Walmart is contacting all of the manufacturers that supply its more than 4,000 U.S. stores with a logistics proposition: The world’s largest retailer wants to use its own fleet of trucks to pick up products directly from manufacturers and deliver the merchandise to Walmart’s stores. In short, Walmart’s truck fleet would replace manufacturers’ or common carriers’ trucks. By doing so, Walmart believes it will enjoy substantial cost savings while allowing manufacturers to concentrate on what they do best—making products rather than managing logistical systems. Walmart, with about 6,500 trucks and over 50,000 trailers, believes it has the capacity to implement this new logistical program. Do you think Walmart’s logistical initiative is a good idea? Why or why not? Explain.
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