Analyzing the effectiveness of Walmart’s Supply Chain Management

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 Introduction

It is broadly known that rather than targeting the operations, Walmart's supply chain

function has become an essential factor in ensuring that the company competes favorably.

According to (Kamath, 2018), companies currently put more emphasis on their supply chains as

a competitive advantage. Via the supply chain, services and products are offered to the final

consumers faster with the lowest price to meet their interests and maximize cost-effectiveness for

external and internal participating parties. Although in a competitive worldwide economy,

companies have to restructure their supply chain to adjust to the upcoming environment and take

the chance of the global market. Controlling the supply chain needs considering the whole

supply chain system of distribution and procurement, inventory, and logistics.

Currently, Walmart is among the top holding retailer, with over $480 million in revenues.

The Walmart store opened in 1962 in Rogers by Sam Walton has shown great achievements as

now it has over ten thousand retail outlets in around 30 countries (Kamath, 2018). Walmart's

success results from many factors, but the most effective as per the studies and analysis was done

on the company is the appropriate supply chain. Walmart is an achieving retailer with a cost-

effective and well-integrated supply chain. Walmart's retail and "Supply Chain Management"

(SCM) methods have become an added advantage favoring its growth over other companies

(Jawad, 2017). Information and data technologies initiatives are kept and used innovating to

ensure Walmart's SCM effectiveness. Despite the cost-effective, integrated, and speed supply

chain, the company still needs more effort to maintain its top position (Harsha, 2020). Walmart

has to restructure its SCM to adjust it to the three qualities: agility, incentive and incentives

alignment, and adaptability.

 Research questions

1. What are the main features of Walmart's supply and chain management success?

2. Walmart Supply and chain management aims to develop a new "Triple-A supply chain"

to sustain alignment, adaptability, and agility.

Research methodology

The study used a systematic review based on the various articles reviewing Walmart's

supply chain and designing a Triple-A supply chain. From the literature review, it is evident that

Walmart is aware of the integration of its supply chain. Walmart specifically has a supply chain

with a high degree of organization and function. New products or services, client relationships,

order fulfillment, external and internal relationships integrated into the farm to incr3ase the

disruptions caused by unexpected demand shifts or supply chain's supplies. To acquire

information concerning the supply chain, the study applied was to determine whether Walmart

was among the top companies with an effective supply chain in terms of operations, saving costs,

integration, and distribution. The mothed was suitable for the research since many types of

research have been done before concerning Walmart supply and chain management. Thus,

through entering to the internet "Walmart's supply and chain management," it was possible to

acquire information relevant for this study.

The study was based on secondary data from 2020. the study information was acquired

from 35 reliable journals, articles, and books, of which some were published online, and others

were copies. Primary data was not obtained as it required much expense and time to travel to

Walmart. The research included reviewing the theoretical framework and keenly studying the

sources explaining Walmart’s supply chain process. This was to discuss and investigate whether
Walmart owns a supply chain that is excellence in terms of distribution, operations, integration

and is still cost-effective. The enactment of looking for that objective was at first by indicating

how Walmart utilized, managed, and incorporated inter-organizational corporation and involved

“corporate operations performance.” Via this, the study continued later to research how Walmart

used from logistics system and integration of Walmart planning application resources into the

packaging to save costs and manage inventory. It also showed the logistics role in promoting

Walmart’s internal interactions and performance between saving costs and the business strategy

of each component.

Results

In the 35 articles reviewed during the study, more information was obtained concerning

Walmart's Supply chain management. Fifteen of the articles majorly explained the Collaboration

of Walmart and its different suppliers, playing an essential role in promoting Walmart's SCM's

effectiveness. They included SCM was effective in agility, saving cost, and integration. Five

resources added more information on the concerning effective Walmart's SCM. They indicated

the company was to integrate Triple-A supply. This is purposely to attain an ideal supply chain

in which the incentives aligning would be considered among the crucial elements. Information

technology techniques application also made the supply chain to be smooth. Fourteen articles

mentioned that the company adjusts to the inventory challenge due to interests' misalignment

between suppliers and Walmart. Also explained, the 21st century worldwide competitive

Walmart is required to emphasize this challenge and aim other supply chains comprising the

three qualities alignment, adaptability, and agility that was in one referred to as "The Triple-A

supply chain." On the other side, one source proposed that despite the importance of developing

Triple-A supply chain for Walmart and the other companies in the 21st century, it could also lead
to worse effects such as reducing customer satisfaction towards product availability and

Walmart's competitiveness. The source also argues that the Triple-A supply chain could both

establish long-term and short-term competitive advantages.

Discussion

Walmart's competitive method is to offer the best quality services and products at

affordable prices for their clients. One of the previous strategies that have been applied to

achieve this is lowering g the prices for customers and introducing discounts. As mentioned in

the articles, Walmart's supply chain management needs to emphasize implementing three

segments in the supply chain: procurement and distribution, inventory, and logistics

management. Walmart is a successful organization and has incorporated information technology

in its supply chain, promoting its main competencies (Cao et al., 2019).

Walmart has attained a top position in the retail market with the highest gradual growth

in its discount provision linkage via minimizing the more costs in operations and avoiding the

marginal expansions (Sarfo, 2020). Walmart became stronger due to having a strong relationship

with suppliers and providing enough platform for their products and services. Walmart considers

the consumers, demands and sustains in-stock level efficiency (Sarfo, 2020). It also allows the

suppliers to be alert concerning merchandise sales on run-time. Walmart's supply chain division

is one strength that has enabled it to maintain track of the services and products demand. The

supply chain also involves following other stores via an information system to ensure that all the

transactions are effectively done.

Integrating the supply chain is the primary means of Walmart's competitive advantage

and sustaining its top position. According to (Sarfo, 2020), integrated SCM is well defined when
the customers and suppliers collaborate to optimize their performance in distribution, final

products support and manufacturing. The supply chain thus is the SCM enabler and aids in

improving the supply chain effectiveness and competitive advantages for Walmart. According to

the (Nguyen, 2017), Walmart's value customers and all those with natural desires to the

company. Walmart deals with activities of storage and movement that regulate the product flow

to the final consumption from the raw material purchasing point. In Walmart, SCM offers the

whole chain with the possibility of enough information on the selling and buying process; hence,

Walmart focuses more on the SCM than on advertising (Nguyen, 2017). Walmart has SCM,

which is organizational and functional, and implementing the Triple-A supply will push the

company to maintain its top position in the retailer market. The chain will promote

1. The rate of response to short-term shifts in supply or demand quickly. Thus, able to

handle external interferences smoothly.

2. Adjustment of the supply chain to fit long-term changes

3. Modify the supply connections to products, strategies, and technologies.

4. Align the participants' interests in the supply chain with the purpose of better

performance.

Implications

i. The study informs more about Walmart's successful SCM.

ii. Walmart's cost-effective, integrated supply chain and speed are major elements for its

success, enabling it to be top in the retailer market.

iii. The research shows the importance of creating a Triple-A supply chain in the worldwide

competitive environment.
 iv. Integrating the supply chain is an essential prerequisite for a company to attain an

effective supply chain and improve its performance.

Conclusion

The essential implication of the study is that for a company to attain an effective supply

chain that develops both long-term and short-term competitive advantages, companies have to

restructure their supply chain to an integrated supply chain with three abilities that are "Triple A"

(adaptability alignment and agility). Incentives alignment among member partners is the

essential feature.

Limitations and recommendations

The study findings were only based on the existing literature, and how to establish an effective

supply chain for companies is a debate topic; hence information could be biased. Future studies

should focus on using more methods of study for accurate information.

 References

Kamath, R. (2018). Food traceability on blockchain: Walmart’s pork and mango pilots with

IBM. The Journal of the British Blockchain Association, 1(1), 3712.

Jawad, S. (2017). A literature analysis of Walmart’s supply chain excellence in term of

integration, distribution and operations.

Harsha, K. S. (2020). WALMART’S USE OF BLOCKCHAIN TECHNOLOGY TO ACHIEVE

HIGHER SUPPLY CHAIN EFFICIENCY. PalArch's Journal of Archaeology of

Egypt/Egyptology, 17(6), 4962-4969.

Cao, Y., Zhang, J. H., & Ma, X. Y. (2019). Optimal financing and production decisions for a

supply chain with buyer-backed purchase order financing contract. IEEE Access, 7, 119384-

119392.

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.

Sarfo, E. A. (2020). Supply chain management-The engine of today’s globalization and

industrialization.