GMBA6017 Supply Chain Management | Logistics Operation of Walmart

1.Provide an introduction with a summary of the scope and objectives of the case study/report, and the specific issues identified in relation to the sustainability of their supply network.

 

2. In the body of the report, deliver a structured analysis of the organisation's operations in relation to technology, people, supply networks, information/data, or sustainable performance.

Introduction

The primary purpose of the paper is to provide an effective understanding regarding the logistics as well as the supply chain management in the global market. For understanding, this process the case study of Walmart is being considered within the market globally.

Scope and objective

The scope of the paper is to provide effective understanding regarding the logistics as well as the supply chain management to provide the valuable working function. The entire process of logistics operation of Walmart utilise advanced technology for communication and also to gather information within the market globally.

The objectives are;

• To understand the logistics operation of Walmart
• To understand the supply chain network of the firm globally
• To evaluate the use of technology and various function within the market
• To understand the sustainability performance level of the firm

Issues identified in relation to the sustainability of supply network

The issues that are identified within the field of Walmart is considered to be the formation of the partnership alliances along with their impact on the choice of store location. It could be visualised that the entire working function and the activity of the field are being performed to understand the various issues within the market. Another issue that could be seen is the effect of the underdeveloped infrastructure on the logistics as well as the distribution process. The culture of Chinese business and also the influence of the supplier’s relationship with the business process to maintain their working function. 

Analysis of organisation operation

Technology

The technology of Walmart is highly effective within the field for maintaining the operational function. The information system of Walmart provides the competitive advantages throughout the world. It can be seen that the organisation own private satellite system and their information system is considered to be the second largest in the USA. Moreover, the use of the electronic data interchange that is EDI along with the system of point of sale (POS) Walmart has the effective operation to share their daily information regarding sales to the suppliers (Plambeck, 2007). The environment of Information technology in China is still in the nascent stage and for that most of the suppliers perform fax as well as telephone. It can be seen that all the suppliers within China can be either fully or the or partially integrated with the Retail Link system of Walmart. This technology allows the suppliers to maintain the report of daily sales and other information regarding the business development within the field. The information technology is also highly effective for the firm to maintain their logistics and their supply chain process within the market to deal with the suppliers (Plambeck, & Denend, 2011). Walmart is having the advanced IT system that is eventually utilised by the Chinese government to maintain their transportation as well as their IT infrastructure. The technological system of Walmart is highly active for the field and also for the suppliers.

People

Walmart is having the huge number of employees within the field. It can be seen that almost 1.6 million people are employed at Walmart in more than 6000 plus stores all over the world. The organisation also has more than 60,000 suppliers all over the world. Moreover, it can be viewed that since the year 1990, China has effectively opened their consumers market and at the present time they are having 1.3 billion people within the global market (Chuang, Donegan, Ganon, & Wei, 2011). The world is opening with the new concept of business and in this Walmart is having the most effective and valuable part in the world. In China, the lower middle-class people are considered to be the huge number that provides the high impact on the business process of Walmart within the field. Both the customers and the employees of the firm are highly essential for enhancing the business operational function of Walmart within the global market. Consequently, it can be also seen that the organisation have eventually pulled the people towards their project and their business process with the help of valuable operational activity. New suppliers or the new employee might create some of the problems for Walmart but their operational activity is quite effective to maintain the staff members.

Supply network

Walmart has eventually adopted some of the practice to maintain the concept of ‘green' in their supply chain management. The key practices are; identification of the goal and the new technologies, then the certification of environmentally sustainable products and also by providing the assistance for network partner to the suppliers (Natto, 2014). Some of the other practices are that they are highly committed towards the environmentally sustainable products, then by cutting out the middleman within the business and also restructuring the role of the buyers. Consolidating the direct suppliers and the innovation regarding licensing environmental are some of the more practice that is performed by a supply chain of Walmart. The organisation has originally adopted the green activity in their supply chain. The network of the supply chain of Walmart is considered to be quite big with a huge number of suppliers all over the world (Power, & Simpson, 2016). On the everyday basis, it can be seen that Walmart is continuously encouraging the suppliers working on the environmental as well as the innovation of supply chain regarding the effective technologies within the market. It can be seen that Walmart primarily focus on the logistic part of the supply chain and even maintain the data across the network of the supply chain.

Information

Walmart maintains their information and their data with the help of effective technology and also by managing the supply chain network. It can be seen that they perform regular reporting function with the help of POS and other technology to share effective information regarding the business operation globally (Wolf, 2014). This is highly essential for the business to understand the development process along with the logistics working function of the firm within the market. It could be easily visualised within the field that working function for the development of business allows the firm to maintain their operational performance level. The organisation also provides effective communication to the consumers that help in the creation of private-label brands regarding the products categories within the market. The information is also used to make a suitable decision regarding the business process within the field (Tachizawa, & Wong, 2015). In most of the cases in Walmart, it can be seen that all the information are primarily done by the process of self-report by the suppliers. Gathering the valuable and suitable information from the customers, suppliers and all the stakeholders of the firm allow them to maintain their activity within the field. In the global market, the communication and share of information become the crucial activity for Walmart to perform their operation in the most effective way.

Sustainable performance

Walmart is having the effective value for the sustainability of the market. It can be seen that the organisation have effectively maintained their sustainable value for the year 2007 and also for the year 2010 (Ji, Gunasekaran, & Yang, 2014). Their primary activity is to maintain the renewable energy by maintaining the global greenhouse gas then the alternative fuels and also logistics performance for the field. Another sustainable value of Walmart is zero waste where they are performing the activity to reduce waste and also maintain the packaging system in the business. They also maintain the sustainable products within the field to perform numerous actions in the field and deliver the valuable process. The sustainable products of Walmart are the textiles than the electronics, food, seafood and also the agriculture, then the wood and the paper and also chemical as well as jewellery (Qrunfleh, & Tarafdar, 2015). The sustainable performance of Walmart is highly effective for maintaining the numerous actors in the field and to deliver the valuable business within the field. Walmart maintains the third party maintenance for their sustainability management within the field to maintain the business operational activity.

Conclusion

The paper eventually concludes the fact that the logistics and the supply chain management of Walmart are highly effective in the global market. It is also evaluated that the organisation has effectively maintained their business with the help of valuable process regarding the operational activity in the field. It is also concluded that Walmart has utilised their sustainability regarding the working function and also the logistics department. They have maintained the value of the supply chain and the advanced technology to provide effective information for the business process.

References

Chuang, M., Donegan, J., Ganon, M., & Wei, K. (2011). Walmart and Carrefour experiences in China: resolving the structural paradox. Cross-Cultural Management, Vol. 18(No. 4), pp. 443-463. doi: 10.1108/13527601111179519

Ji, G., Gunasekaran, A., & Yang, G. (2014). Constructing sustainable supply chain under double environmental medium regulations. International Journal of Production Economics, 147, 211-219.

Natto, H. (2014). Wal-Mart supply chain management.“. International Journal of Scientific & Engineering Research, 5(1), 1023-1026.

Plambeck, E. & Denend, L. (2011). The greening of Walmart's supply chain. Supply Chain Management Review, 16-23.

Plambeck, E. L. (2007). The greening of Wal-Mart's supply chain. Supply chain management review, 11(5).

Power, D., & Simpson, D. (2016). Aligning Goals and Outcomes in Sustainable Supply Chain Management. In Sustainable Value Chain Management (pp. 161-172). Routledge.

Qrunfleh, S., & Tarafdar, M. (2015). Supply chain management practices–IT utilisation alignment: impact on supply chain performance and firm performance. International Journal of Business Information Systems 5, 18(4), 364-389.

Tachizawa, E. M., & Wong, C. Y. (2015). The performance of green supply chain management governance mechanisms: A supply network and complexity perspective. Journal of Supply Chain Management, 51(3), 18-32.

Wolf, J. (2014). The relationship between sustainable supply chain management, stakeholder pressure, and corporate sustainability performance. Journal of business ethics, 119(3), 317-328.