Logistics and supply chain management: A case study on Walmart

Introduction

Supply chain and logistics management is the activities of planning, controlling and executing he product’s flow across the international market where the suppliers and distributors focus on managing their customers by delivering the right and quality products at the right place within right time (Monczka et al., 2015). Supply chain management is mainly the management flow of the organisational products and services involving the storage of final products and raw materials, maintaining the inventory and manage warehouse for final products which are effective activities under an efficient supply chain management process, where the suppliers and distributors take care of the quality and durability of the products and services proficiently through managing logistics (Laudon, and Traver, 2016). The aim of the study is to explore the existing problem and its impacts on the profitability of the business of Walmart as well as recommend some suitable suggestions so that Walmart can develop effective supply chain management strategies in a cost effective and efficient way for meeting the customer’s requirement.

Background of the company

Walmart is an American multinational retail corporation which is efficient in operating across the globe by expanding their business through e-commerce and opening stores at different market place. It operates in the chain of hypermarkets discount departmental stores ad grocery stores where total numbers of stores in this year of 2019 are approximately 11348. The products of the company are such as electronics, movies and music home and furniture, clothing, accessories, homewares, health and beauty, photo finishing and other crafts, grocery ad sporting goods where the organisation is successful in delivering quality products to the customers as per the needs and preferences of the customers which in turn provides an opportunity to the organisation to improve satisfaction level of the customers. Total revenue in 2019 is 514.415 US Dollar, where total number of employees, employed in Walmart is 2.2 million where strong employee’s base of the company is also other strengths for serving a better products and service to the customers for meeting their expectations (Walmart, 2019a). It is necessary for the company to manage their supply chain and maintain distribution network across the international countries for managing the operational activities and satisfying the customers by delivering the right and quality products according to the market trend, latest innovation and customer’s preferences at right time and right place (Walmart, 2019b).

Impacts of supply chain management issues on the company’s profitability

The purpose of managing supply chain and logistics operations is to maximise the overall values of the organisation by reducing existing and upcoming uncertainty and risks in the market (Laudon, and Traver, 2016). It helps to improve the business process and enhance customer service quality where the organisations can satisfy the customers through managing their supply chain and logistics operation as it in turn helps to deliver the quality products safely to the customers within effective time as per the needs and preferences of the customers. Increasing profitability and competitiveness are also other purpose of supply chain and logistics management through which the company can strengthen their customer’s base and secure future sustainable development (Yu et al., 2016).

In the recent era of globalisation, there are several supply chain issues which have adverse impacts on the organisational operational activities thus deteriorating its reputation and profitability. The main issue is high cost of supply chain and logistics management where the cost for the customers for getting the final product becomes higher. In this regard, there is negative impacts on the organisational values in the market. the profit volume of the brand and retention of the customers for higher cost of management are the adverse impacts for such supply chain issue (Yu et al., 2016). Lack of management of customer service and complexity deteriorates the service of Walmart which also affects the sales volume of the company. Another risks of poor supply chain and logistics management is lack of safety and security of the products which is also another negative factors for the firm that deteriorate the customer’s expectations. Lack of efficiency of the suppliers and distributors is another negative factor or a serious issue for which the organisation fails to manage green supply chain and efficient distribution network in long run (Hugos, 2018). These are the major challenges which deteriorate the brand values in the market where the suppliers and distributors fail to manage their supply chain and logistics operations efficiently. This further affect the service quality of the organisation. the company starts losing their customers and the long-term customers become dissatisfied which adversely affect the organisational values in the competitive international retail market. The profit volume and sakes percentage may drop for such issue of managing supply chain where lack of knowledge and skilled workforce, the organisation cannot manage their operational activities across the globe, and they fail to deliver quality products at the right place proficiently.

Evaluating the role of e-business and e-commerce

Innovation in technology and creativity of the engineers influence all the multinational corporate firms to implement effective e-commerce business strategy for digitalise the business and manage their supply chain for enhancing customer satisfaction. Information and Communication Technology (ICT), implementing GPS system, developing mobile application for tracking the distribution of the products as well as Enterprise resource Planning (ERP) are the latest innovation technology through which the managers can manage their supply chain and logistics operations of the firm. The major e-commerce activities of the business are such as product management, product portfolio management and order management through inventory control, where ERP system are helpful for managing the warehouse through computerised system as well as cloud computing through which it is possible to manage the quality and quality of the products (Ayers and Odegaard, 2017).

Additionally, the GPS system can be useful for the organisation Walmart to track their suppliers and distributors for managing their operations and maintain the ordering process for delivering the final goods and services at right place within right time (Ayers and Odegaard, 2017). Moreover, the mobile application is another innovative way under e-commerce of the business which provides a scope to the customers to track their orders from warehouse to final destination which builds strong customer’s relationship and provides a scope to enhance customer service quality. User management is hereby another activity under e-commerce through which it is possible to manage their customer over online business activities (Mangan, Lalwani, and Lalwani, 2016). Personalisation service and payment service through online activities are also posisbel through e-commerce or e-business activities where the suppliers band the distributors can manage their customers well and deliver the quality products efficiently. In this regard, e-commerce plays a crucial role in managing supply chain and logistics operations of the company, where the suppliers can manage the customer’s requirements in which the customers purchase the product through e-commerce, and they need the product ta minimum time. In this regard, the online activities through mobile application and ERP system, the suppliers can manage their warehouse and inventory control for despatching the products and deliver it successfully to the customers (Mangan, Lalwani, and Lalwani, 2016).

ICT in this regard also plays a significant role in enhancing the internal and external communication, which are required for gathering information and managing big data of the customers and interact with them directly through online sites and mobile application and ICT. Business to business interaction is hereby helpful for improving cooperation and communication which in turn provides a scope to manage their supply chain and logistics operational activities strategically (Laudon, and Traver, 2016). Internet and computerised system developed the back-end process of the company where skilled workforce can handle the customers and manage the market demand through maintaining the suppliers and distributors at different market place across the globe. Product design and development, procurement, distribution, after-sales service support, marketing and production, inventory can be controlled through e-commerce business activities where the latest technology, bog data analysis and innovation are contributing factors for maintaining online activities and serve the customers in a better and unique way (Mangan, Lalwani, and Lalwani, 2016).

Recommendations for developing low cost and highly efficient supply chain management

The objective of the business of Walmart is to maximise their values in the market through managing inventory control, warehouse, product portfolio and customers by enhancing the e-commerce activities, so that Walmart can gain high market share across the international competitive retail industry. Through developing efficient supply chain and logistic operational strategy, it is possible for the organisation Walmart to resolve the above-mentioned existing issue and enhance their performnace in the market where the firm can deliver the quality products and efficient services to the customers at right time and right place. In this regard, Walmart needs to develop automatic purchase through ERP system where the customers can place their order with one click option and manage their orders efficiently. The mobile application of Walmart needs to be developed also, through which the customers can track their orders and can see the distribution of their products from warehouse to final destination and this will be helpful for the firm to manage their supply chain and develop cost effective and efficient distribution network. In addition to these, encouraging teamwork and improving communication through implementing ICT is also necessary for Walmart to enhance internal external communication. providing efficient training and development program to all the employees, suppliers and distributors are also essential for the brand Walmart to improve their skills and abilities to manage the customers well.

In order to improve the utilisation of e-commerce activities, the company Walmart tries to manage the customers through online activities and software where the mobile application and ERP system provides an opportunity to Walmart to access inventory and manage the purchase decisions of the customers. In addition to this, Just in Time (JIT) production and inventory management control are also necessary for Walmart to implement in the organisation through which it is possible to reduce cost of operational activities and improve its efficiency. The company Walmart also needs to develop Electronic Data Interchange (EDI) and Electronic Funds Transfers (EFT) for managing the customers and make their payments through online through safety and security. Transfer of personal information and managing the customer’s personal data through big data analysis and could computing also provides an opportunity to Walmart to manage their customers and build strong relationship with them by enhancing trust and loyalty. Moreover, transparency and accountability need to be maintained in the e-commerce business and supply, chain management where the customers and other organisational representatives can share important data and information with each other and manage their customers well with safety and security. Through the above-mentioned strategic planning for Walmart, the business can resolve the existing issue of inability of suppliers and inefficiency of the distributors, upcoming risk factors, lack of safety and poor customers service. The strategic planning is effective for Walmart to enhance their operational activities in the market and manage their performnace for serving the customers in an efficient and cost-effective manner.

Conclusion

Walmart as a famous retail chain needs to resolve the existing issues such as costly operational activities of supply chain and logistics management, inefficiency of the staff members and lack of safety in delivering the product through developing effective supply chain and logistics management and utilising the latest technological innovation and creativity and e-commerce activities so that Walmart can meet their objective of creating brand values in the international retail industry. Through developing automation process of ordering and tracking as well as providing efficient mobile application to the customers are effective for Walmart to manage their customers. Providing efficient training and development program, managing transparency and accountability and enhancing communication through ICT will be effective for developing efficient supply chain. Additionally, implementation of ERP system, GPS and JIT would be effective for Walmart to control inventory and manage warehouse to handle the customer’s order and meet their requirements and preferences in a cost-effective way.

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