Wal-Mart Supply Chain

The US based Wal-Mart ranked first in the global Fortune 500 list in the financial year 2001-02 earning revenues of $219.81 billion. Wal-Mart is one of the largest retailing companies in the world. The company has grown larger then than its competitors, such as Target, Sears, K-Mart, and many more. Now, Wal-Mart operate more than 3,500 discount stores, Sam’s Clubs and supercenters in the US and more than 1,170 stores in all major countries across the world. So, one has to wonder, how do Wal-Mart’s supply chain works and how is it managed. The use of technological infrastructure such as information technology and state-of-the art communication system is a very powerful tool in any business today that guarantees up-to-date and hasten process in the logistics operations which leads to being able to cater to the needs and demands of the customer in the least time possible. The use of the said state-of the art technology guarantees Wal-Mart to readily and steadily track down the sales and merchandise in all of its stores across the United States including the follow-up track down to the global operations. In fact, in 1983, Wal-Mart launches its own satellite communication system as they see the need to expand not only their operations but also their communication system such that they can sustain the growing demand of communication essential to keep terms in the operation of the increasing retail outlets or distribution centers. Wal-Mart always highlights the need to reduce its purchasing costs and offer the best price to its customers. The company acquires goods directly from manufacturers, bypassing all intermediaries. Wal-Mart is a tough negotiator on prices and finalized a purchase deal only when it is fully confident that the products being bought were not available elsewhere for the same low price. Wal-Mart had over 40 distribution centers located at different geographical locations in the US. Over 80,000 items are stocked in these centers for shipments to