Global Supply Chain Management

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Global Supply Chain Management

Global supply chain management is widely known as distribution of goods and services throughout a transnational company where global networks are made for increasing the profit and minimizing the waste. It should be noted that the process of supply chain management begins from production and logistics of the company i.e. procurement of raw material to the very ending i.e. delivering the final products to the distributors and ultimately gain points of sale. It should be noted that practice of Global supply chain management has total of 6 areas of concentration such as competitor orientation, logistic management, customer orientation, supply chain coordination, supply management and operational management. These six areas of concentration are wrapped up in four major areas known as marketing, logistics, supply management and operations. The impact of the global supply chain management is huge considering the policies and regulation of supply chains that are active in the present times. The practice of global supply chain management is directly associated with the rising globalization and forces the company to seek wider operations in the other countries as well.

Examples of Successful Global Supply Chain Management

Considering on its practice, it is noted that business owners not only benefit from the global supply chain management but are also investing in the commercial growth and overall cost in the business. The numbers of the successful global supply chain managements in the world are numerous. The successful ventures have become an example of prosperous companies that developed the supply chain management concept and efficiently become prominent in the global circle. Some of the examples of such ventures are Coca Cola Company having successful range of sponsorships, partnerships and alliances, Colgate selling its product through the help of supermarkets, pharmacies and wholesalers, 7-eleven capacity for productive company, a fashion house Zara with main distributors across the global and finally, Amazon whose supply chain goes from inventory to the distribution to logistics in international scales perspective. (Manuj & Mentzer, 2008)

Wal-Mart: An Exemplary Case of Global Supply Chain Management

Through the world, there are many examples of the global supply chain management however the best example of such practice can be observed in the Wal-Mart. Wal-Mart is the American multinational retail corporation that operates under wide chains of retail store, grocery stores and discount store. The headquarters for the Wal-Mart is in Arkansas and was founded by Sam Walton in 1962. Since its foundation, the Wal-Mart has 11, 593 stores and at least 29 clubs. The Wal-Mart company works in Canada and United States. It has become the largest company according to the revenue and listed in Fortune Global 500 list in 2016. It is largest private employer in the world with 2.2 million employees. (Lu, 2014)

Wal-Mart's Effective Supply Chain Management Strategy

According to the Supply Chain Digest, this retail giant is working globally in more than 70 countries and operates in more than 11000 stores, managing the $32 billion inventory. With this kind of practice, the Wal-Mart sure has the effective supply chain management strategy that is imperative in nature. It is reflected that the entire organization is control by the driving costs and supply chain that enables the consumers to not only save money but have better items and production as well. It is reflected that Wal-Mart started its goal through providing the customers with the best goods and production while the company focus on establishing highly structured and advanced supply chain management strategy that enhances their competitive advantage and market leadership position. It is reflected that the Wal-Mart streamlined their products and supply chain management through constructing the communication and relationship sources with the partners and suppliers for the improved material flow. The global network of suppliers assisted the Wal-Mart for the warehouses and retail stores that could help in low inventory and collaboration at large.

Cross Docking as a Logistics Practice

Wal-Mart widely used the cross docking as the logistics practice and this ensure the company to have strategic replenish inventory efficiently. The cross docking inventory practice allowed the direct transfer of the products with extra storage. The suppliers are in the view that delivering products to the company distribution center are keeping the transportation and inventory cost lower and it also save their time and inefficiencies.

Technology and its Role in Wal-Mart's Supply Chain

It should be noted that Wal-Mart celebrates the technology tremendously and allows the customers to have exceptional experiences while dealing with the company. Technology plays an important part in the Wal-Mart supply chain because it serves as the foundation for the system. Wal-Mart owns the state of the art infrastructure technology that allows network designs and accurate forecasting for the demand track and even predicts inventory levels. The high efficient transportation routes and customer relationships are all managed on the technology and their services responses are even better at logistics.

Collaborative Planning, Forecasting, and Replenishment

From the supplier to the manufacturers, the company have strong supply chain management demands that projects a collaborative planning, forecasting and replenishment of the chains that connects the whole Wal-Mart system with each other. The central database and store level operation are so innovative for the company that it is approached frequently and creates effective merchandise for the services. The multinational corporation Wal-Mart is the second best largest employers in the US for such practice.


Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management strategies. International Journal of Physical Distribution and Logistics Management, 38(3), 192-223.

Lu, C. (2014, December 5). Incredibly Successful Supply Chain Management: How Does Walmart Do It? Retrieved from Supply Chain News:

October 24, 2023

Business Economics

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