Challenges of Supply Chain Management in Walmart

Assignment 2 - Recommendations for Supply
Network improvement
Topic - the Walmart Company
Task:please write in this report only
As you can seeI have completed most of the sections of the report but
In some parts I AM confused, so write them accordingly
I have highlighted in yellow in some of the headings and have
mentioned clearly which of those sections that you should write.
You can find some challenges and solutions are missing, so please
write a good logical report and the grammar should be good as well
Please write a logical report without any grammar errors and
plagiarism
Task description: ( assignment requirement)
you will need to pick 4-5 key supply chain challenges directly affecting your selected organization.
These challenges are mainly created by the external environment, such as oil prices, technological
challenge, sustainability, reshoring .
Try to include these topics in each of the challenges: First, identify and explain the
given challenge, what the challenge is, why it is a challenge, why it is important
(state rationale), Second, discuss the implication of the challenge on the company,
what is the impact now, and what will be the impact in future (the coming decade!),

how the company is/will be coping, what's not happening/working and finally offer
some recommendation to tackle this challenge.
- Please check marking criteria/rubric for assessment 2. You will see that there is a
heavy weighting on your assumptions and imagination, that means you need to take
a futuristic perspective and assume something that will happen in the future and offer
recommendations accordingly. Further, there is a huge weighting for the use of
references. You really need to support your idea through your detailed research and
use various perspective in each of the challenges. If you are using a particular
model, please go ahead but also make sure that you referred to other sources as
well for a convincing discussion.
MY ASSIGNMNET STARTS HERE
Discussion
Challenges of supply chain of Walmart- ( Can you write a small paragraph about
an overall challenges that the company is facing LIKE A introduction for
challenges (not introduction paragraph for Walmart company )just to get a
small idea of what the report is about , which looks good for the readers )
This report highlights some challenges of supply chain management
faced by Walmart in the retail sector. These challenges stand in the way of
development of the company in the long run. Issues and solutions have
been discussed in this report. Challenges from increasing oil prices,
information technology, and reshoring have been discussed. Sustainability-
related issues also exist for the company. For addressing the issues, several
solutions have been discussed in this report.

1. Challenges of the oil pricing( I have written, no need to change )
Within the recent years of the company, providing the altering business realities
associated with the globalisation, the issues of the supply chain is the prime concern of the
management of the company (Hugos, 2018). The petroleum products are extensively
exploited within the economies of the world that has led to the increase of the prices of oil
and the petroleum products. In the Walmart Company, the use of the fuels is significantly
done for allowing the rapid supply of the products to the customers and achieve growth. This
challenges is significantly important for business as it leads to the increase in the prices of the
products due to the increase in the production costs. The diesel and the gasoline are
commonly the primary fuels that are used in the road transport. Oil is extensively used in the
power generation that accounts for almost 11 percent of the complete electricity and help the
company to achieve growth (Shin &Eksioglu, 2015). The adequate and reliable supply of the
transport services and the electricity in the turn are significantly for the economic
development. If the pricing mechanism is based on the average deduced from specific time
period of the world prices, it might be easy to effectively predict the time duration when next
fluctuation might take place (Chae, 2015).
The major issue to the supply chain of the organisation is faced when there is
significant rise in the prices of the oil. The logistics of the company is directly dependent on
prices of oil in the economy. When the price of oil is significantly high, it leads to the
increase in the price of the products that might not be suitable for the customers and for
maintaining the constant business, the company is required to sell the products at the lower
costs than the production costs. The prices of the fuels and the food that are traded
internationally have increased in the recent times and it has been observed that it has been
fluctuating ever since. The fiscal breakeven price of the oil that is required for balancing the
budget in the major oil exporters is rising sharply within the past few years that makes it the

prospect of the prolonged periods of the low prices that are unlikely in future (Ghosh & Shah,
2015). Equivalently important, marginal cost of the oil production within 2011 was
significantly high and it has been predicted that it could rise further if this is the major trend
that is being followed. (Sanders, 2016). The governments are forced to execute the reforms
within the policies due to the frequent fluctuations .The impact of the rising oil prices has
been discovered by the fact that the company is significantly hit by the rise of the fuel prices
as it specialises in the delivery of the products to the customers by their own and there have
been decrease in the growth that could be achieved by the company. With the increase in the
fuel prices, the supply chain of the company was required to implement the modern day
technologies and the machineries that would help in reduction of the fuel consumption
(Hackius& Petersen, 2017). In future, it has been predicted that the company might need to
invest huge capital for the introduction of the modernised technology for the proper fuel
management or the introduction of renewable energy that could be used by the logistics of the
company. Even though the company introduced the modern machineries, the company faced
the significant setback as significant capital was invested while the purchasing of the
machineries was being done (Christopher, 2016). The supply chain of the company was also
damaged as there was a requirement of providing the required training to the employees for
properly working with the machineries that are being introduced in the company and till the
time, the employees become fluent with the working of the machineries, the effective
production was significantly hampered and it was observed that it lowered exponentially.
2. Challenges of information technology
The implementation of the information technology in the supply chain management of
the organisation are helping the organisation to achieve significant growth and increase the
productivity. The challenges related to the information technology is the improper integration
of the processes with the information technology. This challenge is important for the business