr. Pedro Ruvacalba, Assistant Store Manager at Walmart San Antonio TX and Mr. Paul Bland, Receiving Manager at Walmart Houston, Tx.

Walmart's global supply chain

The supply chain management of a global company also has to be global. Walmart is a pioneer in determining the global supply chain trends. To begin with, the retail giant is coercing companies manufacturing in the US to shift their production units to overseas countries where they can get benefit of lower wages. In an interview with one of the Supply chain Managers at Walmart Gary Maxwell, he suggested that Walmart has shifted from world class supply management strategy to best-in-market supply chain strategy. The latter strategy means that the company has a customer centered approach (TrueDemand, 2012). It is always thinking of the customer's needs and wants and keeps tab on the external environment. This means that the company knows precisely when the market has matured and takes proactive actions to retain its margins.

Assistant Store Manager, Mr. Ruvacalba explained the company has a policy of conducting a comprehensive market analysis. It examines the localities where it wants to open, studies the real estate cost structure, the policies and regulations that pertain to the ...