International Supply Chain Management-Walmart
Walmart’s main elements of a global supply chain are the company’s distribution network, transportation network, and logistics management. The company operates more than 11,000 stores worldwide and has a massive inventory to support its retail operations. The company uses a combination of air, ocean, and truck transportation to move products to and from suppliers and stores (Nguyen, 2017).
The company relies on its supply chain partners to get products from suppliers to stores worldwide. It involves placing orders with suppliers, picking them up at their facilities, and transporting them to the distribution centers (Durand & Wrigley, 2009). Once at the distribution center, products are sorted and placed in inventory for store shipping. Walmart’s systems send products to stores closest to customers; orders are placed. Global shipping of products is complex, but Walmart has developed a system that does this efficiently and cost-effectively. Customers can order products from Walmart’s website and have them shipped to their homes anywhere.
There are several advantages and disadvantages to expanding operations or sourcing goods internationally (Nguyen, 2017). Some key benefits include lower labor costs, access to new markets, and the ability to get products to customers quickly. Walmart has expanded its operations into many new markets by sourcing products from countries like China, India, and Mexico. Walmart has also benefited from the lower labor costs in some countries where it sources goods. Key disadvantages include higher transportation costs and political risk in foreign countries.
Durand, C., & Wrigley, N. (2009). Institutional and economic determinants of transnational retailer expansion and performance: a comparative analysis of Wal-Mart and Carrefour. Environment and Planning A, 41(7), 1534-1555.
Nguyen, T. T. H. (2017). Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century. Journal of Economics & Management, 29, 102-117.
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Primary Discussion Response is due by Thursday (11:59:59pm Central), and Peer Responses are due by Saturday (11:59:59pm Central). Direct Task Response: Within the Discussion Board area, write 200-250 words that respond to the following questions
Research a real-world company, such as Walmart, Starbucks, or Apple, that has expanded operations internationally. Write 200-250 words on international supply chain management using the company that you researched as your focus. Your response should answer the following questions:
- What are the main elements of a global supply chain organization?
- What are the steps involved in producing an order and shipping it to the customer in an international environment?
- What are some advantages and disadvantages of expanding operations or sourcing goods internationally?
- What are the main elements of a supply chain, from manufacturing to the distribution of goods on an international scale?
- What steps are involved in producing and shipping an order to the customer?
- What are some of the advantages and disadvantages of global operations?
Responses to Other Students: Respond to at least 2 of your classmates with a reply of 50-100 words about their Primary Task Response regarding items you found compelling and enlightening.
Use the following to guide you in your responses:
What did you learn from your classmate’s posting?
• What additional questions do you have after reading the posting?
• What clarification do you need regarding the posting?
• What differences or similarities do you see between your posting and classmates?
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