bus 101
SM C101 Chapter 1 Page 29 Internet Questions
1. Visit the websites of companies like Wal-Mart, Dell and Home Depot, and see if you can find discussions of their supply chain management activities. List information you can find on purchasing/supplier issues, logistics, information systems, quality and customer service.
Purchasing/supplier issues: Wal-Mart always emphasized the need to reduce its purchasing costs and offer the best price to its customers. The company procured goods directly from manufacturers, bypassing all intermediaries. Wal-Mart was a tough negotiator on prices and finalized a purchase deal only when it was fully confident that the products being bought were not available elsewhere at a lower price. Wal-Mart spent a significant amount of time meeting vendors and understanding their cost structure. By making the process transparent, the retailer could be certain that the manufacturers were doing their best to cut down costs. Once satisfied, Wal-Mart believed in establishing a long-term relationship with the vendor. In its attempt to drive hard bargains, Wal-Mart did not even spare big manufacturers like Procter & Gamble. However, the company, generally, preferred local and regional vendors and suppliers.
Logistics: An important feature of Wal-Mart’s logistics infrastructure was its fast and responsive transportation system. Wal-Mart maintained a strict vigil over its drivers by keeping a record of their activities through the “Private Fleet Driver Handbook”. The purpose of the book was to educate the drivers with regard to the code of conduct. Non-compliance to the hand book would result in the termination of the driver. To make its distribution process more efficient, Wal-Mart also made use of a logistics technique known as ‘cross docking’. In this system, the finished goods were directly supplied to the customers. The system reduced the handling and storage of finished goods, virtually eliminating the role of the distribution centers and
1. Visit the websites of companies like Wal-Mart, Dell and Home Depot, and see if you can find discussions of their supply chain management activities. List information you can find on purchasing/supplier issues, logistics, information systems, quality and customer service.
Purchasing/supplier issues: Wal-Mart always emphasized the need to reduce its purchasing costs and offer the best price to its customers. The company procured goods directly from manufacturers, bypassing all intermediaries. Wal-Mart was a tough negotiator on prices and finalized a purchase deal only when it was fully confident that the products being bought were not available elsewhere at a lower price. Wal-Mart spent a significant amount of time meeting vendors and understanding their cost structure. By making the process transparent, the retailer could be certain that the manufacturers were doing their best to cut down costs. Once satisfied, Wal-Mart believed in establishing a long-term relationship with the vendor. In its attempt to drive hard bargains, Wal-Mart did not even spare big manufacturers like Procter & Gamble. However, the company, generally, preferred local and regional vendors and suppliers.
Logistics: An important feature of Wal-Mart’s logistics infrastructure was its fast and responsive transportation system. Wal-Mart maintained a strict vigil over its drivers by keeping a record of their activities through the “Private Fleet Driver Handbook”. The purpose of the book was to educate the drivers with regard to the code of conduct. Non-compliance to the hand book would result in the termination of the driver. To make its distribution process more efficient, Wal-Mart also made use of a logistics technique known as ‘cross docking’. In this system, the finished goods were directly supplied to the customers. The system reduced the handling and storage of finished goods, virtually eliminating the role of the distribution centers and