Chapter 1 Assignment
Supply Chain Management is very important to an organization as it will allow growth and management control. It is necessary for an organization to follow an effective supply chains in order to be successful in the global market. For example Wal-Mart has been around since 1962 and with a lot of dedication they have made a difference too many of their customers. It has opened thousands of stores in the U.S and internationally. Throughout the years the business has helped customers save money and reside better. As I visited Wal-Mart website the first impression is that they are very organized and have a variety of products to offer online and in store. By doing so Wal-Mart has more than 3,000 suppliers such as Kraft, Nestle, Kellogg, Leapfrog and many more that help them serve their business and customers’ needs. When it comes to purchasing Wal-Mart associates need to determine which products will sell and this is where supply chain operations will focus in demand planning, forecasting and inventory. An aspect of Wal-Mart logistic is its fast and responsive transportation system. Wal-Mart move goods to and from distribution centers in their trucks with skilled truck drivers. Wal-Mart prices are competitive because they buy in large quantities that transportation from one end to another is not as costly. Wal-Mart buys goods from different suppliers throughout the world and it makes it easier for them to use bigger trucks. Also, drivers follow the most efficient route to use less fuel.
In order for Wal-Mart to track its inventory it suggested for his suppliers to use universal bar codes. However, that was replaced with the Radio Frequency Identification technology in order to enhance technology. The purpose