QSO 330 Milestone Two Guidelines and Rubric
Overview: The final project for this course is the creation of a supply chain evaluation. Supply chain management (SCM) is a holistic view of a company’s efforts
to source, procure, receive, store, and deliver products. These products can be raw materials for a manufacturing process, consumer goods for a retail chain, or a
collection of items that will be joined in some way before ultimate delivery to the customer. In today’s global economic environment, SCM takes on an increasing
level of complexity as companies attempt to reduce costs, drive efficiency, and remain compliant with the corporate social responsibilities that today’s
consumers demand.
Prompt: For this milestone, you will submit an evaluation of Walmart’s transportation and warehousing networks, focusing on constraints, modes of
transportation, infrastructure, and special handling requirements. You will also make recommendations to improve transportation.
Specifically, the following critical elements must be addressed:
IV.
Transportation: In this section, first consider the effectiveness of Walmart’s transportation network in order to then determine possible cost savings
without sacrificing performance.
A. Evaluation
1. Identify constraints within the transportation network and discuss the impact they will have on the overall supply chain operation. Be
sure to provide specific examples to illustrate.
2. Analyze the transportation network and determine whether or not the correct modes of transportation are being used based on time,
cost, and quantity.
B. Recommendations: Make recommendations on how to improve the transportation network given the constraints you identified using specific
examples to illustrate and justify your claims.
V.
Warehousing: In this section, first analyze your client’s warehousing network in order to then determine requirements and develop recommendations
for adequately meeting current and future storage needs.
A. Evaluation
1. Analyze the current warehousing infrastructure to determine if the current warehousing network adequately meets storage needs.
Additionally, consider eventual expansion requirements of Walmart’s operation. What are the constraints or restrictions involved in the
possible locations?
2. Identify considerations for special handling of hazardous materials and describe their impact on warehousing for the current mix of
products that Walmart’s SCM is handling, using specific examples.
Note: For this milestone, you will complete critical elements IV.A, IV.B, and V.A. As a reminder, you will need to complete additional critical elements (V.B.1–2)
for this part of the final submission of your final project.
Rubric
Guidelines for Submission: Your paper should be a 3‐ to 4‐page Microsoft Word document with double spacing, 12‐point Times New Roman font, one‐inch
margins, and at least three sources cited in APA format.
Critical Elements
Transportation:
Evaluation: Constraints
Proficient (100%)
Identifies all relevant constraints
within the transportation network
and discusses their impact using
specific examples
Transportation:
Evaluation: Modes of
Transportation
Makes valid claims about the
effectiveness of current modes of
transportation based on an accurate
analysis of time, cost, and quantity
Transportation:
Recommendations
Recommends sound improvements
to the transportation network that
address all of the concerns and
constraints identified in the
transportation evaluation using
specific examples
Reasonably analyzes warehousing
infrastructure to determine its
adequacy for meeting current and
potential future storage needs
Warehousing:
Evaluation:
Infrastructure
Warehousing:
Evaluation: Hazardous
Materials
Articulation of Response
Identifies all relevant considerations
for special handling of hazardous
materials and describes their
impacts on warehousing using
specific examples
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Needs Improvement (75%)
Discusses constraints within the
transportation network but fails to
address all relevant constraints or
fully discuss their impact using
specific examples
Discusses the effectiveness of
current modes of transportation,
but not all claims are valid or based
on an accurate analysis of time,
cost, and quantity
Discusses improvements to the
transportation network but fails to
make fully sound recommendations
that address all of the concerns and
constraints using specific examples
Not Evident (0%)
Does not identify constraints within
the transportation network
Discusses warehousing
infrastructure but fails to reasonably
determine its adequacy for meeting
all current and potential future
storage needs
Discusses considerations for special
handling of hazardous materials but
fails to identify all relevant
considerations or to describe their
impacts on warehousing using
specific examples
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that
negatively impact readability and
articulation of main ideas
Value
17
Does not make claims about the
effectiveness of current modes of
transportation
17
Does not discuss improvements to
the transportation network
17
Does not discuss warehousing
infrastructure
17
Does not discuss considerations for
special handling of hazardous
materials
17
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization that
prevent understanding of ideas
15
Total
100%
Running Head: CHINA’S WALMART SUPPLY CHAIN TRANSPORTATION
China'swalmart: Supply chain transportation
Dwon Tagger
SNHU
1
CHINA’S WALMART SUPPLY CHAIN TRANSPORTATION
2
Introduction
Wal-Mart is a multinational firm based in Arkansas. It is a giant company with over ten
hundred stores. Every week, this company has a capacity of serving at least 250 million
customers globally. In China, we have a Wal-Mart store which was opened in the mid of 1996
and which currently serve more than four hundred retail stores. Over the years, the supply chain
for Wal-Mart distribution has been realized considerable success in different parts of the world
due to more profound management support when it comes to both competitive market advantage
as well as capital investment. However, Wal-Mart stores in China have for more than three years
been unable to meet the needs of its clients. This paper will be discussing the suppliers and
customers of the Wal-Mart stores in China by evaluating the areas that clients need to improve
and enhance its efficiency. Within the course of this paper, detailed information about the
element of the supply chain of sourcing in Wal-Mart.
Demand forecasting: The Supply and demand side for china’s Wal-Mart product flow
The Wal-Mart supply chain has increasingly gone through some changes stemming from
the distribution mechanism to the operation of customers. Inherently large units of stocks are
distributed from the leading stores directly to the areas where customers are located. China's
Wal-Mart suppliers directly distribute shipped products to the stores. Due to the shipment
mechanism in place, the china's Wal-Mart could use container loads, truckloads and the
quantities of the economic order in supplying products (Schleper, Blome & Wuttke, 2017).
However, for those perishable products, this mode was unfavorable and as such Wal-Mart was
forced in 2015, to introduce two different modes for transporting goods into stores which
CHINA’S WALMART SUPPLY CHAIN TRANSPORTATION
3
included dry and perishable distribution systems. Consequently, this called for several centers for
distribution that have recently evolved to both dry and perishable direct centers.
Needs of the customers (Constrains)
Convenient locations for the customers, affordable products, high-quality products and
services from China's Wal-Mart were required. For this to be accomplished, the number of stores
needed to increase to serve not only cities within China but also in other parts of the world. The
offered services also brought about improvement hence making Wal-Mart’s products to be
affordable. Also, the customers highly expected the cycle of seven days operation on two shifts
dealing with a volume of over one hundred and fifty thousand products on a daily basis, peak
demand of an estimate of ninety thousand per day. In addition to that, the product mix of three
thousand and five hundred is expected inclusive of a broad range of goods with both perishable
and durable products. Further, it is likely that the distribution center will go as higher as 70%
during the peak demand.
Supplier’s capabilities
China’s Wal-Mart is operating through the websites that it has created as well as within
its physical location. Currently, its operation is conducted by one hundred and six cities with four
hundred and six stores china. A large number of these stores utilizes similar procedural standard
when it comes to the management inventory, customer relation, staffing, display of merchandise,
materials handling, information technology as well as product design and control. It is the team
of corporate management that facilitates the process of China's supply chain in different stores.
Supplier’s evaluation
CHINA’S WALMART SUPPLY CHAIN TRANSPORTATION
4
Recently, china’s Wal-Mart stores have come up with an approach of cutting down the
high cost of transportation which in turn has assisted in the business in forecasting its stores. In
this way, more benefits can be realized through the use of fuller vehicles and railways which
seem to be more cost-effective transportation methods (Choudhury, 2017). To add on this, the
Wal-Mart has developed systems for its stores that are useful in providing stock which is in stock
out conditions. Wal-Mart has become more reliable regarding information in its stores. The
creation of the websites has importantly helped in the accomplishment of an electronic
commerce system that allows in online marketing and other operation that it ventures.
Evaluation constrains
Of late, Wal-Mart stores in China have boats some of the products to its clients in around
one thousand and nine hundred shops. The turnover of inventory within this business is greatly
being maximized with the enterprise being concentrated on increasingly inventory turnover. This
has also helped in fast-changing trends within the scientific industry and more effectively in the
electronic market.
Evaluation of China’s Wal-Mart Strategy for Network Sourcing
In this Wal-Mart, the network has become a bit fragmented with twenty-nine independent
offices buying across china republic. Most importantly, Wal-Mart has five dry distribution
centers which are serviceable and serving almost all the stores. The logistic team usually charges
some suppliers of the company free for consumption of their network hence making distribution
more expensive and making service delivery very horrible. (Bornstein, 2017). The logistic team
charges highly and therefore Wal-Mart prefers to use big trucks in the supply of goods in stores
which is also expensive.
CHINA’S WALMART SUPPLY CHAIN TRANSPORTATION
5
Recommendations
The order system of the Wal-Mart China must be kept current to improve on the number
of requirements and increase stock delivery in the performance of its business. On the side of the
logistic system, Wal-Mart benefits from the product that needs to be rescinded in totality to
improve effectiveness and efficiency. There is also the need for lowering the risk of the credit
card. Besides, the inventory information needs to be high in avoidance of devastating operations
as well as poor management of stock. Further, the network system must largely produce effects
products to meet the demand forecasted by the customers.
CHINA’S WALMART SUPPLY CHAIN TRANSPORTATION
References
Bornstein, S. (2017). Reckless Discrimination. Cal. L. Rev., 105, 1055.
Choudhury, R. R. (2017). Supply Chain Management-Disk Framework.
Schleper, M. C., Blome, C., & Wuttke, D. A. (2017). The dark side of buyer power: Supplier
exploitation and the role of ethical climates. Journal of Business Ethics, 140(1), 97-114.
6
QSO 330 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of a supply chain evaluation. Supply chain management (SCM) is a holistic view of a company’s efforts to source,
procure, receive, store, and deliver products. These products can be raw materials for a manufacturing process, consumer goods for a retail chain, or a collection
of items that will be joined in some way before ultimate delivery to the customer. In today’s global economic environment, SCM takes on an increasing level of
complexity as companies attempt to reduce costs, drive efficiency, and remain compliant with the corporate social responsibilities that today’s consumers
demand.
For this project, you will act as the lead consultant to Walmart as it attempts to improve its overall supply chain. The ultimate recommendation you make will be
based upon your analysis of the current SCM and your insight on how to improve demand forecasting, sourcing, transportation, and warehousing options to
optimize the overall operation. This project will showcase your ability to balance the competing requirements of reducing cost and increasing efficiency while
remaining at the forefront of sustainable operations for the industry. Your analysis and recommendations will be formatted into a supply chain evaluation for
Walmart’s executive team to use to optimize their supply chain management in this very demanding environment.
The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Three and Five. The final product will be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Analyze operational and logistical issues related to supply chain management using appropriate quantitative and qualitative methodologies
Determine pertinent issues and potential constraints for problem solving regarding supply chain management
Develop distribution solutions based on supply chain management principles that address network inefficiencies
Recommend appropriate cost-saving strategies and risk mitigation plans for supply chain implementation
Prompt
Using the provided Walmart China case study, create a supply chain evaluation in which you assess Walmart in terms of its demand forecasting, sourcing,
transportation, and warehousing processes in order to develop SCM recommendations that will reduce costs and risks to the business operation. It is strongly
recommended that you thoroughly review the prompt below before you read the case study, and you should continue to refer to the prompt as you read. You
should format your analysis and recommendations as if you were a consultant hired by Walmart.
Specifically, the following critical elements must be addressed:
I.
Executive Summary: In this section, explain the purpose of your brief and highlight key information and findings that will aid the understanding of the
more in-depth analysis and recommendations to follow.
II.
Demand Forecasting: In this section, first assess the supply and demand side of Walmart’s product flow, including the customer’s needs and the
supplier’s capabilities, in order to then identify potential alignments that will keep cost and waste at a minimum.
A. Evaluation
1. Analyze Walmart’s suppliers in terms of their abilities to meet the demand of customers during steady-state and peak operations. How
effective are each supplier’s inventory reorder points and economic order quantities? Support your analysis with quantitative examples.
2. Additionally, describe demand-forecasting constraints that exist within the supply chain. For example, consider the distance of the
stores and the compatibility of the products in terms of shipping, storage, and so on.
B. Recommendations: Based on your evaluation, recommend strategies for better aligning the supply and demand side of Walmart’s product flow
that will keep cost and waste at a minimum.
III.
Sourcing: In this section, first evaluate the network sourcing strategy of Walmart in order to then identify possible areas in need of improvement that
will leave room for future expansion.
A. Evaluation: Assess the current network sourcing strategy and determine whether or not the number and quality of suppliers is the optimal mix
for the operation. To what extent do the current suppliers meet steady-state and peak demand? Are they consistently providing products that
meet or exceed Walmart’s quality standards? Defend your assessment with examples.
B. Recommendations
1. Recommend a strategy to optimize the sourcing network that takes into account current operations and leaves room for future
expansion. Be sure to consider any alternative sources of materials available to the organization in your response.
2. Recommend a standard procedure for vetting suppliers to ensure that they are compliant with the corporate social responsibility
guidelines of Walmart.
3. Make sure that you have recommended the best sourcing practices for Walmart using appropriate quantitative methods.
IV.
Transportation: In this section, first consider the effectiveness of Walmart’s transportation network in order to then determine possible cost savings
without sacrificing performance.
A. Evaluation
1. Identify constraints within the transportation network and discuss the impact they will have on the overall supply chain operation. Be
sure to provide specific examples to illustrate.
2. Analyze the transportation network and determine whether or not the correct modes of transportation are being used based on time,
cost, and quantity.
B. Recommendations: Make recommendations on how to improve the transportation network given the constraints you identified, using specific
examples to illustrate and justify your claims.
V.
VI.
Warehousing: In this section, first analyze Walmart’s warehousing network to in order to then determine requirements and develop recommendations
for adequately meeting current and future storage needs.
A. Evaluation
1. Analyze the current warehousing infrastructure to determine if the current warehousing network adequately meets storage needs.
Additionally, consider eventual expansion requirements of Walmart’s operation. What are the constraints or restrictions involved in the
possible locations?
2. Identify considerations for special handling of hazardous materials and describe their impact on warehousing for the current mix of
products that Walmart’s SCM is handling, using specific examples.
B. Recommendations
1. Determine warehousing requirements that will ensure adequate availability of resources for the organization. Support your proposed
requirements with given production and demand elements from the scenario.
2. Based on your determination of requirements, recommend a warehouse design that will minimize movements between functions and
reduce costs. Explain how your recommendation will drive this improvement throughout the network, considering facility costs,
inventory carrying costs, personnel costs, and equipment costs.
Conclusions: In the final section, take a critical look at your various recommendations in order to develop final conclusions for Walmart.
A. Prioritize your demand-forecasting, sourcing, transportation, and warehousing recommendations based on efficiency gain, cost, and
sustainability.
B. Discuss the feasibility of your recommendations based on supply chain constraints of Walmart in the case study. Justify your claims with specific
evidence.
Milestones
Milestone One: Demand Forecasting and Sourcing
In Module Three, you will submit an assessment of the supply and demand of Walmart and product flow, as discussed in the Walmart China: Supply Chain
Transportation case study. You will also evaluate the network sourcing strategy of Walmart to identify areas that may be in need of improvement and will leave
room for future expansion. This milestone will be graded with the Milestone One Rubric.
Milestone Two: Transportation and Warehousing
In Module Five, you will submit an evaluation of Walmart’s transportation and warehousing networks, focusing on constraints, modes of transportation,
infrastructure, and special handling requirements. You will also make recommendations to improve transportation. This milestone will be graded with the
Milestone Two Rubric.
Final Submission: Supply Chain Evaluation
In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should
reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.
Final Project Rubric
Guidelines for Submission: Your supply chain evaluation should be 12–15 pages, double spaced, with one-inch margins, 12-point Times New Roman font, and
APA citations when applicable.
Critical Elements
Executive Summary
Exemplary (100%)
Meets “Proficient” criteria, and
the executive summary reflects
a concise, effective
communication style
Demand Forecasting:
Evaluation: Suppliers
Meets “Proficient” criteria, and
analysis reflects deep insight
into operational and logistical
issues related to supply chain
management
Demand Forecasting:
Evaluation:
Constraints
Meets “Proficient” criteria, and
description reflects a nuanced
understanding of constraints
that impact problem solving in
supply chain management
Meets “Proficient” criteria, and
recommendations reflect
advanced ability to strategically
reduce costs and mitigate risks
in the supply chain
Demand Forecasting:
Recommendations
Sourcing: Evaluation
Meets “Proficient” criteria, and
assessment reflects a nuanced
understanding of issues that
impact problem solving in
supply chain management
Proficient (85%)
Explains the purpose of the
brief and highlights key
information that supports the
analysis and recommendations
of the brief
Accurately analyzes suppliers’
abilities to meet customer
demand during steady-state
and peak operations using valid
supporting quantitative
evidence
Describes all relevant demand
forecasting constraints of the
supply chain using specific
details
Needs Improvement (55%)
Discusses the purpose of the
brief or highlights certain
information, but there are gaps
in necessary detail
Not Evident (0%)
Does not include an executive
summary
Value
2
Discusses the suppliers’ abilities
to meet various customer
demands, but there are gaps in
necessary detail, accuracy, or
the quantitative evidence
Does not discuss the suppliers’
abilities to meet various
customer demands
6
Discusses demand forecasting
constraints but fails to consider
all relevant constraints or cite
specific details
Does not discuss demand
forecasting constraints
5
Recommends appropriate
strategies for better aligning
the supply and demand sides of
the product flow that would
effectively keep cost and waste
at a minimum
Assesses the current network
strategy to determine how
optimal the supplier mix is for
the operation, citing specific,
supporting evidence
Discusses strategies for better
aligning the supply and demand
sides but fails to recommend
fully appropriate strategies that
would effectively keep cost and
waste at a minimum
Discusses the current network
strategy in terms of the supplier
mix, but there are logical gaps
in the assessment, or the
assessment is not sufficiently
supported with specific
evidence
Does not discuss strategies for
better aligning the supply and
demand sides of the product
flow
5
Does not discuss the current
network strategy
5
Sourcing:
Recommendations:
Strategy to Optimize
Meets “Proficient” criteria, and
recommendations reflect a
particularly shrewd or creative
ability to apply supply chain
principles to address network
inefficiencies
Recommends an effective
strategy for optimizing the
sourcing network that takes
into account current operations
and leaves room for future
expansion
Sourcing:
Recommendations:
Vetting Suppliers
Meets “Proficient” criteria, and
recommendations reflect
advanced ability to strategically
reduce costs and mitigate risks
in the supply chain
Recommends an appropriate
standard procedure for vetting
suppliers that would reasonably
ensure compliance with social
responsibility guidelines
Sourcing:
Recommendations:
Quantitative Methods
Meets “Proficient” criteria, and
recommendations reflect
advanced ability to apply
quantitative methods to supply
chain management issues
Presents sourcing
recommendations based on
and supported by appropriate
quantitative methods
Transportation:
Evaluation:
Constraints
Meets “Proficient” criteria, and
response reflects a nuanced
understanding of constraints
that impact problem solving in
supply chain management
Meets “Proficient” criteria, and
claims reflects deep insight into
operational and logistical issues
related to supply chain
management
Identifies all relevant
constraints within the
transportation network and
discusses their impact using
specific examples
Makes valid claims about the
effectiveness of current modes
of transportation based on an
accurate analysis of time, cost,
and quantity
Meets “Proficient” criteria, and
recommendations reflect
advanced ability to strategically
reduce costs and mitigate risks
in the supply chain
Recommends sound
improvements to the
transportation network that
address all of the concerns and
constraints identified in the
transportation evaluation using
specific examples
Transportation:
Evaluation: Modes of
Transportation
Transportation:
Recommendations
Discusses a strategy for
optimizing the sourcing
network but fails to propose a
fully effective strategy that
takes into account current
operations and potential future
expansion
Discusses a standard procedure
for vetting suppliers, but fails to
propose a fully appropriate
procedure that would
reasonably ensure compliance
with social responsibility
guidelines
Presents sourcing
recommendations that have
some basis or support from
quantitative methods, but
there are gaps in the
application or inappropriate
methods are used
Discusses constraints within the
transportation network but fails
to address all relevant
constraints or fully discuss their
impact using specific examples
Discusses the effectiveness of
current modes of
transportation, but not all
claims are valid or based on an
accurate analysis of time, cost,
and quantity
Discusses improvements to the
transportation network but fails
to make fully sound
recommendations that address
all of the concerns and
constraints using specific
examples
Does not discuss a strategy for
optimizing the sourcing
network
9
Does not discuss a standard
procedure for vetting suppliers
5
Does not present sourcing
recommendations with a basis
or support from quantitative
methods
6
Does not identify constraints
within the transportation
network
5
Does not make claims about
the effectiveness of current
modes of transportation
6
Does not discuss improvements
to the transportation network
5
Warehousing:
Evaluation:
Infrastructure
Meets “Proficient” criteria, and
analysis reflects deep insight
into operational and logistical
issues related to supply chain
management
Reasonably analyzes
warehousing infrastructure to
determine its adequacy for
meeting current and potential
future storage needs
Warehousing:
Evaluation:
Hazardous Materials
Meets “Proficient” criteria, and
response reflects a nuanced
understanding of issues that
impact problem-solving in
supply chain management
Identifies all relevant
considerations for special
handling of hazardous materials
and describes their impacts on
warehousing using specific
examples
Warehousing:
Recommendations:
Requirements
Meets “Proficient” criteria, and
proposal reflects a particularly
shrewd or creative ability to
apply supply chain principles to
address network inefficiencies
Proposes valid warehousing
requirements that ensure
adequate availability of
resources based on given
production and demand
information
Warehousing:
Recommendations:
Warehouse Design
Meets “Proficient” criteria, and
recommendations reflect
advanced ability to strategically
reduce costs and mitigate risks
in the supply chain
Recommends a warehouse
design that minimizes
movements between functions,
reduces costs, considers all
relevant constraints, and is
justified with specific evidence
Conclusions: Prioritize
Meets “Proficient” criteria, and
prioritization reflects a deep
understanding of key supply
chain principles
Appropriately prioritizes all
recommendations based on
efficiency gains, cost, and
sustainability
Conclusions:
Feasibility
Meets “Proficient” criteria, and
response reflects a nuanced
understanding of constraints
that impact problem solving in
supply chain management
Reasonably justifies all claims
about the feasibility of each of
the brief’s recommendations
based on the constraints of the
supply chain
Discusses warehousing
infrastructure but fails to
reasonably determine its
adequacy for meeting all
current and potential future
storage needs
Discusses considerations for
special handling of hazardous
materials but fails to identify all
relevant considerations or to
describe their impacts on
warehousing using specific
examples
Discusses warehousing
requirements, but fails to
propose fully valid
requirements that would
ensure adequate availability of
resources based on production
and demand information
Discusses a warehouse design
but fails to recommend and
fully justify a design that would
effectively minimize
movements between functions
and reduce costs while
considering all relevant
constraints
Discusses the relative merits of
the recommendations but fails
to logically prioritize each based
on efficiency, gains, cost, and
sustainability
Discusses the feasibility of the
brief’s recommendations, but
fails to justify all claims based
on the constraints of the supply
chain
Does not discuss warehousing
infrastructure
6
Does not discuss considerations
for special handling of
hazardous materials
5
Does not discuss warehousing
requirements
9
Does not discuss a warehouse
design
5
Does not discuss the relative
merits of the recommendations
9
Does not discuss the feasibility
of the brief’s recommendations
5
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
Total
2
100%
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