Wal-Mart’s stores before opening the first Wal-Mart’s. It

Wal-Mart’s history
is one of success, innovation and leadership. Wal-Mart was founded by Sam
Walton, who is owned several Ben Franklin franchise stores before opening the
first Wal-Mart’s. It started with a single store in Rogers, Arkansas in 1962
and has grown to what is now the world’s largest and arguably, the most
emulated retailer. Some researchers refer to Wal-Mart’s as the industry
trendsetter. Wal-Mart’s is a retail
giant stocks products made in more than 70 countries and at any time, operates
more than 11,000 stores in 27 countries around the world, and manages an
average of $32 billion in inventory. Wal-Mart operates each store, from
the products it stocks, to the front-end equipment that helps speed checkout,
with the same philosophy: provide everyday low prices and superior customer
service. Lower prices also eliminate the expense of frequent sales promotions
and sales are more predictable. Wal-Mart’s has invested heavily in its unique
cross-docking inventory system to replenish inventory efficiently. Cross
docking has enabled Wal-Mart’s to achieve economies of scale which reduce its
costs of sales. Wal-Mart’s leverages its buying power through purchasing in
bulks and distributing the goods on it’ own. Wal-Mart guarantees everyday low
prices. Wal-Mart’s supply chain management has their own strategy to
provided the company with several sustainable competitive benefits.


As we know, today
Walt-Mart’s being a success supply chain. What is the strategy that make the
company being a success in supply chain? Walt-Mart’s has their own strategy to
improve their company. There are some strategy or tips that make Walt-Mart’s being
a success company in logistic. Firstly, tips that make Wal-Mart’s being success
is Wal-Mart have their own mission that is Wal-Mart’s want to give customers
with the goods they wanted at any time and wherever they wanted them. It make
customer like the company and being faithful
with the company. It also can increase the demand. Customer will be happy
because easy to get anything that they want. Second strategy is the
company then want to offer low everyday pricing by developing the cost
structure. As we know every people want to save their money, always want a good
product with a low cost, and other. Save money is very important thing to make
sure we have emergency money and it also to make sure we have better life in
the future. In addition, after that Wal-Mart’s focused on developing a many highly
structured and a good supply chain management strategy to exploit and enhance this
competitive advantage and be market leadership position. Moreover, Wal-Mart’s
strategy is use a fewer link in supply chain. Even it still early, Wal-Mart’s
supply chain management can give a success target. At Rogers, Ark in 1962 is
the first start of Wal-Mart’s. The story is Sam Walton is owned of several Ben
Franklin franchise store before opening first Wal-Mart’s. Wal-Mart’s modernization
began with the company to cut out a little of the chain’s links.

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 For cut cost and more efficiently manage the
supply chain is by Wal-Mart’s  working
directly with manufacturing, In 1980. Wal-Mart’s have their own warehouse.
Vendor Manage  

Inventory(VMI) who is being responsible to
managing Wal-Mart’s product in Wal-Mart’s warehouse. So it can save a cost. For
the result, Wal-Mart can expect 100% order fulfilling
market in trading. Wal-Mart’s be Retailer of the Decade in 1989 by save
costs estimate at 1.7% of its cost of sales. After that, the company became
more active. Strategic vendor partnerships is also one of the Wal-Mart’s
strategy. Strategy to find supplier who can give the best price and get demand.
Then Wal-Mart’s be partnerships with the vendor and promise to buy in long-term
with best price. Furthermore, Wal-Mart’s improve their material flow by created
a network to align the global suppliers, warehouses, and retail stores in one
organisation. “Wal-Mart’s whole thing was collaboration,” Crowell said. “That’s
a big part of what made them so successful.”. In addition, strategy Wal-Mart’s
be success in supply chain is by cross docking as inventory tactic. Cross docking is means as the ways in logistics
management to not waste the time to unloading the material from an incoming
trailer trick and straight to loading the materials into outbound trucks with a
small or no storage in between the transfer process. This process helps to
change the type of transport, this helping to sort out goods intended for
different locations. It is also a good ways to combine from two or more
different place into one transport container or in the same place. This
strategy can save time and money. Cross docking strategy help Wal-Mart to
streamline the supply chain from the started point until the final point. Cross
docking has reduced the operating cost, handling cost and maximum reduce the
inventory storage cost. It has also help Walt-Mart’s to deliver the product
faster to their customer. So the customer will get their product fast and on



Technology is a
thing that make our work ease. It makes process and operation being easy in an organisation.
So in this case we must know what is the innovation that Wal-Mart’s do to
improve their operation and process? Wal-Mart’s use technology to cut cost by make technology become an
innovator in the way stores track inventory and restock their shelves.Thechnology
is the key for Wal-Mart’s to be the larger retailer, Wal-Mart have the larger information
technology. The company was a pioneer in bar code scanning and analyzing point
of sale information which was housed in its massive data warehouses. Wal-Mart
launched its own satellite network. Strategic systems such as Retail-Link,



 spearheaded by industry luminary Kevin Turner,
enabled data integration and sharing between Wal-Mart and its suppliers. These
systems also enabled the concept of vendor managed inventory. However, not
every technology project in which the company invests significant resources
turns to gold as Wal-Mart encountered missteps with its RFID technology
initiative. Despite the less than stellar ROI and supplier adoption rate of
RFID, that effort demonstrated the willingness of its technology to push the
envelope in exerting tremendous changes on business processes not only within
Wal-Mart but throughout the industry. Storm clouds are on the horizon as
consumer preferences change from “big-box” brick and mortar stores to online
retail platforms such as Amazon. To counter Amazon’s online dominance, the
company must continue to invest in its digital know-how. Adding new
capabilities to its online presences and refreshing its digital properties will
be a requirement in order to keep pace in a shifting industry dynamic.Technology
makes, Wal-Mart continues to focus on innovative system and process to make
their company be more better in its supply chain and achieve greater
efficiency. In the past, Wal-Mart’s inventory operation and supply definitely
provides valuable learning points that businesses can take and apply to their
own operations. Even Army Col. Vernon L. Beatty, who commanded the Defense
Distribution Depot in Kuwait, spent a year with Wal-Mart as part of the
military’s Training With Industry program.

my opinion, our local retailer not suitable to follow Wal-Mart’s strategy. This
is because have many factor of problem that make our local retailer can’t
follow Wal-Mart’s strategy. Research conducted by Ali et al (2008) on the
logistics industry in Malaysia found several constraints that limit the
logistics development in this country. Among the constraints were lack of
follow up actions after certain meetings or issues raised, lack of
sophisticated management techniques among the supply chain companies, problems
in information technology (IT) system with regard to the costly EDI pricing and
charges due to in transparent marks-up by freight forwarders and overall
performance and functionality of the system, lack of skilled and trained
manpower, no single established source of logistics data and information
including lack of information of the industry players, facilities, services and
capabilities of the sectors, lack of research and development of the industry,
lack of regulatory forms to facilitate the industry, lack of dissemination of
information with regard to the development and expansion of the logistics
industry. This information was important because through the information
obtained, the practitioners could then suggest on how they could participate in
the new business opportunities (Thong, 2007). Also, one of the main


problems faced by the local
service providers is the inability to participate in international logistics
activities as a result of limited IT linkage, overseas corporate network and
capital investment (Ibid). Logistics plays a vital role in economic systems and
in everyday life. Given the significant cut back in manufacturing and labour
costs, reducing logistics costs has become an increasingly important task for
managers. On account of the complex supply chains and globalization, the cost
of logistics operations could comprise as much as half the value of general
commodities. However, technological development offers new cost cutting
opportunities (Dianwei 2006, 591). According to Bowersox, Rodrigues &
Calantone (2005), global logistics costs in the year 2002 were estimated at USD
6,732 billion, and corresponded to 13.8 per cent of the world’s GDP in 2002
(Bowersox et al. 2005, 9-10) .The level of logistics costs is heavily dependent
on the industry, but in general tends to be high in logistics-intensive operations
such as food, metal, chemical and paper manufacturing (Memedovic et al. 2008;
Farahani, Asgari & Davarzani 2009, cited in Rantasila and Ojala 2009)

conclusion, after Wal-Mart founded and opened in 1962, it was grown
tremendously. Until it become a good giant company in logistic. This company
have their own strategy to be a good company in logistic. Wal-Mart’s company
has uses a good pricing strategies to keep profit increasing and to keep consumers
walking in their door.  By make
sure their three important strategies successfully, Wal-Mart has become from a
single store until be a biggest company and the biggest retailer in this world.
Wal-Mart was create an operational model from the lowest cost which will
increase the margin of profit on the financial statements, this is the cost
management  strategy by Wal-Mart .In
addition, the growth management strategy had expanded radically around the
distribution center  and dragged Wal-Mart
into the right direction of investment. Lastly, by creates a great workplace
environment which full of self-improvement, respects and competition and all
associates to work more efficiency also the one people management strategy. It
also for created an opportunity for people to build-up experience from the
low-rank position to the high-rank position. Furthermore, strong management in
these three plans had changed Wal-Mart be the great company in the world with
the highest of employees worldwide and had also give advantages to millions of
people around the world by change unnecessary cost into low-cost products