INSTITUTE OF FINANCE MANAGEMENT
INDIA INSTITUTE OF FOREIGN TRADE
MASTERS OF BUSINESS ADMINISTRATION IN INTERNATIONAL BUSINESS
IT APPLICATION IN MANAGEMENT
PREPAIRED BY MOHAMED H. MWASARA
WAL-MART’S SUPPLY CHAIN MANAGEMENT.
A. About Wal-Mart
Wal -mart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's largest public corporation, according to the Fortune Global 500 list in 2014, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Wal-Mart remains a family-owned business, as the company is controlled by the Walton family, who own over 50 percent of Wal-Mart. It is also one of the world's most valuable companies. The company was founded by Sam Walton born in 1918. This phenomenal growth of Wal-Mart is attributed to its continued focus on customer needs and reducing cost through efficient supply chain management practices. In the early 1970s, Wal-Mart became one of the first retailing companies in the world to centralize its distribution system, pioneering the retail hub-and-spoke system. Under the system, goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ (hub), from where they were dispatched to the individual stores (spoke). The hub and spoke system enabled Wal-Mart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities and distributing them through its own logistics infrastructure to the retail stores spread across the U.S. B. Wal-Mart’s procurement
Wal-Mart has always emphasized the need to reduce purchasing costs and offer the best price to the customer. The company directly procured from manufacturers, by passing all intermediaries and therefore reducing the costs in-between. Wal-Mart finalizes a purchase deal only when it is fully confident...
Please join StudyMode to read the full document