Posted on by Judy

1. Given Walmart’s historical supply chain strategies, what is the motivation behind Walmart’s most recent announcement to close Sam’s stores, and to convert some to distribution centers? 2. Do you agree or disagree with the Sam’s closures announcement from a supply chain perspective – and why? What would be your alternative recommendation from a supply chain perspective and why – if any? Can you type it please thanks.

1. Given Walmart’s historical supply chain strategies, what is the motivation behind Walmart’s most recent announcement to close Sam’s stores, and to convert some to distribution centers?
The competitive advantage of Wal-Mart is its ability to managing its huge supply chain efficiently and effectively. Wal-Mart operates world’s most efficient supply chain system and its logistics, distribution, and inventory control system to serve its customers by providing goods at lowest prices.
Wal-Mart is a prime example how supply chain management provides the company with a sustainable, competitive advantage, such as quick response time, low cost, state-of-the-art quality design, or operational flexibility.
However, the strategy of the Wal-Mart is to deliver the items directly to the stores to save the cost of warehousing and distribution. Most of the stores are integrated with systems that provide suppliers information about current inventory level and thus automatically places an order for delivery to store. So, the thought of using the closed stores as warehouses and not even telling which one will be closed and which one will be converted creates suspicion. This more seems a PR strategy to reduce the impact from the public from the company who is 1st in fortune 500 companies.
 
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