Transport and Inventory Management Report 2022

Running head: TRANSPORT AND INVENTORY MANAGEMENT 1
Transport and Inventory Management
Name
Institution

TRANSPORT AND INVENTORY MANAGEMENT 2
Table of Contents
Executive Summary..................................................................................................... 3
Transport and Inventory Management........................................................................... 4
Topic 1.............................................................................................................. 4
Topic 2.............................................................................................................. 9
References.............................................................................................................. 14

TRANSPORT AND INVENTORY MANAGEMENT 3
Executive Summary
Intermodality/multimodality are concepts in transport and logistics that most, if not all
companies are trying to adopt. This is in response to the global changes in the transport and
logistics industry, including increased demands for safety and efficiency. This means that
companies are not only looking for faster and cost-effective ways of transporting freight, but
are also considering the environmental impact of the same (Banker, 2013). This report
looks at how Walmart has adopted multimodality and the advantages and challenges
associated with this move. It is evident from the findings, that Walmart has had more to gain
from enhancing intermodality/multimodality in comparison to the disadvantages it has
experienced. Warehouse management is also important in the supply chain as it includes
inventory handling. This report looks at the ways in which Walmart manages its distribution
centres, including an examination of their order picking principles. There is evidence of how
its warehouse management strategies act in response to the increased competition from e-
commerce providers such as Amazon (Bose, 2016). Evidently, Walmart’s operations in
recent years have been centred on enhancing their e-commerce platform, while ensuring that
its existing mode of business remains effective. Operations at their distribution centres have a
lot to contribute to this growth, as this report goes to show.
Topic 1
Identify and explain its intermodal/multimodal transportation choices
Walmart is the leading retailer in the United States. Walmart has an excellent distribution
and logistics system. Worldwide, Walmart has over 158 distribution centres. The distribution
centres for Walmart are only 200 miles apart. In global business expansion, Walmart
considers the strategic location to ensure that between 90 and 100 stores can be built around
for purposes of smooth distribution of materials in the stores. Today, Walmart distributes its
products using over 55,000 trailers, 7,000 drivers, and 6,500 tractors. The use of trailers and
tractors is mainly used when transporting products within the same country. However,
Walmart has been relying on train, ocean, and air transport will transporting cargo from one
country to another.
Multimodal transport involves the use of a combination (two or more) of transportation
modes to deliver freight to a final destination. Despite the use of various carriers, multimodal
transport involves a single bill of lading. This mode of transportation often makes use of a
single carrier, a multimodal transport operator, who is responsible and legally liable for the
whole process (Alain Martel, 2016). The benefits of multimodal transport include increased
efficiency, fewer documentation for the consignor, reduced costs and limited risks (Jesus
Cambra‐Fierro, 2009). Other than simplifying the transportation process, multimodal
transport also ensures easy communication, as the consignor only deals with a single service
provider. Walmart uses multimodal transport to guarantee faster transit of freight.
Loading point at
distribution centre (Country
A)
Offloading point at final
destination (Country B)

TRANSPORT AND INVENTORY MANAGEMENT 4
Figure 1: An example of flow of goods in multimodal transport between two countries
Intermodal transport just like multimodal, involves a combination of two or more modes
of transport. However, in intermodal transport the freight is placed in a container or vehicle
across all modes without having to handle the freight when changing the mode (Alain
Martel, 2016). Also, different bills of lading are used in intermodal transport for each
carrier. Walmart uses intermodal means to transport products of high value. For example, the
use of air transport to move vegetables and other grocery products from one country to
another and have a lorry standby in the airport to transport these products to their deserved
destination without any delay. Using this approach is cost effective to Walmart and increases
the efficiency of business operations across all worldwide centres.
Figure 2: A simple illustration of the processes involved in intermodal transport
Examine how this company can increase the intermodality/multimodality in its supply chains,
for some or all of its product categories
Intermodal/multimodal transport has gained tract over the last few years as more and more
companies embrace it as their preferred mode of transport (Jesus Cambra‐Fierro, 2009).
This means that Walmart has to customize its products and services in a manner that
increases the company’s use of intermodal transport. Most customers prefer intermodal
transport because of the guaranteed safety of their cargo and also efficiency. Freight volume
Land transport
(rail, road)
Land transport
(rail, road)
Sea, air transport
Loading of
cargo
Selection
of
appropriat
e mode of
transport
Final
destinatio
n and
unloading
of cargo