What are the four characteristics of the customer service strategy in the global market and how this
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What are the four characteristics of the customer service strategy in the global market and how this could apply to Wal-mart case?
As a logistics manager how can you help Wal-mart to improve the overall performance?
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Wal-Mart Concepts Wal-Mart is a company shaped by its supply chain and the efficiency of its supply chain has made it a leader in the markets it serves. Sam Walton decided to build a company that would serve a mass market and compete on the basis of price. He did this by creating one of the world's most efficient supply chains. The structure and operations of this company have been defined by the need to lower its costs and increase its productivity so that it could pass these savings on to its customers in the form of lower prices. The techniques that Wal-Mart pioneered are now being widely adopted by its competitors and by other companies serving entirely different markets. Wal-Mart introduced concepts that are now industry standards. Many of these concepts come directly from the way the company builds and operates its supply chain. Let's look at four such concepts: 1. The strategy of expanding around distribution centres (DCs) 2. Using electronic data interchange (EDI) and Radio Frequency Identification (RFID) with suppliers and even within the retailing stage. 3. The "big box" store format 4. "Everyday low prices" The strategy of expanding around DCs is central to the way Wal-Mart enters a new geographical market. The company looks for areas that can support a group of new stores, not just a single new store. It then builds a new DC at a central location in the area and opens its first store at the same time. The DC is the supply chain bridgehead into the new territory. It supports the opening of more new stores in the area at a very low additional cost. Those savings are passed along to the customers. The use of EDI with suppliers provides the company two substantial benefits. First of all this cuts the transaction costs associated with the ordering of products and the paying of invoices. Ordering products and paying invoices are, for the most part, well defined and routine processes that can be made very productive and efficient through EDI. The second benefit is that these electronic links with suppliers allow Wal-Mart a high degree of control and coordination in the scheduling and receiving of product deliveries. This helps to ensure a steady flow of the right products at the right time, delivered to the right DCs, by all Wal-Mart suppliers. The big box store format allows Wal-Mart to, in effect, combine a store and a warehouse in a single facility and get great operating efficiencies from doing so. The big box is big enough to hold large amounts of inventory like a warehouse. And since this inventory is being held at the same location where the customer buys it, there is no delay or further costs that would otherwise be associated Wal-Mart Concepts Wal-Mart is a company shaped by its supply chain and the efficiency of its supply chain has made it a leader in the markets it serves. Sam Walton decided to build a company that would serve a mass market and compete on the basis of price. He did this by creating one of the world's most efficient supply chains. The structure and operations of this company have been defined by the need to lower its costs and increase its productivity so that it could pass these savings on to its customers in the form of lower prices. The techniques that Wal-Mart pioneered are now being widely adopted by its competitors and by other companies serving entirely different markets. Wal-Mart introduced concepts that are now industry standards. Many of these concepts come directly from the way the company builds and operates its supply chain. Let's look at four such concepts: 1. The strategy of expanding around distribution centres (DCs) 2. Using electronic data interchange (EDI) and Radio Frequency Identification (RFID) with suppliers and even within the retailing stage. 3. The "big box" store format 4. "Everyday low prices" The strategy of expanding around DCs is central to the way Wal-Mart enters a new geographical market. The company looks for areas that can support a group of new stores, not just a single new store. It then builds a new DC at a central location in the area and opens its first store at the same time. The DC is the supply chain bridgehead into the new territory. It supports the opening of more new stores in the area at a very low additional cost. Those savings are passed along to the customers. The use of EDI with suppliers provides the company two substantial benefits. First of all this cuts the transaction costs associated with the ordering of products and the paying of invoices. Ordering products and paying invoices are, for the most part, well defined and routine processes that can be made very productive and efficient through EDI. The second benefit is that these electronic links with suppliers allow Wal-Mart a high degree of control and coordination in the scheduling and receiving of product deliveries. This helps to ensure a steady flow of the right products at the right time, delivered to the right DCs, by all Wal-Mart suppliers. The big box store format allows Wal-Mart to, in effect, combine a store and a warehouse in a single facility and get great operating efficiencies from doing so. The big box is big enough to hold large amounts of inventory like a warehouse. And since this inventory is being held at the same location where the customer buys it, there is no delay or further costs that would otherwise be associated
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