Wednesday, August 7, 2019
Key aspects of Wal-Mart Assignment Example | Topics and Well Written Essays - 500 words
Key aspects of Wal-Mart - Assignment Example By integrating all the players within the supply chain, conflicts can be avoided as all players are integrated into a leaner operating model which generates relatively similar results for all. (Ireland) Information exchange, effective communication and partnering at various stages of the supply chain can also ensure decision rights are realigned to provide space to every player in the overall supply chain of the organization. Some of the conflicts which can arise as a result of having different objectives include conflicts on the margins, delivery schedules, production quantities, freight charges etc. Since Wal-Mart also has an advanced level of IT system in place therefore it can share with its larger suppliers its data which can reduce such conflicts as vendors can easily track the production requirements and schedule the deliveries accordingly. A strong information technology system can help large firms to easily share the data with vendors to avoid any conflicts. One of the key b enefits achieved by Wal-Mart through its effective and efficient supply chain is that of the lower prices. Wal-Mart has been successful because of its ability to lower the prices for its end customers and this has only been achieved through a strong focus on cost cutting and achieving efficiencies in its operations. Since, supply chain is the key to the success of managing inventories at desired level therefore it becomes important for Wal-Mart to actually reduce costs and improve its supply chain to pass on the benefits of savings to its customers in the form of low prices.