Why wal mart has been very successful

I hate wal mart!

Why wal mart has been very successful

Saturday, February 11, Analyzing Wal-Mart's Distribution and Logistics System Wal-Mart has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management.

Discuss in detail the distribution and logistics system adopted by Wal-Mart. In the United States alone, the company has more than 40 regional distribution centers for import flow and more than distribution centers for domestic flow Logistics, 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 75 to retail stores within a mile area. If shortages do occur, replenishment can be made more quickly because stores receive daily deliveries from distribution centers. The use of trucks raises transportation costs but is justified in terms of reduced inventory.

Merchandise brought in by truck to distribution centers is sorted for delivery to stores within 24 to 48 hours. However, certain goods, such as automotive and drug products, are delivered directly to stores by suppliers.

Why wal mart has been very successful

Wal-Mart, a pioneer in the logistics technique of cross-docking, also has store-specific orders packed and shipped directly to the store by the manufacturer. From the onset of his retailing career, Wal-Mart 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 thanaccident-free miles and whom it believes will be committed to customer service. Because unloading is done at two-hour intervals during the night, a driver is expected to spend the night, returning to the distribution center at a pre-scheduled time with an empty trailer.

Violations are dealt with according to handbook procedures, which include employee education to prevent future occurrences of incorrect actions. By effectively managing every aspect of its transportation operations and treating its drivers fairly, Wal-Mart gets results that are unrivaled in the logistics arena.

Rules are a key to consistency, which leads to preparedness, which then leads to proper execution Pennington, "Everything we've done since we started Wal-Mart has been devoted to this idea that the customer is our boss." "We exist to provide value to our customers, we pretty much stick to what we believe in because it's proven to be very, very successful." "I enjoyed doing what I was doing so much and seeing the thing grow and develop.

When questioned about Wal-Mart's secrets of success, Walton has been quoted as saying, "It has to do with our desire to exceed our customers' expectations every hour of . Wal-Mart has a very well deserved reputation for selling a huge variety of things at the lowest retail prices.

Wal-Mart: Information Systems WMT has long been on an upward trajectory in terms of growth, but that may no longer be true. According to the Wall Street Journal, this was Walmart's largest one-day drop in price in more than two years.
25 Businessmen Who Broke The Rules (And Some Laws) It started with a single store in Rogers, Arkansas in and has grown to what is now the worlds largest and arguably, the most emulated retailer. Some researchers refer to Wal-Mart as the industry trendsetter.

How they do this is complex, involving a huge amount of bargaining power with suppliers, a highly effective system for stocking and distribution, and not paying their employees very well.

Walmart Inc. (formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in and incorporated on October 31, It also owns and operates Sam's Club retail warehouses.

7. Henry Ford. The father of the modern automobile, founder of the Ford Motor Company, and inventor of the moving assembly line was a highly unconventional business arteensevilla.com Ford challenged his times (and his investors) by insisting on producing affordable automobiles for a mass market.

In Mexico, the recent slowdown in the economy has been the main reason responsible for Wal-Mart’s dismal sales. In China, however, the company’s problems are much deeper.

Jimmy Alyea, MBA: Analyzing Wal-Mart's Distribution and Logistics System