ANALYSIS ON WAL-MART LOGISTICS

Many people wonder how Wal-Mart is able to charge such low prices and
continue to make a profit. There are several factors in their business model that
contribute to this ability, but a big one is their ability to adapt to an ever-changing
global marketplace.

Some criticize Wal-Mart's efforts to deliver to their customers a quality

product at low prices, but in reality, Wal-Mart has been able to deliver low prices
by being efficient. This efficiency is present in several areas but one of the most
important places is how they are able to manufacture products all over the world
and get them to retail outlets, which are also all over the world. This ability
requires a flawless logistical system that allows product to be shipped anywhere at
a moments notice.

One of the keys to Wal-Mart's effective logistical system is the flexibility

that it has when choosing suppliers. When Wal-Mart negotiates with suppliers and
the suppliers know that Wal-Mart will only pay the most competitive prices. This
is because it is very easy for them to find another supplier of that particular
material with a lower price and very few logistical problems. This gives Wal-Mart
a huge amount of leverage when dealing with suppliers.

If a particular supplier knows that a company has found a lower price, it will
lower its price accordingly. However, if the supplier also knows that it will be
incredibly difficult for the company to make the proper adjustments to ensure a
smooth transition to a different supplier, then they will be less inclined to lower
their price as much. This is not how existing suppliers deal with Wal-Mart; when
they see that Wal-Mart has found a supplier that will give them a lower price, the
current suppliers lower their prices accordingly. They know that Wal-Mart's
logistical system can handle transition seamlessly and therefore they gain no
additional leverage since it won't be difficult or costly for Wal-Mart to choose
another supplier.

Another reason that Wal-Mart's prices are so competitive is because they

buy in such large quantities that transportation from one end of the supply chain to
another is not as costly for additional units. This aspect of the logistical system
does not come from skill or expertise it simply comes from the sheer size of the
company, but this is still a factor. Wal-Mart buys so many supplies from different
places throughout the world, that they have the luxury of using bigger trucks and
using less fuel to go back and forth. Also if by chance they have to use shipping
services to transport material from one location to another, Wal-Mart will give
them so much business that they will get huge discounts.

The logistical system that Wal-Mart uses is so effective because it is so

flexible. This is why Wal-Mart is able to offer things much cheaper than other
companies can. Wal-Mart has a reputation for being able to offer these things in a
cheap manner because of low employee pay and human rights violations but this is
simply not the case.

Training and development at Wal-Mart

Whether starting out at Walmart or moving up in ytheir career, the goal of

their Training and Development program is to get we going on the right foot. Each
associate begins at Walmart with an in-depth personal orientation. Here we will
learn about the Walmart culture, and learn how we can make a unique contribution
working at Walmart.
 After orientation, each division has its own training and development
programs that give associates the knowledge and tools needed to succeed in their
specific job. In addition to the many different training programs offered throughout
Walmart, Logistics Talent Development is a unique opportunity offered to
Logistics associates.

Through innovative technology, Logistics Talent Development helps

associates learn more about their field and how to advance in their careers. Their
curriculum includes e-learning content, internally developed facilitation and
nationally-branded ctheirses with certified instructors. Other areas of the
curriculum include: performance analysis, curriculum design, graphic design,
technical documentation, event management, live broadcast, and video production.
One of their most interesting learning tools is Virtual Classroom. It broadcasts real-
time virtual classroom training via a closed circuit network to Logistics facilities.

Wal-Mart distribution stocks a very challenging submission approach in the

market today. As a trendy name amongst the consumer on the trustworthiness of
their consumers, lots rides on the shoulders of this huge chain. When ever Wal-
Mart schedules a meeting with their distributors, they discuss and compare
accurately what actually occurred as compared to what was planned with regards
to the particular product sale.

This data is acquired by constantly monitoring what goes on in the

concerned department during a normal day. With this feedback the vendor can
keep working on their techniques to improve and sell their product and also
minimize the rate at which the products are returned back to the store. Wal-Mart
distribution also has other distribution strategies which work well to their
advantage. The store is open 24 hours a day, 7 days a week and there are trucks
and trailers moving all the time and catering up to 100 stores in approximately 250
mile radius. This ensures quality control. In the era of losses in the retail sector of
up to $40 billion just by return of goods, incorporating Reverse Logistics into a
company’s system can size up the profits as high as 15% if planned with care.

Wal-Mart distribution is one of the most flourishing samples in which the

term Reverse Logistics simply plays its task, to become standard to all the
competition and striking them to incorporate the application of reverse logistics for
the superior ability and consumer gratification. Using a good balance and
management, a bigger rate of accuracy and reliability may be accomplished
according to the level of quality of merchandise thus decreasing the impairment.

Wal-Mart distribution business makes them to be leading grocery store in

the distribution business and reverse logistics. If we are planning to buy anything
hot in the market now, then Wal-Mart is considered to be a better option as they
always go for business with whatever product is hot in the market at a particular
time.

Reverse Logistics is quite simply associated to keeping an inexpensive flow

of raw components by the means of re-using and renovating the raw elements. The
key phrase Reverse Logistics implies that it is the invert of Logistics, which is
bringing the goods to the customers. Additionally, it contains the managing and
handling of all the failed and returned goods, focusing on them and then placing it
back in the market.

A logistics organization is responsible to guarantee that the time undertaken

between the return of a faulty item and it's returning in the market is the shortest.
It's a vitally important procedure nowadays where everything is measured
according to accuracy and reliability and even a moderate negligence in a
merchandise is approved for its return back to the vendor.

Wal-Mart distribution gives a very interesting distribution strategy in the

market today. As a popular name amidst the people and thriving on the reliability
of their clients, lots rides on the shoulders of this huge chain. Every time Wal-Mart
schedules a meeting with their distributors, they talk about and compare accurately
what actually occurred as compared to what was planned with regards to the
particular product sale.

This data is acquired by constantly monitoring what goes on in the concerned

department during a normal day. With this feedback the vendor can keep working
on their techniques to improve and sell their product and also minimize the rate at
which the products are returned back to the store. Wal-Mart distribution also has
other distribution strategies which work well to their advantage. The store is open
24 htheirs a day, 7 days a week and there are trucks and trailers moving all the time
and catering up to 100 stores in approximately 250 mile radius.
This ensures quality control. In the era of losses in the retail sector of up to
$40 billion just by return of goods, incorporating Reverse Logistics into a
company's system can size up the profits as high as 15% if planned with care.
Wal-Mart distribution is by far the most effective samples where the expression
Reverse Logistics simply plays its purpose, becoming a benchmark to all the
competitors and uplifting them to incorporate the application of reverse logistics
for the more effective presentation and customer satisfaction.
Having an adequate steadiness and administration, a larger level of precision may
be accomplished depending on good quality of merchandise thus minimizing the
loss.