Question: please help me with the below for customer relationship maanagement : Wal - Mart s Distribution and Logistics System As the world s largest retailer
please help me with the below for customer relationship maanagement :
WalMarts Distribution and Logistics System
As the worlds largest retailer with net sales of almost $ billion for the fiscal year WalMart is considered a bestinclass company for its supply chain management practices. These practices are a key competitive advantage that have enabled WalMart to achieve leadership in the retail industry through a focus on increasing operational efficiency and on customer needs. WalMarts corporate website calls logistics and distribution the heart of its operation, one that keeps millions of products moving to customers every day of the year.
WalMarts highlyautomated distribution centers, which operate hours a day and are served by WalMarts truck fleet, are the foundation of its growth strategy and supply network. In the United
States alone, the company has more than regional distribution centers for import flow and more than distribution centers for domestic flow. When entering a new geographic arena, the company first determines if the area will be able to contain enough stores to support a distribution center. Each distribution center supports between to retail stores within a mile area. Once a center is built, stores are gradually built around it to saturate the area and the distribution network is realigned to maximize efficiencies through a process termed reoptimization The result is a trickledown effect: trucks do not have to travel as far to retail stores to make deliveries, shorter distances reduce transportation costs and lead time, and shorter lead time means holding less safety inventory.
An important feature of WalMarts logistics infrastructure was its fast and responsive transportation system. The distribution centers were serviced by more than company owned trucks. These dedicated truck fleets allowed the company to ship goods from the distribution centers to the stores within two days and replenish the store shelves twice a week. The truck fleet was the visible link between the stores and distribution centers. WalMart believed that it needed drivers who were committed and dedicated to customer service. The company hired only experienced drivers who had driven more than accidentfree miles, with no major traffic violation.
WalMart truck drivers generally moved the merchandiseloaded trailers from WalMart distribution centers to the retail stores serviced by each distribution center. These retail stores were considered as customers by the distribution centers. The drivers had to report their hours of service to a coordinator daily. The coordinator scheduled all dispatches depending on the available driving time and the estimated time for travel between the distribution centers and the retail stores. The coordinator informed the driver of his dispatches, either on the drivers arrival at the distribution center or on his return to the distribution center from the retail store. The driver was usually expected to take a loaded truck trailer from the distribution center to the retail store and return back with an empty trailer. He had to dispatch a loaded truck trailer at the retail store and spend the night there. A driver had to bring the trailer at the dock of a store only at its scheduled unloading time, no matter when he arrived at the store. The drivers delivered the trailers in the afternoon and evening hours and they would be unloaded at the store at nights. There was a gap of two hours between unloading of each trailer. For instance, if a store received three trailers, the first one would be unloaded at midnight AM the second one would be unloaded at AM and the third one at AM Although, the trailers were left unattended, they were secured by the drivers, until the store
personnel took charge of them at night. WalMart received more trailers than they had docks, due to their large volume of business.
Because WalMarts fast, responsive transportation operations are such a major part of the companys successful logistics system, great care is taken in the hiring, training, supervising, and assigning of drivers schedules and job responsibilities. From the onset of his retailing career, WalMart founder Sam Walton recognized the importance of hiring experienced people and of building loyalty not only in his customers but also in his employees. The company hires only experienced drivers who have driven more than accidentfree miles and whom it believes will be committed to customer service.
Question
Discuss the concept of competitive advantage and explain how Walmart attains a competitive advantage.
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