A presentation of the success of Wal-Mart’s distribution system.
This paper explains that two key developments that made the success of Wal-mart possible, multi-channel distribution and the resulting inventory flow. It discusses how Wal-Mart set up highly automated distribution centers, cutting down on delivery time and costs. The company’s computerized inventory systems gave managers real-time information on their stocks, speeding up the re-ordering of goods.
Introduction
About Wal-Mart
Distribution Centers
The Logistics of Wal-Mart’s Distribution Center
Implications of Wal-Mart’s Competitive Advantage
Conclusion
Introduction
About Wal-Mart
Distribution Centers
The Logistics of Wal-Mart’s Distribution Center
Implications of Wal-Mart’s Competitive Advantage
Conclusion
“When Sam Walton, the founder of Wal-Mart, first formulated his business plan for the multi-billion dollar corporation, companies like Sears and Montgomery Ward were strong leaders in the industry (Lovern, 2001). However, Walton spotted a weakness in these companies, aiming to become the low-price leader in small, rural towns. Walton recognized the fact that most small towns were, in the early 1960s, isolated from national markets. Therefore, he believed that if he could beat the prices of local retailers, the company would be successful.”