Describe the supply chain decision making framework (Presented in Slide 4, Chapt
ID: 343143 • Letter: D
Question
Describe the supply chain decision making framework (Presented in Slide 4, Chapter 3) for Walmart:
1-What is the competitive strategy and the supply chain strategy of Walmart?
2-Give examples of how Walmart has structured logistical supply chain performance drivers in order to achieve a good balance between responsiveness and efficiency
A Framework for Structuring Drivers Supply chain management includes the use of logistical and cross-functional drivers to increase the SC surplus Competitive Strategy Supply Chain Strateg)y Efficiency Responsiveness Supply chain structure istical Drive Facilities Inventory Transportation Example Wal-Mart Information Sourcinjg Pricing Cross Functional Drivers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3-4Explanation / Answer
1. being and becoming the market leader in the market itself is the core competency of walmart. It is a firm which always focus on proactive strategies, be the change according to customer reqirements, flexible to modify its operations according to market conditions, offer high varity of products with differentiation, quick response, and so on, all these comes under competitive strategy of walmart.
Supply chain process is another operaional strength to walmart, which distribute the products to customers around the globe in time only. They have a supply chain policy that no customer go back because of lack of stock, at the same time high volumes should not be entertain which result in capital strucking in the form of material. walmart highly focus on all related activities like placing orders, maintaining inventories, distributing them to the needed locations with additional benefits to the customers and finally offer a good quality product to the customers at less cost.
2. they are maintaining good ordering strategies, which maintains and encourages optimum inventories. In their inventory they maintain optimum amount of products to meet the market demand. once they realize the market pulse are modified or changed, they quickly react to those and deliver their obligations. The state of the art flow of information from all parties to the central management helps them to take quick decisions in right time. It focus on flow information as well as flow of material in right time only. It helps the firm to reach balanced supply chain strategies of material to the customers based on market demand.
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