Global Supply Chain - Walmart

Background

Wal-Mart Stores Inc., branded as Wal-Mart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. Based on the table, (Refer to Appendix Figure 1), Wal-Mart is the largest retailer in the world, preceding companies like Carrefour and Metro. It is also the world's third largest public corporation and according to the Fortune Global 500 list in 2012, the biggest employer in the world with over two million employees. After all these years, Wal-Mart is still a family-owned business.

Wal-Mart’s motto is “save money. Live better.” . Wal-Mart is well-known for its low-cost structure and currently has 10,800 stores around the world in 27 countries, under 69 banners. They believe in helping people save money on groceries so they can live better. Wal-Mart also believes that everyone should be able receive the same benefits, which lead to setting up e-commerce website in 10 countries. Wal-Mart commitments to provide customers with the lowest cost have helped shape Wal-Mart into the business they are today.

Wal-Mart has more than 245 million customers and members visiting their 10,800 stores every week. Wal-Mart fiscal year 2013 sales approximately hit $466 billion. Wal-Mart reportedly employs around 2.2 million associates around the world.

For this case study, we are mainly focusing on Wal-Mart at the United States as it is based there.

SC Operations

In the process of procurement, Wal-Mart reduces the purchasing cost as low as possible in order to offer the best price to its customers. Wal-Mart bypasses all intermediaries and purchase goods straight from manufacturers. To ensure transparency, Wal-Mart would meet up with vendors to understand their cost structure to receive the best price they can offer. After coming to an agreement with the manufacturers, Wal-Mart would establish and maintain long-term relationship with the vendor.

After negotiating with the manufacturers, supplies...