Introduction
The Walmart company was founded in 1962 by Sam Walton. It is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. The company is the world’s largest retailer, with more than 11,000 stores in 27 countries (Gray, 2021). The Walmart company has a very complex logistics system that is used to move goods and products to its customers. The company has a variety of methods that it uses to move products, and it has a vast network of suppliers and transportation providers. The main goal of the Walmart logistics system is to get products to stores as quickly and cheaply as possible. To do this, the company relies on a combination of logistic management systems such as seamless integration, radio frequency identification (RFID) technology, and inventory management system to gain competitive advantages over its competitors.
Walmart’s Logistic Management Systems
Walmart’s seamless integration logistics management system gives the company a competitive advantage by allowing them to track its inventory in real time. This enables them to quickly restock shelves as needed and prevents them from having to over-purchase inventory, which would otherwise be wasteful and lead to increased costs (Pandey et al., 2021). Additionally, it allows them to identify and respond to trends in customer demand more quickly, which helps them keep prices low and attract more customers.
RFID technology has definitely given Walmart a competitive edge in the retail industry. RFID tags can be placed on individual products or on cases or pallets of products. When an RFID scanner is passed over an item, the tag sends a signal to the scanner that identifies the product and its location. This information is then transmitted to a computer system that records the inventory movement of each product. RFID technology has helped Walmart reduce theft and pilferage considerably. In fact, Walmart reports that RFID has helped them save more than $3 billion in losses due to theft and pilferage (Pandey et al., 2021). The use of RFID has also allowed Walmart to become more efficient in its distribution and stocking processes, which has resulted in lower costs due to eliminated cases of theft and pilferage within the company.
There are a few different ways that Walmart’s inventory management system gives them a competitive advantage. The company has built bigger warehouses, enabling it to purchase goods in bulk, thus enabling the company to enjoy economies of scale such as huge discounts and free transportation. The two economies of scale advantages reduce the company expenses, which aids the organization in attaining price leadership, thereby making more sales than their competitors. The availability of the stock due to larger inventories also prevents the company from experiencing cases of stock out that can result in lost sales and loss of customers. Walmart also uses advanced technology to track sales and stock levels in real-time (Pandey et al., 2021). This means that they can always make sure they have the right amount of products on hand without worrying about overstocking or running out during busy periods. Similarly, these inventory trackers also alert the company when the stock reaches the point of replenishment to avoid stock-out cases.
Conclusion
In conclusion, the usage of Walmart is an international retail organization. The company applies radio frequency identification technology, seamless integration, and an inventory management system to acquire a competitive advantage. RFIDs device helps in the tracking of the products, which is essential in preventing theft and pilferage, which contributes to the company’s profit. Similarly, the adoption of seamless integration has also assisted Walmart in real-time inventory tracking, which is crucial in shelf refilling in time. On the other hand, the inventory management system has aided Walmart in creating spacious warehouse floors that can accommodate bulky goods. Buying in bulk has enabled Walmart to enjoy economies of scale, thus allowing it to attain cost leadership, thus making more profit.
References
Gray, G. R. (2021). Logistics. In Blockchain Technology for Managers. Springer, Cham. 129-133.
Pandey, R., D, D., Jayant, J., Vashishth, K., Nikhil, N., Qi, T., Kee, D., Mei, T., Xin, R., and Qhi, L. (2021). Factors influencing organization success: A case study of Walmart. International journal of tourism and hospitality in Asia Pacific, 4(2), 112-123. Web.