Challenges of Strategic Supply Chain Management in Walmart

Running head: STRATEGIC SUPPLY CHAIN MANAGEMENT
STRATEGIC SUPPLY CHAIN MANAGEMENT
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STRATEGIC SUPPLY CHAIN MANAGEMENT
Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Challenges of supply chain of Walmart.....................................................................2
Challenges of the oil pricing......................................................................................2
Challenges of information technology.......................................................................4
Challenges in the sustainability..................................................................................7
Challenges associated with the reshoring strategy.....................................................8
Solution for the challenges.......................................................................................10
Conclusion....................................................................................................................11
References....................................................................................................................12

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Introduction
The company Walmart has been considered as the largest retailer who are operating
from within 15 countries and as per the company, the supply chain management is considered
by the company as the most crucial source using which the organisation develops and it also
achieves the significant status. According to recent coverage of an event, it has been
announced by management of Walmart to the suppliers of the company that they could
perform the auditing and then disclosing the costs of the products. The aspects of the
challenges of the supply chain management with the Walmart Company has been briefly
described in this report.
In other words the company invited almost 100,000 corporates globally to perform
auditing and evaluating the environmental and social strengths. It could significantly lead to
the decreasing in the wastage afterwards the evaluation and improvise the returns. The
company designs the supply chain for consolidation of the information regarding the water
usage, discharges of the environmental friendly gas, the strong waste grounding and the
worker morals within the database.
Discussion
Challenges of supply chain of Walmart
The major challenges of the supply chain of Walmart are significantly impacting and
it leads to diminishing of the capabilities of the working of the organisation. The major issues
that is currently residing within the organisation is supply chain integration.
Challenges of the oil pricing
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

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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