WALMART Case Solution
The Walmart Chain was founded by Sam Walton in 1962, with a single room in Rogers. In 1968; Walmart expanded its business to Arkansas, and then in 1980, it had a further expansion throughout the southern United States. Walmart is the biggest retailer in the world. In the fiscal year of 2016; the company maintained its leadership position in the market, and became a global fortune 500 company with sales of $482,130 million, Walmart has over 10,000 retail outlets in different locations throughout 27 countries. Many factors play a role in achieving Walmart’s success but the most important factor that contributes most to the company’s dominating position in the retail business is its efficient supply chain, well-integrated supply chain, and cost-effectiveness (Clara Lu, 2018).
It is commonly acknowledged that rather than focusing on their operations, supply chain capacity has emerged as a significant aspect in increasing a company’s competitiveness. As a result, businesses today see their supply chains as a competitive advantage. Products or services are supplied to final clients and at the lowest cost via the supply chain, satisfying customer demands while also increasing cost-effectiveness for all internal and external participants. Firms must, however, redesign their supply chains in the competitive global economy to be flexible to the the changing environment and taking competitive advantage of the global market. The supply chain of procurement and distribution, logistics and inventories must be considered while managing the supply chain.
Walmart supply chain is facing conflict in restocking. Company’s overall operations are affected due to limited stocks in the company. One of the main supply chain conflicts that arise is restocked problems.In Walmart, to improve its stores, some products were returned to store shelves, causing one of the major supply chain problems. Its operations have been greatly impacted due to its inability to re-stock items on time to meet customer demand,in some cases, restocking can take weeks or months (Business & Politics, 2021).
Products purchased from Walmart must be replaced or restocked when shipped. Anything less than this will cause conflicts because customers won’t be able to find what they’re looking for. This is a major supply chain problem that Walmart will need to resolve.
The second conflict is that Walmart is facing issues related to employees, including low wages, poor working environment, gender discrimination, and supplier restrictions. Such criticism may affect the firm reputation. The working environment in Walmart is not suitable for employee’s i.e. Low wages, gender discrimination and supplier’s restrictions-current employees have filed lawsuits against Wal-Mart for various illegal and unethical acts, such as not paying sufficient wages and demanding overtime. No Lunch break for employees. As a result, many employees left their jobs at Wal-Mart after a few months, “Wal-Mart’s turnover rate is particularly high compared to retail stores. For full-time employees, it is 35% to 45% per year. 56% of part-time jobs.” Discrimination based on gender and race is considered Walmart culture. About 70% of employee sales are women, and they earn less than men and are not hired for higher positions………………
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