Exploring Supply Chain Strategies of Amazon and Walmart

Running head: SUPPLY CHAIN 1
Supply Chain
An Exploration of Supply Chain Strategies that exist across two Similar Global
Retailers (Amazon.com and Wal-Mart Stores Inc)
Name
Institutional Affiliation
Author’s Note

SUPPLY CHAIN 2
A. Executive summary
The focus of this report is to explore the supply chain strategies which exist across
Amazon and Walmart. The paper explains the manner in which Amazon and Wal-Mart have
continued to assert their dominance of the mass merchandising as well as online retailing
industrial segments. The paper explains the supply chain strategies employed by the two
companies in ways that help them to reinforce and also be in a position of sustaining their
competitive advantages in such a low margin and highly competitive industry. By using the
case studies of Walmart and Amazon as case studies, the paper commences by examining the
two companies’ positions within their corresponding segments in the industry. The paper then
explores each of the companies supply chain strategy, design as well as processes. In the
aftermath of understanding each of Amazon’s and Walmart’s supply chain strategies, we
shall conduct an analysis of the linkage between the supply chain strategy and each of the
business’s strategy. The paper finally discusses the commonality as well as transferability
associated with Wal-Mart and Amazon.com’s supply chain practices across other industries
as well as within the retail industry.

SUPPLY CHAIN 3
Table of Contents
Scope, context, and significance...................................................................................4
Introduction...............................................................................................................................4
Retail industrial statistics.................................................................................................6
(i)Trends and drivers within the retail industry...................................................6
Agile Strategy supply chain strategy for retailers..............................................7
Lean strategy for retailers................................................................................................8
Challenges of the Retail Supply Chain.......................................................................8
Analysis of the case study...............................................................................................11
(i)Wal-Mart Case study......................................................................................................11
(ii)The Supply Chain Processes and Network for Wal-Mart.........................12
(iii)Replenishment processes........................................................................................13
(iv)Wal-Mart Chain Initiatives.......................................................................................14
(v)Wal-Mart Business and Supply Chain Strategies.........................................15
the Amazon.com case study...........................................................................................16
(i)Amazon.com supply chain network, operating model, and different
processes..................................................................................................................................17
(ii)Amazon.com supply chain Initiatives.................................................................18
(iii)Amazon.com supply chain and Business strategy.....................................18
The different similarities between Amazon.com and Wal-Mart................19
Conclusion.................................................................................................................................20
Recommendations to the different companies so that they improve
their retailing sales.............................................................................................................20
Proposed outline for the final paper.........................................................................21
References................................................................................................................................22

SUPPLY CHAIN 4
Scope, context, and significance
The retail industry has a massively huge scope. It is henceforth necessary to reduce
the scope in this analysis to specific retail segments. This thesis focuses on two segments of
the retail industry and these will include merchandising as well as internet retailing. To be in
a position of performing a deeper analysis for both internet retailing as well as
merchandising, the leader entity within each of these sub-segments is investigated (Poluha,
2016). On the basis of annual revenue, Walmart in the leader in the sub-segment of general
merchandising. On the other hand, Amazon.com leads in the sub-segment of internet
retailing. Each of Amazon.com and Wal-Mar has been subjected to analysis within this paper.
Introduction
The concept of the supply chain strategy is quite broad. Supply chain strategy is concerned with the
manner in which the supply chain should operate if it's to be competitive. In other words, the supply
chain strategy can be defined as an iterative process which involves the evaluation of the cost-benefit
trade-offs associated with operational components. The supply chain strategy entails the actual
organizational operations. It also involves the extended supply chain developed for the purpose of
meeting a specific objective of the supply chain. There are several reasons why an organization
should have an effective supply chain strategy. Essentially, a supply chain strategy helps to aid the
operationalization and support of an organization's business strategy. There comes a point in the
operations of an organization when they must execute the business strategy. This must typically be
done through an organization's operational components (Grenville, 2017). It is also the focus of the
Supply chain strategy to ensure that it helps the organization to drive down its operational costs while
also ensuring the maximization of its efficiencies. To develop an effective supply chain strategy, the
executives of the company must first and foremost evidently understand the manner in which the
organization chooses to engage in the competition (Grenville, 2017).
Retail industrial statistics
On the basis of the S&P general retail industrial report released in the month of May 2018, retail sales
have been continuously growing. There has been an unprecedented growth particularly in sales
concerning discounted as well as luxury goods. Wal-Mart is the biggest retailer in the world in terms
of the revenue generated. The retail industry grew further with the emergence of the internet. Internet-
related retail is made up of multi-channel retailers who are engaged in the operation of the online
channel as well as physical retail stores. Amazon.com continues to lead the way in terms of revenue
generated from purely online retailing.