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Comprehensive Logistics Performance at Wal-Mart Essay

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Updated: Apr 2nd, 2022

Assessment

It is a common wonder to many people how Wal-Mart charges low price on its products and continues to make huge profits. A number of reasons exist to ascertain this assertion. However, the major reason is the aptitude to acclimatize to ever evolving competition in the market place. Wal-Mart has utilized efficiency in delivering low prices for their goods (Long, 2003, p.76).

The efficiency has been ingrained in several situations, among the major one is how they manage to manufacture product around the world and bring them to retail outlets located around the world. The efficiency of a faultless logistical system that makes it possible for products to be shipped from any location around the world has contributed to Wal-Mart’s ability of reliability.

The Logistical system at Wal-Mart is flexible when it comes to determining suppliers. Suppliers have grown to rely on Wal-Mart dependability and flexibility in paying competitively than other buyers buying similar products (Hines, 2010, p.78). When Wal-Mart identifies a potential supplier offering lower prices, other suppliers tend to lower their prices; this is because, the logistical system of Wal-Mart has the capability of handling transition seamlessly.

The logistic systems at Wal-Mart have been streamlined and capable of handling and transporting volumes of supplies from one point of supply to the other at less or minimal costs. This capability of logistical systems is evident because of the size of the company.

Because they buy many suppliers across the world, they therefore use bigger trucks hence saving fuel of going back and forth. In case shipping is done to convey materials or products from one point to the other, Wal-Mart endeavors to award them huge discounts in relation to volume of products or material conveyed (Hines, 2010, p.112).

Implementing Comprehensive Logistics Performance at Wal-Mart

Wal-Mart can encompass several logistics practices to ensure they have a comprehensive logistical system. Many of the strategies they can embrace is using leverage technology. Leverage technology can help Wal-Mart track its products and services. Further, the technology understands everything about the product i.e when a product is sold, the duration it takes before it is sold and the place where it is sold (Hines, 2010, p.124).

The technology comprises of tools that have ability to capture, view and transform data acquired into knowledge base. Wal-Mart can recognize this technology to perfect its flow of goods and services. Besides, the power is changing from traditional “Push” to “Pull”. This means that, the product or service of a manufacturer has no effect in driving the end transaction on the customer (Williams, 2008, p.36). The ultimate transaction in supply chain is what is considered more important.

Secondly, Wal-Mart would benefit by conducting training to its supply chain users. By providing knowledge to actual users of supply chain, they get empowered to handle any issue related to the system (Long, 2003, p.48). For example, users can be taught how to fill and complete delivery notes, maintenance providers can be well informed on how to bid for equipment repair contracts or partners can be trained in integrating a service such as route planning, service measurement and so on.

Lastly, Wal-Mart can use intermediaries to limit risks. Intermediaries or business practices that impede mission statement has to be identified and handled accordingly. Innovation should be embraced in areas such as identifying low cost suppliers and avoiding businesses that charge higher prices on their products and prices (Long, 2003, P.74).

Conclusion

When all stated practices are well incorporated, Wal-Mart will have a reliable and flexible logistical system, whereas continuing to maintain low prices on their products.

Reference List

Hines, T. (2010). Logistics Management. Oxford: Elsevier

Long, D. C. (2003). International Logistics: Global Supply Chain Management. UK: Blackwell.

Williams, G. C. (2008). Implementing SAP ERP Sales & Distribution. New York: McGraw-Hill

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IvyPanda. 2022. "Comprehensive Logistics Performance at Wal-Mart." April 2, 2022. https://ivypanda.com/essays/comprehensive-logistics-performance/.

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