Analytical Report on Walmart's Procurement and Supply Chain Management

This project presents an analytical report on Walmart's procurement and supply chain management. The report begins with an overview of Walmart, its global presence, and its position in the retail industry. It delves into Walmart's supply chain structure, emphasizing procurement, distribution, logistics, and technology. Key issues are identified, including pricing pressures on suppliers, inventory management problems, and operational challenges like customer service issues. The report discusses the challenges in conducting the assessment, such as sourcing credible information, and proposes strategies to address these issues, including leveraging online databases and focusing on customer demand forecasting. The report is supported by references to relevant sources.

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Procurement supply chain management

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Walmart
Walmart was launched in the year 1962 which is a global brick-and-mortar as well as e-
commerce retail company with stores in United States and more than 14 countries. Currently,
Walmart is the largest and most profitable retail company in the world (Walmart, 2019a).
Walmart has been a retail dream for many other companies. Walmart has been highly
competitive in the retail industry with its mission of having a cost advantage and comparatively
lower prices than other retailers in the area. This multinational retail corporation operates in a
chain of supermarkets, hypermarkets, departmental stores and grocery stores. Walmart is
currently headquartered in Bentonville, Arkansas. The company has more than 275 million loyal
customers visiting in multiple stores of Walmart (Walmart, 2019b). Since the company operates
in e-commerce sector also, it has created a niche in that sector too giving a tough competition to
companies like Amazon. In 2019, Walmart generated a revenue of $514.4 billion becoming the
world's largest retailer. It employs more than 2.2 million associates from around the world
operating in different countries.
The supply chain management of Walmart
The emphasis on the supply chain management has made Walmart a global leader in the retail
industry (Ladd, 2018). The company has gained success since it has adapted according to the
requirement of the industry and committed to utilize strategic options to build a robust supply
chain network. Wal-Mart's supply chain comprises of the procurement and distribution, effective
logistics, inventory management and use of latest technology. Although considering these
factors, Walmart has been under many questions due its supply chain strategy.
Supply chain issues
Walmart has been working closely with its suppliers such as Unilever, Heinz and Johnson &
Johnson (Walmart, 2019c). Recently, there having issues with regards to Walmart suggesting the
suppliers to reduce their prices. This would have a direct impact on the suppliers, their
immediate wholesalers as well as the producers. Since reduction in price can impact the entire
supply chain network, Walmart should consider this. Apart from that, the lack of proper
inventory management and retail execution has been a matter of issue from the past few years.
Walmart has been scrutinizing its supplier selection and evaluation process, but there are certain

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suppliers which may disrupt the supply chain. The expenses made on domestic merchandising
can be more beneficial than sourcing the products.
Operation issues
One of the biggest challenges the company is currently facing is issues of customer service.
Many studies have identified the average customer rating is low. Another operational issue is
failing to address the unmet demands of the customers of seasonal items. The operations have
been hampered due to inventory management.
Challenges in relation to complete the assessment
The possible challenges would be identifying credible sources for Walmart. Another issue can be
identified that the current supply chain management issues and understanding the issues with
regards to internal operations of the management.
Plans and strategies
The foremost issue is identifying credible sources, which can be procured from online data bases
Google scholar and annual reports of Walmart. The company also requires to emphasize more on
catering to the demands of the customers and also forecasting the rate of demand of products and
accordingly manage the inventory.

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References
Ladd. B. (2018). Playing To Its Strengths: Why Walmart Must Focus On Its Stores and Logistics.
Retrieved from https://www.forbes.com/sites/brittainladd/2018/09/09/playing-to-its-
strengths-why-walmart-must-focus-on-groceries-stores-and-logistics/#4a41a2b31e06
Walmart. (2019a). About Us. Retrieved from https://corporate.walmart.com/our-story
Walmart. (2019b). Our Business. Retrieved from https://corporate.walmart.com/our-story/our-
business
Walmart. (2019c). Supporting local, diverse and small businesses. Retrieved from
https://corporate.walmart.com/2017grr/opportunity/supporting-local-diverse-and-small-
businesses