Introduction
Virtual logistics service provision entails organizing logistical systems in an efficient and easy to use manner. When using the system, it is important to note that the ‘information’ element of it is separated from its physical element.
In this regard, what makes virtual service provision unique is the fact that ownership and control of the logistical resources happens online (Clarke, 1998, 1). With this analysis in mind, this study seeks to analyze and point out areas of improvement in the way Wal-Mart utilizes its virtual logistics service system. This will be done in two phases as observed below:
Assessment
Considering Wal-Mart has over 3,800 stores in the US alone and an even greater number overseas, the company has found it increasingly important to manage its growth (Kuehne-Nagel, 2010, p. 3). For this purpose, the company has put in place a number of fourth party logistics (4PLs) providers. The fourth party logistics providers give it a flexible nature to enable it manage growth and handle large inventories (Kuehne-Nagel, 2010, p. 3).
The organization particularly decided to put in place the virtual logistics service because it needed the system to help it quickly start up operations; give it the flexibility it needed to accommodate massive operations; estimate its distribution costs; create an infrastructure which could enable it properly manage seasonal demand and finally improve its inventory systems to be more efficient and reliable. These areas also define where the systems is applied.
Improvement Phase
Though Wal-Mart enjoys immense advantages from its 4PLs, it does not mean the system does not have any room for improvement. Actually, Khosrowpour (2005) has observed that the system can be effectively improved through increasing the use of ICT tools in the organization.
In this regard, Wal-Mart can improve the input of more progressive information into its logistic systems to ultimately make it develop more sophisticated logistic networks which will ultimately improve the efficiency of the system and the overall security of the system.
It would even be more beneficial for the organization to further use appropriate ICT tools such as multimedia telebridges, virtual integrated services systems, and other similar tools which would also improve the speed and overall efficiency of the system (Kuehne-Nagel, 2010, p. 4). From this analysis, we can see that the efficiency of improving the logistics system does not only rest on the handling on the information but rather on the use of the latest ICT tools.
This means that Wal-Mart will benefit more from the adoption of the latest ICT tools in the market. Also, considering the efficiency of the information depends on its input, its timing, preciseness and reliability, Wal-Mart can further improve the efficiency of its four party logistics (4PLs) by making sure the information fed into its logistics system is up to the minute (Khosrowpour, 2005, p. 260).
Conclusion
Wal-Mart has been a practical beneficiary of the advantages 4PLs logistic service gives to organizations. The system has been able to empower the company to control most functional areas of its operations. However, this study identifies that if it improves the reliability and precision of the information it feeds into its system, more benefits are going to be derived from it.
The basis for this observation stems from assertions that the logistics system is as good as the information fed into it. Finally, this study observes that the company’s virtual logistics service can be further improved if the latest ICT tools are used. If these recommendations are adopted by the organization, more improvements are likely to be noted in the working of the overall logistical service systems for the company.
References
Clarke, M. P. (1998). Virtual logistics: An introduction and overview of the concepts. International Journal of Physical Distribution & Logistics Management, 28 (7), 486 – 507.
Khosrowpour, M. (2005). Advanced Topics in Information Resources Management. New York: Idea Group Inc (IGI).
Kuehne-Nagel. (2010). Kuehne + Nagel Implements Logistics Solutions for World’s Largest Retailer. Web.