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walmart (1) – Kopya-converted Essay

Paper type: Essay Pages: 3 (684 words)

Views: 504


Furkan Can ???r?kc? – 11552013

Furkan Kaplan -115520

Walmart Stores Inc

•482 billion dollars in 2015

•They have 2.2 million employees in World Wide

•11.000 stores

•27 countries

•260 million customers

•Everyday low price

Walmart China

•Entered China in 1996 – Shenzhen,Guangdong

•416 Retail Stores

•404 Supercenters

•12 Sam’s Club

•More than 100.000 employee

•Improving Distribution Centers

•Staple Stock Flow

•Cross Dock Flow

Lesley Smith

• Key factor of successful for Walmart China

Walmart China has needed to convert its suppliers from a

direct – to – store delivery to centralized shipping through a

Walmart Distribution Center (DC).

What were the problems

associated with direct – to – store model? How will the Walmart

DCs provide advantage/add value to the company’s supply


• Direct to store

• 15.000 – 20.000 stock keeping units

• 20.000 suppliers

•Improvements of Supply Chain

•Staple Stock Flow – United States

•Cross Dock Flow – Europe

•DCs provided Several Value -Added Activities

•Reduce Overall Supply Chain Costs and Improve Customer Service

Staple Stock Flow – Cross Dock Flow

•Cross Docking

• Lower Construction

• Capital

• Handling Costs

• Ability to Handle An Infinite Number of SKU

• Inefficient with A High Number of Stores – Pick Path Becomes Too Large and Complex

•Staple Stock Flow

• Simple Scheduling

• Allows to Pick For Stores

• Keep in Stock

• Volume for Seasonal and Direct Import

What are the major logistics functions discussed in

your textbook (Chapter 12)? Briefly explain each

function and find relevant examples from the case.

Logistic Functions

• Warehousing

• Inventory management

• Transportation

• Logistics information management

Lesley identified two options for Walmart China’s new perishable distribution center network: “staple stock

flow” and “cross dock flow” models. In a cross dock system, product was shipped to the distribution centre

in full truckloads, unloaded from inbound trucks and loaded directly onto outbound trucks for same -day

delivery to stores.

Shipments to stores were consolidated at the distribution centre and shipped on the basis of individual

store needs therefore, distribution centres provided several value -added activities to retail supply chains

that could reduce overall supply chain costs and improve customer service levels, by reducing

transportation costs and optimizing inventory levels. The distribution centres also enabled consistent

service and product fill -rates to every store regardless of its distance from suppliers and sales performance,

resulting in increased in -stock positions and higher sales

1 -Walmart DCs allowed suppliers to ship products using full truckloads, full container loads or in

economic order quantities. Shipments to stores were consolidated at the DC and shipped on the

basis of individual store needs (e.g., forecasted requirements or customer orders) . Therefore, DCs

provided several value -added activities to retail supply chains that could reduce overall supply

chain costs and improve customer service levels, by reducing transportation costs and optimizing

inventory levels

We had over 20,000 suppliers , many of them distributors . Despite our large size, we had no leverage because

most suppliers only received orders for volumes for six or so stores . As an example , a multinational supplier

produced 18 items for us from its Chinese plant . However , this supplier sold exclusively to 144 distributors ,

which meant that we needed to place orders to 144 different sources for same 18 items , all with low order

volumes . Often we did not meet minimum order quantity and the distributors would not deliver, affecting our

order fill rates that cascaded into low in -stock and on -shelf availability . Or , we would overcompensate by

ordering more inventory than needed , which affected our carrying costs . There was a general sense that this is

the way it has always been and that it would likely stay this way .

Between early 2012 and mid -2015, Lesley and the supply chain team made several changes that transformed

the supply chain at Walmart China . The centralization of the buying organization in Walmart China reduced the

number of regional buying offices and suppliers for both dry and perishable products ; at the same time, the

supply chain team significantly improved the volume shipped to the DC network, by strengthening the capacity

and capabilities of the DC network and collaborating with suppliers to change their shipment models . The initial

capital investments in infrastructure focused on the supply chain for dry products (ambient DCs ); and , in 2015,

Lesley started to focus on the design of the perishable DC network

As a result, walmarts aims to reduce product costs and provide a

good service with investments in supply chain and distribution


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walmart (1) – Kopya-converted. (2019, Dec 20). Retrieved from https://studymoose.com/walmart-1-kopya-converted-best-essay

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