Strategic Supply Chain Model Paper

Essay by aaron766University, Bachelor'sA+, November 2009

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Wal-Mart is a shopping center that carries a variety of products ranging from clothing to office supplies and grocery supplies. This shopping center receives the products they carry from suppliers, and the supply chain must be managed accordingly. In this paper, Team A discusses the need for supply chain management, how Wal-Mart orders and delivers products in their present situation, and the elements of the supply chain model for the organization.

Wal-Mart is a one stop shopping experience for a variety of items. In order to maintain their supplies, they have to order materials from their suppliers. Wal-Mart is a store that prefers not to hold inventory but they also with to prevent backorders in their store (Atkinson, 2006). They accomplish this by replenishing stock only as needed. The computer system within Wal-Mart's cash registers retains a record of sales of products, and those products are ordered according from the main office.

This causes suppliers to have to hold on to a greater amount of materials to meet the needs of Wal-Mart, but prevents Wal-mart from overstocking on products. The main office orders for both Wal-Mart and for Sam's club, so they have to maintain good relations with the suppliers and also make sure that the suppliers maintain a high level of standards for social and environmental needs. Wal-mart's suppliers come from both national levels and international levels, which leads to delivery methods for the supplies.

Wal-mart uses multiple delivery systems for their products. From overseas, the supplies are shipped by both ship and air, and from national suppliers the supplies are shipped by trucks. In order for Wal-mart's inventory to them be shipped from the main supply storage area, the supplies are trucked to each individual Wal-mart and Sam's club nationwide depending on the needs of each...