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¶ … logistic processes of Wal-Mart that can be improved over a course of short time span. The three processes which are identified for this assignment are discussed in detail with the recommendations to improve performance of the overall organization.
The organization that has been chosen for this project is Wal-Mart. It is an American retail corporation that operates on a global level. Wal-Mart is a large warehouse store and operates a number of large retail chain stores all over the world. Wal-Mart is chosen for this assignment because it is one of the largest public corporations and employs around two million people all over the world. It is indeed the biggest retailer in the world. Wal-Mart is one of the most valuable businesses in the world despite the recent decline in their profits in some of the global operations.
Wal-Mart was founded in the year 1962 by Sam Walton. It was listed on the New York Stock Exchange in the year 1972. The business still is controlled by the same Walton family. The family controls about 48% of the share in the business. Slowly and gradually Wal-Mart expanded all over the world with major success coming in the late 90s and early years of the previous decade. The main market for the business still remains the local U.S. Market which accounts for almost 50% of their profits.
Wal-Mart has more than 9000 stores all over the world which are operating with different names in 15 countries. It operates under the...
In United Kingdom it is named Asda, in Mexico it is Wale, in India it is Best Price, and in Japan it is Seiyu. In some countries like Canada, Argentina and Brazil it has fully owned subsidiaries. Global ventures for Wal-Mart have given mixed responses as in countries like China and UK they have been extremely successful while in South Korea and Germany they had to suffer great losses.
The three processes for the assignment chosen are the following:
Distribution Centers
Wal-Mart has over 150 distribution centers. The number of distribution centers is the most for any company all over the world which shows the scope of the process. These distribution centers provide a direct link to more than 60,000 trailers, 7500 drivers and 7000 tractors. These distribution centers are placed on strategic locations which help quick flows of products. There are a total of 9 distribution centers in America. These distribution centers keep the stocks in ample quantity, they even have disaster management inventory which are used in case of any disastrous situation in the country. These centers are open 24/7. Each distribution center is responsible for providing inventories to 90-100 stores that are within 200-mile radius. There has been a recent rise in the costs related to the distribution centers as they are huge in size and require a lot of other expenses in order to maintain…
References:
Norman, Al (2004). "The Case Against Wal-Mart." Raphel Marketing, p. 7.
Smith, H. (2006). Who Calls the Shots in the Global Economy?. PBS.
Will, G. (2006). "Democrats Vs. Wal-Mart." The Washington Post.
Logistics Planning Wal-Mart's growth and profitability to become the leading retailer across the world is partly attributed to its seemingly effective logistics system that has enabled the firm to manage its wide range of goods effectively and efficiently. Actually, the company's logistics system generates results that have enabled Wal-Mart to become one of the top revenue earning firms. In addition to being the top generating company in 2007, Wal-Mart was the
Robson Walton - Chairman of the Board of Directors of Wal-Mart Stores, Inc. Stephen P. Whaley - Senior Vice President and Controller Eric S. Zorn - Executive Vice President and President, Wal-Mart Realty III. INTERNAL ENVIRONMENT: STRENGHTS and WEAKNESSES A. CORPORATE STRUCTURE Wal-Mart's retail division is formed from four major subsidiaries: Wal-Mart Discount Stores, Wal-Mart Supercenters, Wal-Mart Neighborhood Markets and Sam's Clubs. (Wal-Mart Facts, 2007) Wal-Mart Discount Stores more than 1,000 in U.S. alone average
Wal-Mart faces an industry that is generally challenging, but its strength in the industry results in the industry being favorable. Wal-Mart's success is predicated on excellence execution of key components of the discount retail value chain -- procurement, logistics and merchandising. Wal-Mart has numerous strengths, but as befits the world's largest company it has relatively few weaknesses. In its intensely competitive businesses, Wal-Mart sees many threats, but there are still
Corporate Mission As the largest mass merchandiser in the world, Wal-Mart's work in supply chain execution, research, and policies defines best practices for the broader high volume retailing industry worldwide. Wal-Mart is comprised of three operating segments including the Wal-Mart stores, Sam's Club and the International Stores. The typical Wal-Mart discount store as 50 departments or more and a few are offering groceries in addition to apparel, fabrics, stationery and books,
The Price-Sensitive Affluents, Wal-Mart has learned (Wal-Mart Annual Reports) is more interested in finding an exceptionally good deal and not necessarily concerned about the shopping experience. This is particularly true as one of the strongest factors influencing the execution of their strategy, the emerging global recession during this timeframe, takes hold. Again as with the Price Value Shopper and the paradoxical purchasing patterns of the Brand Aspirational segment show,
Wal Mart Over the last several years, Wal Mart has been a story that is focused on continuing successes and challenges. This is because the company was impacted by issues such as employee rights, costs and fierce competition. Yet, at the same time, they were able to experience continuing increases in their bottom line results. This is despite the fact that consumer spending has remained stagnant in the aftermath of the