Competency 1
Wal-Mart is enjoying leadership position in the market due of effective suppliers, integration, distribution, warehouse, and manufacturing (Veder & Cox, 2006).
The overall transportation objective of Wal-Mart is to improve efficiency of supply chain (Lawrence, Klimberg & Miori, 2010). It also focuses on share information with partners, ensure strategic partnership, focusing on cutting costs, and developing capabilities of supply chain. The supply chain of Wal-Mart is consistent with business objectives. Cost cutting strategy of the company is, however, consistent with business strategy, which is to facilitate customers at lower price.
Wal-Mart uses trailers, trucks, semitrailer truck, rail cars, and railroad car, for moving the product from factory to customers.
The company has introduced green transportation so that greenhouse gas emission can be controlled.
It has introduced technologies for saving fuel for making distribution fleet more effective. This is, however, also helpful in more effective loading of trucks, and for improving routing.
Further, Wal-Mart is using Cross Docking as a tactic for inventory. Suppliers of Wal-Mart are delivering products to distribution centre of the company where cross docking of products take place, and after that they are delivered to stores of Wal-Mart. The company should focus on further improving mode of transportation, and for that it should ensure improvements in routing, ensure effective loading, and use transportation that is fuel efficient, and focus on saving fuel.
The factories and warehouses of Wal-Mart are located near to stores. This is allowing the company to ensure timely delivery of products. The goods are, however, shipped to stores by using cross docking without staying in inventory for a long period of time in the inventory. This has allowed reduction of cost, and allowed the company to offer competitive price to customers.
There are some disadvantages also. Sometimes suppliers become sluggish as they consider that stores are near, and they can supply products at any time, because of which timely delivery of products cannot be ensured. Goods remain in inventory as they are not shipped to stores. For them the company should Ensuring Effective Communication with suppliers so that they become aware of their tasks, and become capable of completing the task in timely manner. Further, the company should design work schedule of suppliers so that timely delivery can be ensured
The economic factors that exert their influence on warehousing and transport of company are
Price sensitivity
Consumers are sensitive to price, as they like to buy products of lower price.
Trade Agreements
Changes or modifications in trade agreement exert their influence
Change in rules and regulations regarding environment also affect transport and warehousing activities
Local labor market
Change in labor laws negatively affect operations at warehouse and also exert influence on transport as suppliers become reluctant to deliver the products.
Local and global competitors affect operations by lowering the price, and providing more products to consumers
Change in consumer price also affects operations of warehouse
Political Factors
Lawsuits
Lawsuits such as violation of child labor law, and poor working conditions negatively impact operations of warehouse as well as activities related to transport
Further, issues regarding trade, pay of workers, discrimination, and health care etc are also not good for warehouse and transport activities of company.
Government interventions also play their role, and they may lead to rejection of new plans of company.
Competency 2
Technology is playing major role, and is foundation of supply chain of company
The company is using universal bar codes in which information at store level is generated and analyzed immediately.
It is using Retail link, which help in forecasting demand of supplier in supplier network
The company is also maintaining central database
Further, it is using Radio Frequency Identification tags for tracking merchandising in supply chain
It is also using smart tags to facilitate employees replace products on shelves, keep an eye on inventory, and continuously stock products.
Competency 3
Wal-Mart should act on supplier standards; comply with labor and environmental rules, regulations and standards in order to improve its warehouse and transportation activities. Further, it should introduce remediation process in order to ensure compliance with supplier contract. It should improve sustainability and commitment to operations. However, it should also focus on improving auditing of human rights and labor so that protection of lives of workers in factory can be ensured. It should also focus on supplier empowerment so that suppliers become capable of pooling resources and ensuring collaboration.
References
Lawrence, K.D., Klimberg, R.K., & Miori, V.M. (2010). The Supply Chain in Manufacturing, Distribution, and Transportation: Modeling, Optimization, and Applications. CRC Press, California
Veder, R.K., & Cox, W. (2006). The Wal-Mart Revolution: How Big-box Stores Benefit Consumers, Workers, and the Economy. AEI Press, Washington
Weizsacker, E.V., Desha, C., Hargroves, K.C., Smith, M.H., Stasinopoulos, P. (2009). Factor Five: Transforming the Global Economy Through 80% Improvements in Resource Productivity : a Report to the Club of Rome. Earthscan Publishing, London
