Supply chain strategy is one aspect of business strategies among various others. It is inherently tied to the overall business aims and objectives and is therefore a central determinant of the success or failure of the organization. Supply chain strategy is defined as designs and plans of the organizations’ route of delivering products that enables the organization meet customer demands at the lowest possible price (An & Fromm, 2010).
The focus of this study will be Wal-Mart warehouses where the author has worked in the past. Wal-Mart is a company based in the United States of America but which has grown and opened 8500 franchises in 15 countries on the globe under various names such as Asda and Seiyu among others. As a result, it is credited as one of the largest employers on earth whereby about two million people are said to work for the organization.
The Company is involved in retail of food, drugs, and even clothes among other things (Schoenfeldt, 2008). Their ultimate aim is to provide to the customers goods and services in a timely manner and at the lowest possible cost (Scott et al., 2011). The company is divided into several operating divisions that are known as Wal-Mart Stores U.S., Sam’s Club, and Wal-Mart international, Vudu, Private Label Brands and Entertainment (Hugos, 2011).
Wal-Mart warehouses are numerous within the United States of America, over 40, and each warehouse stores a specific kind of merchandise which the organization sells.
Thus there are warehouses that deal with foodstuff, drugs, clothing, and general merchandise among others (Jacoby, 2009). As a result, there are numerous warehouses that are concerned with the same products or merchandise all over the country (United States of America). In total, more than 80 000 items are stored in these warehouses which are also known as distribution centres.
Most warehouses are located far from each other but they are all strategically placed in regard to the distance between the warehouse and the store. Most of them are actually within six hours by car from the nearest Wal-Mart stores which enables the company to save on the costs of advertising and distribution. The warehouses are responsible for delivery of 90% of what is available in the retail stores of Wal-Mart).
The company’s stores are able to stock items in their retail stores within two days while the competitors are able to do so in about five days on average (Scott et al., 2011). Each warehouse is divided into different sections depending on the amount of goods that are delivered to the centre. Goods that come into the warehouses are packaged in either pallets or reusable boxes or cases (Jacoby, 2009). Some of the merchandise that is sometimes delivered includes automotive and pharmaceutical.
