Topic > Wal-Mart Business Model - 1036

IntroductionOne of the largest supply chains currently in the world is Wal-Mart. They are growing by leaps and bounds, steadily increasing sales, meeting customer demands while being publicly seen as one of the pioneers of low cost. This feat was not accomplished by simply opening the doors and inviting consumers to one of its 11,000 locations worldwide. Wal-Mart offers more than 140,000 thousand stock-keeping products (SKUs) on its shelves. This is done through creative vision, with many partnerships coming together to form a huge conglomerate. Business Model Wal-Mart's business model is based on a simple idea: providing products and services to customers when and where they want them. This way of thinking defines the company as an innovator, seeking ways to not only perpetuate their strong hold on the retail industry but also provide consumers with low-cost options for products and supplies. The Wal-Mart supply chain is a global dynasty, known for being effective and efficient, technologically advanced, and logistically sound. These principles are some of the reasons why Wal-Mart is considered the leading supply chain in the retail industry. They have distribution centers located in a multitude of countries, this practice lends itself to having their products closer to consumers, which allows the warehouse center to turn over its total inventory more than 8 times per year (Saporito, 2013) . The supply chain does a very good job of ensuring that communication lines work properly throughout the network. Having suppliers who understand and communicate across each segment of the chain and share data are the strategies Wal-Mart uses to manage its chain. To achieve this goal, Wal-Mart has inventory replenishment at the center or... center of paper inventory levels. Retrieved from http://www.inventorymanagementreview.org/2006/04/walmart_increas.htmlChopra, S., & Meindl, P. (2012). Supply Chain Management: Strategy, Planning, and Operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall.Diermeier, D. (2011). Case Study: Walmart. FT.Com, Retrieved from http://search.proquest.com.library.capella.edu/docview/858311761?accountid=27965Saporito, B. (2013, April 9). The problems lurking on the empty shelves of Walmart. Retrieved from http://business.time.com/2013/04/09/the-trouble-lurking-on-walmarts-empty-shelves/Sethi, S. (2013, May 8). The world of Wal-Mart. Retrieved from http://www.carnegiecouncil.org/publications/ethics_online/0081University of San Francisco. (2014). Walmart's Keys to Successful Supply Chain Management. Retrieved from http://www.usanfranonline.com/wal-mart-successful-supply-chain-management/