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  • Essay / Wal-Mart Business Model - 1036

    IntroductionOne of the largest supply chains currently in the world is Wal-Mart. They are growing by leaps and bounds, steadily increasing sales, responding to customer demands while being publicly considered one of the pioneers of low-cost. This feat wasn't achieved simply by opening the doors and inviting consumers into any of its 11,000 locations worldwide. Wal-Mart offers more than 140,000 thousand stock keeping unit (SKU) products on its shelves. This happens through creative vision, with many partnerships that have combined to form a huge conglomerate. Business Model Wal-Mart's business model is based on a simple notion: providing products and services to customers when and where they want them. This way of thinking defines the company as an innovator, seeking ways that will not only perpetuate its strong hold on the retail industry, but also provide its consumers with low-cost product and supply options. Wal-Marts supply chain is a global dynasty, it is known for being effective, efficient, technologically advanced and logistically strong. These principles are some of the reasons why Wal-Mart is considered the premier supply chain in the retail industry. They have a distribution center located in a multitude of countries, this practice lends itself to bringing their products closer to consumers, allowing the warehouse center to turn over its total inventory more than 8 times per year (Saporito, 2013). The supply chain does a very good job of ensuring that communication lines across the entire network operate smoothly. Having suppliers who understand and communicate throughout each segment's chain and share data are strategies Wal-Mart uses to manage its chain. To achieve this, Wal-Mart places inventory replenishment at the center of paper inventory levels. Retrieved from http://www.inventorymanagementreview.org/2006/04/walmart_increas.htmlChopra, S. and Meindl, P. (2012). Supply Chain Management: Strategy, Planning, and Operation (5th ed.). Upper Saddle River, New Jersey: Prentice-Hall. Diermeier, D. (2011). Case study: Walmart. FT.Com, retrieved from http://search.proquest.com.library.capella.edu/docview/858311761?accountid=27965 Saporito, B. (April 9, 2013). The problem lies in the empty shelves at Walmart. Retrieved from http://business.time.com/2013/04/09/the-trouble-lurking-on-walmarts-empty-shelves/ Sethi, S. (May 8, 2013). The world of Wal-Mart. Retrieved from http://www.carnegiecouncil.org/publications/ethics_online/0081University of San Francisco. (2014). Walmart's Keys to Successful Supply Chain Management. Retrieved from http://www.usanfranonline.com/wal-mart-successful-supply-chain-management/