Walmart is one of the most well-known retail corporations in the world, with thousands of stores in different countries. The organization’s supply chain is considered one of the most efficient in the field, with the company being able to deliver products timely and at the minimum total cost (Lu, 2018). This post will consider Walmart’s supply chain relative to the effectiveness, efficiency, relevance, and sustainability (EERS) model.
It can be argued that Walmart’s supply chain is an example of a successful EERS model. Walmart utilizes cross-docking logistics practices to deliver goods on time to the customer’s desired location (Bowersox et al., 2020). In cross-docking, the products from inbound vehicles are loaded directly onto outbound vehicles, reducing delivery time (Lu, 2018). Moreover, as this approach decreases the cost of storage, cross-docking contributes to the supply chain being highly efficient. In addition, Walmart employs radio frequency identification tags (RFID) and smart tags to continuously track products throughout every link in the supply chain and update inventory effectively (Lu, 2018). These tools contribute to supply chain efficiency by minimizing the quantity of raw materials and products acquired. Using these instruments adds to the relevancy of the supply chain, as the delivery of products is managed through and is responsive to customer demand. Furthermore, the Walmart supply chain is sustainable, with such initiatives as licensing environmental innovations and certifying environmentally friendly products being supported in the company since 2005 (Pawlicka & Bal, 2021). Overall, the supply chain under consideration is high-performance and delivers in different aspects of the EERS model.
In summary, Walmart’s value proposition encompasses both the traditional effectiveness and efficiency and the additional dimensions of sustainability and responsiveness within the supply chain. It can be concluded that the supply chain value proposition of the company delivers in all dimensions and is highly flexible as the tools used by the organization are aimed at improving several dimensions simultaneously. Moreover, Walmart is exceptionally customer-oriented, with all the components of the EERS model aiming to satisfy potential and existing clients.
References
Bowersox, D. J., Closs, D. J., Bixby Cooper, M., & Bowersox, J. C. (2020). Supply chain logistics management (5th ed.). McGraw-Hill.
Lu, C. (2018). Walmart’s successful supply chain management. QuickBooks Commerce. Web.
Pawlicka, K., & Bal, M. (2021). Supply chain finance and challenges of modern supply chains. Logforum, 17(1), 71−82.