Local

distribution Low cost

centers manufactured
Keep Strong goods
inventory supplier
low network

efficient
distribution Buy in large

Everyday Low
Prices

In house
trucks
and RFID
drivers
segmentation

low
operational
self
expenses
checkout
Summary
• Walmart's everyday low prices are possible because of their efficient distribution, low operational
expenses, and low cost of manufactured goods.
• Walmart has efficient distributions because they utilize local distribution centers to deliver goods to
stores faster. By localizing distribution centers, they can keep their inventory low, which saves on
inventory costs. Lastly, they use their own trucks and drivers, so they have more control over the
deliveries of their goods.
• Because of Walmart's efficient distribution, they can have lower operational expenses. To reduce
these expenses even further, they have self-checkouts in all their stores, so they do not have to spend
money paying cashiers. They also use a RFID tagging systems to track goods efficiently, which cuts
down on operational expenses as well.
• Lastly, Walmart's operational expenses are kept low because they segment on a specific type of
consumer: low to middle income. By doing this, they focus on specific goods, therefore strengthening
their supplier network. This network is also strong because Walmart has such a huge customer base,
so they can buy goods in large. This not only keeps the cost of manufactured goods low, but also gives
Walmart more negotiation power with their suppliers.
Current Article
• https://www.wsj.com/articles/walmart-ranchers-team-up-on-beef-pr
ocessing-plant-to-ensure-supply-11661915609?mod=Searchresults_p
os1&page=1
• Walmart acquired a minority stake in Sustainable Beef LLC as part of
Walmart’s push to develop a network of meat-processing plants
providing Angus beef products for its stores. 
• Walmart can buy their goods at a very low price from manufacturers
because of their strong network. Investing in the Angus beef industry
is just another way Walmart is making that network stronger to bring
value to the customer.