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Walmart Case Study: Half a Century of Supply Chain Management

SCM 607
Dr. John Wu
March 15, 2014
Table of Contents

Walmart Case Study: Half a Century of Supply Chain Management
INTRODUCTION
Walmart dominates the retailing industry in terms of its sales revenue, its customer base, and its ability to drive down costs and deliver good value to its customers. After all, the world’s largest corporation, employing 1.8 million associates worldwide, takes pride in having received numerous accolades for its ability to continuously improve efficiency in the supply chain while meeting its corporate mandate of offering customers everyday low prices. Walmart demonstrates how a physical product retailer can …show more content…

Some companies thrived using the new technology. Others, including Walmart itself, ran into trouble. At the time of the mandate, RFID technology was in its infancy, and costs for planning, hardware, software, and training were prohibitive for many suppliers. Additionally the technology was new enough that the industry lacked best practices for implementation. Indeed, it lacked any examples that might help newcomers avoid pitfalls. Walmart repealed its edict, but continues to probe the usefulness of the technology.
In response to criticism from consumer groups, Walmart tackled environmental sustainability in its supply chain and, as is frequently the case because of the company’s size, became a trendsetter for other retailers. After vowing to reduce its greenhouse gas emissions by the equivalent of taking nearly 4 million cars off the roads for a year, Walmart directed its suppliers to think green throughout the full product lifecycle. Suppliers are required to pay for sustainability efforts, a price most suppliers accept willingly to retain their relationship with Walmart. Many also recognize that reducing energy use will benefit them as energy costs rise. Harnessing energy, increasing recycling, reducing waste, and minimizing packaging and