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    Write Up (Walmart)

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    Umar Gondal
    Walmart was founded in 1962 and has since grown to operate over 11,300 stores across 27 countries. It pioneered effective supply chain management practices to keep costs low and pass savings onto customers. However, Walmart is now shifting focus to expanding its online business to compete with Amazon's dominance in e-commerce. Walmart operates different types of online stores and has acquired other online retailers. It has also increased some prices and allowed suppliers to sell through Walmart's online platforms to generate more revenue in the face of changing retail trends.

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    Write Up (Walmart)

    Uploaded by

    Umar Gondal
    72 views2 pages
    Walmart was founded in 1962 and has since grown to operate over 11,300 stores across 27 countries. It pioneered effective supply chain management practices to keep costs low and pass savings onto customers. However, Walmart is now shifting focus to expanding its online business to compete with Amazon's dominance in e-commerce. Walmart operates different types of online stores and has acquired other online retailers. It has also increased some prices and allowed suppliers to sell through Walmart's online platforms to generate more revenue in the face of changing retail trends.

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    Write Up(Walmart)

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    Walmart was founded in 1962 and has since grown to operate over 11,300 stores across 27 countries. It pioneered effective supply chain management practices to keep costs low and pass savings onto customers. However, Walmart is now shifting focus to expanding its online business to compete with Amazon's dominance in e-commerce. Walmart operates different types of online stores and has acquired other online retailers. It has also increased some prices and allowed suppliers to sell through Walmart's online platforms to generate more revenue in the face of changing retail trends.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    72 views2 pages

    Write Up (Walmart)

    Uploaded by

    Umar Gondal
    Walmart was founded in 1962 and has since grown to operate over 11,300 stores across 27 countries. It pioneered effective supply chain management practices to keep costs low and pass savings onto customers. However, Walmart is now shifting focus to expanding its online business to compete with Amazon's dominance in e-commerce. Walmart operates different types of online stores and has acquired other online retailers. It has also increased some prices and allowed suppliers to sell through Walmart's online platforms to generate more revenue in the face of changing retail trends.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Walmart

    Walmart was founded by Sam Walton in the year 1962. He opened his first store in Rogers, Ark. On 31st
    October 1969, the company was incorporated as Wal-Mart Stores. Key success factor was the guidance
    of Sam. Presently they are operating in twenty-seven countries with more than 11,300 stores with 2.2
    million employees, and have e-commerce stores under 58 banners. It is said that Walmart’s extreme
    success could be attributed to its effective supply chain management. However, now Walmart is slowing
    down its expansion to increase their online business.

    Retail Industry is growing rapidly all around the world, and especially online retail business. There are
    different facts given in the case-study, like the sales of US retail stores were $6 trillion in US, and out of
    that $520 billion was of e-commerce, with Amazon having more than 40% market share in it.

    This case also talks about the development of the supply chain of Walmart. Wal-Mart’s efficiency in
    supply chain management was due to two key factors namely automated distribution center and the
    computerized inventory system. This brought in minimizing a lot of time the later not only reduced the
    checking out time but also recorded the transaction which is much needed to know envisage demand.
    Demand forecast is a constant issue which could be a threat when not handled properly. This is due to
    the fact that demand prediction is always inaccurate. Aggregation would be a remedy for this
    unpredictable demand.

    Walmart’s focus has always been to sell goods at a lower price to the customers. Walmart with its
    power distribution system made quite innovative changes like reducing paper work, reduced its lead
    time drastically, used bar codes to bill which recorded inventory levels and the access to the stock levels
    served as the valuable data for management. The movements of products are systematic and
    strategically aliened in a way that it reduces the most valuable time and cost and results in efficiency.
    Wal-Mart had a very effective rather responsive and flexible distribution system to transport goods from
    docks to stores.

    In US Walmart started 3 different kinds of online stores, for different purposes, like selling the products
    which already existed on physical stores, selling through 3 rd parties, and sell branded products. They also
    acquired many other e-commerce stores, in different countries selling different niche products. These
    steps had a very positive impact on their sales. They also increased their prices for niche customers. The
    main idea of Walmart was to offer lowest prices, and target low-income families. On the other hand,
    Amazon targeted high income customers. By coming in online retail, Walmart also increased their selling
    prices. That’s what the CEO also said that they don’t just want to save money of people, but also save
    their time.

    Walmart had a better infrastructure than Amazon, and their big suppliers also opened their offices for
    dealing their sales through Walmart. They also allowed the suppliers to sell their private-label products
    which also resulted in high margins for Walmart.

    During negotiations with the suppliers, Walmart insisted on single price invoice. However, it also helped
    the suppliers to forecast the sales, and improve the overall performance. In 2019, Walmart also allowed
    its big suppliers to do their advertisement inside Walmart stores, which helped the suppliers to increase
    their sales, and Walmart to generate additional revenues.

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