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Essay on Logistical Efficiency at Wal-Mart
The retail and wholesale sector includes more or less all companies that produce products for end consumers. Examples are groceries, white goods, garments and furniture.
What distinguishes the Wal-Mart logistics is the large number of items and seasonal. Freight movements comprise a mixture of inset goods to production facilities and distribution to stores and end consumers over a widespread area. By combining rail, road and inventory services, Wal-Mart logistics offers flexible logistics solutions with short lead times. Wal-Mart’s logistics centers are equipped with advanced inventory control systems that are integrated with all outlets online.
Wal-Mart can also offer some refinement in their logistics centers. In some cases, they are also a partner to other.
Operating as a strategic extension of their team, Wal-Mart logistics system help turn supply chain into a competitive advantage by: (Evans, 2000).
- • Decreasing process and cash-to-cash cycle times
- • Postponing inventory acquisition through Vendor Managed Inventory (VMI) programs
- • Increasing turns and reducing inventory by synchronizing the movement of goods and information
- • Improving aftermarket customer service through their service logistics / critical-parts distribution programs
Warehouse Management
Wal-Mart’s logistic team operates distribution centers using sophisticated systems that minimize labor costs and maximize visibility to inventory and order status. Their ability to serve across whole markets with standard processes avoids the operational and administrative inefficiencies of managing multiple providers with different processes and systems (Robert, 2004). Wal-Mart’s specialized warehouse management services include:
- Management of electro-static discharge (ESD) requirements
- Design and management of high-security areas
- Final product configuration and testing
Distribution
Wal-Mart manages transportation from the point of origin to the point of consumption on a global basis. Their non-asset-based model assures the right solution is based on their needs. Features of their transportation management capability include:
Unmatched understanding of international trade compliance and related administrative requirements....
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