Wal-Mart seldom gets any love from the news or shoppers alike for the way they do business within their stores. Wal-Mart’s supply chain, however, is lauded by professionals everywhere as one of the greatest logistical triumphs the world has ever seen. Clara Lu dives into what makes this supply chain so effective in an article for Supply Chain 24/7.
Wal-Mart manages an average $32 billion in inventory and has over 11,000 stores globally. The beginning of this spectacular success began with the Vendor Managed Inventory initiative, by which manufacturers became responsible for taking care of their own products in Wal-Mart warehouses. This streamlined processes in a way that had not been seen before. Wal-Mart has further fostered collaboration by forging strategic partnerships and setting up communication networks with suppliers.
For several more ways that Wal-Mart’s supply chain has triumphed, and to read about the above points in greater detail, you can read the full article here: http://www.supplychain247.com/article/incredibly_successful_supply_chain_management_how_does_walmart_do_it