Running Head: WALMART
Section one = Part 3 of the project
Walmart’s main activities include inbound logistics, operations, and outbound logistics.
There are thousands of businesses that are spread globally that supply Walmart’s stores. In the
bid to keep its prices lower than that of other rivals, Walmart’s strategy is to depend on suppliers.
This strategy works in that Walmart has no trouble managing its prices. Due to its size and
financial clout, the company is in a position to press its suppliers. The strategy employed by
Walmart gives its suppliers the potential for high volume purchases in the long term. Walmart’s
main operational area is retail. There are more than 11500 retail outlets operating all over the
world. In terms of outbound logistics, Walmart employs cross-docking. With cross-docking,
Walmart is in a position to keep the transportation and inventory costs low. Some of the criteria
used to evaluate the performance of the main activities of Walmart include the efficiency of the
processes, the productivity of sales personnel, the quality of the service/products offered, and the
effectiveness of processes.
The operations management of Walmart covers numerous strategies that focus on the
management of the inventory, supply chain in addition to sales performance. In terms of quality
management, Walmart uses three tiers of quality standards. The first tiers control strategy
specifies the minimum quantity expectation of most customers. This lower tier is kept by most
Walmart brands, for instance, Great Value. The middle tier, on the other hand, is used to specify
the average market quality and is intended for low-cost retailers. Finally, the upper tier is geared
towards the minority of its customers, for instance, Sam's Choice Brand.
The other control ...
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