Global Supply Chain Network Design Discussion 2022

Discussion: Global Supply Chain Network Design
Module 2
LGMT 683 Supply Chain Management
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CONTENTS
RISK MITIGATION STRATEGIES BY WALMART...............................................................................3
SUPPLIERS AND VENDOR RISKS.....................................................................................................3
INDUSTRIAL RISKS.............................................................................................................................3
FINANCIAL RISKS...............................................................................................................................3
REFERENCES............................................................................................................................................4

RISK MITIGATION STRATEGIES BY WALMART
Wal-Mart being a global brand has various risk mitigation strategies to cope with
different internal and external situations. Risk Management Plan developed by Wal-Mart
includes significant steps of execution as per the situations and corporate environment. It has a
team of 550 trained professionals to manage and mitigate company’s risks.
SUPPLIERS AND VENDOR RISKS
To manage the risks related to supply chain management have reduced and controlled by
the execution of suitable audits, programs and training sessions. The supply risks of Wal-Mart
has reduced and managed by support of strong network of suppliers such as Governmental,
NGOs and other companies to sustain with a collaborative approach to regulate suppliers and
vendors risks management (Yoon et.al. 2018). The company has different vendor risk
management software to operate and establish strategic pathways to facilitate different vendors.
Similarly, usage of software like supplier relationship management has also used to monitor risks
related to suppliers and distribution channels.
INDUSTRIAL RISKS
Wal-Mart inhibits an aim of developing technological frameworks to establish a strong
mitigation strategy. With the help of suitable market inspections and training to employees, Wal-
Mart has reduced all political and corporate risks of the market (Mazouni, 2018). To reduce
market risks related to emerging and other global markets, Wal-Mart has established a strong
collaborative approach of professionals and employees to look after the nature of different
markets and plans accordingly.
FINANCIAL RISKS
To mitigate the financial risks, Wal-Mart has planned strategies to overcome any
financial risks. By developing strategic investments plans, cost cutting, increasing sales and
decreasing loans. With the help of strategic economic operations, Wal-Mart has mitigated the
risks related to e-commerce economic instability (Colla, 2018). The strategic connections with
investment planners, stakeholders and financial sources and with high profit margins, the
company has stabilized its economic disruptions till now.
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REFERENCES
Colla, E. (2018). Risks, Strategic Options and Prospects for Commercial Distribution Faced with
the Challenges of Sustainable Development. In Food Retailing and Sustainable
Development: European Perspectives (pp. 155-169). Emerald Publishing Limited.
Mazouni, M. (2018). The Effect of Global Investment Decisions and Financial Risk on
Multinational Corporations: Walmart Corporation Case Study. Available at SSRN
3257136.
Yoon, J., Talluri, S., Yildiz, H., & Ho, W. (2018). Models for supplier selection and risk
mitigation: a holistic approach. International Journal of Production Research, 56(10),
3636-3661.
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