MKT11445: Analysis of Walmart's Supply Chain Strategy and EFQM Model

This report provides an in-depth analysis of Walmart's supply chain strategy, focusing on the application of the EFQM Business Excellence Model. It begins with a brief overview of the EFQM model, explaining its role in enhancing organizational competitiveness and its relevance to Walmart's supply chain management. The report then delves into the practical application of the EFQM model within Walmart, examining how the company utilizes it to assess and improve its operations. Key components such as partnerships, resources, processes, and innovative product development are explored. The report also includes a justification of Walmart's supply chain strategy, highlighting the importance of sustainable relationships with partners and suppliers, efficient resource management, and the development of innovative products and services. The analysis is based on the coursework brief for the Building and Marketing High Performing Organisations module (MKT11445), and concludes with a discussion of how Walmart can further improve its supply chain to drive business excellence.

Marketing 1
MKT11445

Marketing 2
Executive Summary
This paper has been discussed about the various aspects of the supply chain strategy used by
Walmart organization. The paper includes the context of the Walmart organization that uses the
application of the EFQM business excellence model in their business to manage the supply chain
strategy. This model is used for the management of an organization and it is a non-profit
membership foundation in the business.
This model is developed to make organizations more competitive. This paper has been described
in the summary of this framework and the justification of the supply chain strategy. Walmart is
the largest revenue organization in United states works in the retail sector. It is an American
multinational retail corporation. The company adopted this model for better management and to
manage the competition in the market. This model is established in the year 1989 to increase the
competitiveness of the European economy. This provides several benefits in the different
management strategies used by the business organization. Walmart uses this model to manage
the supply chain aspects that are essential for the overall business.

Marketing 3
Contents
A brief summary of the EFQM Business Excellence Model..........................................................4
Application of the EFQM business excellence model and theory in the organization....................5
Justification of Supply Chain Strategy............................................................................................9
References......................................................................................................................................11

Marketing 4
A summary of the EFQM Business Excellence Model
The EFQM model is known as the European Foundation for quality management. This
model is made in the year 1989 to manage competitiveness in the economy of Europe. The main
concept of this model is to manage the Total Quality Management (Ezzabadi, et al., 2015). This
model is used for organizational management and designed to make the organizations more
competitive. Walmart becomes competitive in the market by using this excellence model. This
model is also used for the supply chain of the business as this is the most essential process of the
organization. There are several research studies conduct that explain the relationship between
the EFQM excellence model and the improved organizational results. The current level of
excellence is described by using this framework and it also helps in improving the efforts
(Gomez, et al., 2015).
The business decisions also become appropriate as per the requirements of the
stakeholders and also helps in achieving the several objectives of the organization. The supply
chain gets improved by using this model and also improves the overall profit of Walmart. The
model is used to include new ideas, concepts and learning (Escrig and Menezes, 2015 The
various components are also included in this model that are adding value for customers and
creating a sustainable future.
The basic concept of this model is that it enables the Wal-Mart company to evaluate the
potential gaps and the weakness so that the mission and the vision of the company can be easily
attained. It gives the path to the company which helps in operating the functions of the company.
The concept of excellence model focuses on the quality of the product and provides
improvement tools so that business can lead to sustainable success.

Marketing 5
Application of the EFQM business excellence model and theory in the organization
The theory of total quality management is used in this model to improve the quality of the
operations included in the organization. This is a non-perspective framework that is used by
Walmart to assess the different operations and activities (Yousefinezhadi, et al., 2015). The
vision and mission of the organization can understand after adopting this excellence model. The
concepts of this model make the customer attracted to the company and improve the overall
profits of the organization. This model also provides help to the organization in managing the
activities of the supply chain.
When the concept of this model is used in the organization then it improves its focus
towards the performance that needs to be systematic and structure process (Calvo-Mora, et al.,
2015). This model is used by any organization as it improves all the management practices and
helps to make the proper strategic direction. The overall economy of the organization also gets
improved by using this model (Suarez, et al., 2017).
Walmart has different improvement areas that need to be improved by using this
excellence model. Operations management is an important area that needs improvement in the
supply chain strategy and other strategies of the organization (Calvo-Mora, et al., 2015). It is an
important area for the business as well as the management activities and operations can be run
through this particular area. Along with this area of improvement, the organization has several
strengths that enable the organization to use this framework in the business market. The main
strengths of this organization include the design of goods and services, design of process and
capacity, quality management. Layout design and strategy, location strategy, human resources
job, and design and inventory management.
All these areas create strengths among the organizational activities so that it sustains in
the market to use the excellence framework. All of the organizational aspects need this
framework to improve the different strategies of the business (Shahin, et al., 2014). The revenue
of the organization gets improvement by analyzing the areas of improvement and different
strengths of the business organization. In the excellence framework, the different aspects are
used related to business operations. The relationships between partners and suppliers are also
included in this process. The different types of equipment, buildings, and resources are also

Marketing 6
considered in this framework. The strategy of excellence required different process and the
company also enable to make innovative products and services.
This aspect uses criterion 4 and criterion 5 for the better analysis of the strategies and impact of
this excellence framework in the business aspects. Criterion 4 includes the partnership and
resources related to the business organization and criterion 5 includes processes, products, and
services of the organization.
Example: By adopting this model the company Wal-Mart helps in forecasting the future demand
of the customers so they will arrange the products to meet the demands of the customers. There
were several challenges which the company has faced so this model of the EFQM business
excellence also helps the Wal-Mart company to address the unique organizational challenges and
helps in transforming the company according to that.
Criterion 4
 Process of maintaining sustainable relationships with the partners and suppliers.
Walmart needs to maintain sustainable relationships with the partners and suppliers and the
excellence model helps to maintain these relationships in a proper manner. Walmart needs a
better supply chain strategy to achieve several objectives of the business. This relationship
improves the overall aspect and allowing the customer to live a better life (Ali, 2012). Walmart
maintains the supply chain by reducing the prices and become popular among the people. They
collect goods from suppliers and manage their performance by managing the several activities of
the business. The excellence model provides great support to manage their partners and
suppliers.
As relations are better, the organization achieves more and more advantages in the business
market. The sustainable relationships are too effective in the overall process and the better
relations with partners and suppliers which is too effective for the organization (Doherty, et al.,
2006). The partners and suppliers manage several aspects of the organization so Walmart needs
to maintain the relationships with them for the proper objectives.
 Do they manage their buildings, equipment, and resources in a sustainable way?

Marketing 7
Yes, the organization manages its buildings, equipment, and resources sustainably.
These three aspects are too important for the organization and this management is possible by
using the excellence model. The sustainable process also used to manage the environment in a
proper manner (Michelson, et al., 2018). Sustainable relationships improve overall performance
and increase the several advantages in the organization. The overall management of the
buildings, equipment, and resources are better to maintain the effective process of the
organization.
The buildings, equipment, and resources are three efficient processes which make the
management process better. The excellence model is used to manage these aspects for better
advantages and this model itself helps in manage their buildings, equipment, and resources
sustainably (Li, et al., 2016). The buildings and resources are needed to be effective in
sustainable relations. Their management aspects are used for proper management in the business
organization.
Criterion 5
 Have they defined the key processes required to deliver their strategy?
The different key processes are required by the organization to deliver its strategy in the
market. The supply chain strategy is one of the important strategies used for overall
development. The supply chains are too effective in the overall process and this delivered the
different strategies in process management. The different key processes are defined by them to
manage the supply chain strategy in proper management (Emmett and Crocker, 2016). The key
processes used to maintain the supply chain that includes:
 Original sourcing or extraction of raw materials
 Selling finished products to the end-users
 Refining materials into basic parts
 Delivering finished products to end-users or consumers
 Assembling basic parts into finished products
All of the processes are needed for maintaining the strategy. The supply chain is one of the
important strategies that manage the overall process in the organization. The key processes are

Marketing 8
needed for better management strategies. The supply chain strategy is used to manage an
effective process.
 Do they develop new, innovative products and services?
Yes, Walmart developed new innovative products and services. The innovative products and
services are included in the overall process and this manages several aspects of the business.
Technological innovation and traditional retail businesses improve the overall aspects and
improve the different systems of the business. It has been determined that Walmart develops
new, innovative products and services (Tan, et al., 2018). The innovative products improve
customer attraction and increasing the profitability of the organization. The organization
achieves a better source of growth in increasing the overall aspects and it maintains several
differences among the business process. The retail innovation is one of the important processes
and it acquires the several strategies in the business process. The new innovative products and
services affect the overall profits of the business and improve the number of customers in the
organization. The development of new products and services create many innovations in the
organization.

Marketing 9
Justification of Supply Chain Strategy
The supply chain strategy is too important and too effective in the overall aspects of the
organization as this strategy uses by business excellence. The supply chain is one of the
important functions in the overall process and it is more effective in the retail sector. The
strategy of the supply chain pursues the business excellence model. Walmart becomes the largest
retail business by using a better supply chain strategy in the business process. Walmart and
supply chain are interrelated with each other (Heller, 2017).
Example: The supply chain strategy of the company Wal-Mart is that they will reduce
the cost of the operations by eliminating the unnecessary expenses in the company. They also
have on more strategy that they will involve in leveraging the core competencies so that the goals
of the company can be achieved.
Walmart becomes the world's largest process as they provide the customers with better
services and it affects the complex structure in the business. Walmart uses the supply chain
strategy for the better achievement of the objectives that are too efficient in the overall business.
The supply chain strategy contributes to the success of the business organization. The supply
chain innovation comes with the proper links of the chain from the initial level. Walmart began
working directly with the proper manufacturers to manage the supply chain in an effective
process.
As per the L.L. Bean, the important assets for the company are the customers as the
company Wal-Mart is dependent on them. To satisfy the customers by delivering the good
quality of the product is the main motive of the company. It is the opportunity for the company
to enhance its market share by serving the products to the customers which they are demanding.
The profitability in the company can be maintained by considering the wants of the customers
and deliver them with the best.
RADAR Element
Result
The company achieves several better results while using the supply chain management
strategy. By using the supply chain management strategy, Walmart achieves several competitive

Marketing 10
advantages which include the reduction in the cost of inventory, product costs become lower,
highly competitive pricing for the customer and improve the variety of stores. The low prices are
one of the best results achieved by Walmart after adopting the supply chain management
strategy.
Approach
There are several approaches used by Walmart to achieve success in the market. The
strategy of Everyday Low Prices is considered as one of the best approaches that are used for the
better management of the business. This approach provides several benefits to the business. This
approach is focused on keeping the prices as low as possible.
Deployment
Several steps are chosen by Walmart to deliver the supply chain management strategy in a
better process. The major steps include:
 Plan a wide range of activities
 Source involves the supply chain management that is used to organizing the procurement
of raw materials and components.
 Make the proper approach for the development of strategy
 Deliver the proper products as per the requirements of the customer
 Return is related to managing all the returns of defective products properly.
Assessment and Refinement
Walmart needs to ensure that the selected approach stays on refinement. This analysis can be
done by continuously analyzing the overall process that describes the several advantages of the
approach. The approach of supply chain management stays on refinement or track after applying
once in the business activities and functions. The ensuring of refinement helps the organization
in managing the approach properly so that better benefits can be achieved.
Example: The Company Wal-Mart attain several benefits by using the elements of the
RADAR as it helps the customers of the company to detect the location and distance from their
home. This element also helps the company in evaluating superior penetration capability.

Marketing 11
Walmart's inventory innovation is too important for the management of the supply chain
strategy. Walmart has long-practiced strategic sourcing to find the products among the suppliers.
The company establishes strategic partnerships with the vendors and they help in achieving high-
potential for the lowest possible prices (Nguyen, 2017). Walmart adopted the cross-docking
process that affects the overall supply strategy of the supply chain. Suppliers deliver the products
to the distribution centers of Walmart.
Cross-docking keeps inventory costs lower and eliminates the inefficiencies occurred in
the overall process. Technology plays a key role in the supply chain of Walmart. The overall
process of the supply chain improves the overall process and it maintains the overall business
excellence. Walmart implemented the supply chain strategy by managing the overall network of
the supply chain (Kalkanci, et al., 2016). Walmart provides low consumer prices then it achieves
success as a retailer.
The main four concepts of the supply chain include:
 The strategy of expanding around distribution centers
 Using electronic data along with the suppliers
 The big-box store format
 Everyday low prices
Business excellence is used to manage the overall aspects of the supply chain. Walmart is
known for its innovative business practices and it is the first retailing company to maintain the
distribution system. The retail industry defines as a sector of the economy that includes the
overall process of supply chain management (Fawcett, et al., 2012). The supply chain
management practices involved several aspects as they improve the differences in the overall
activities. The supply chain also involved ERP that includes enterprise source planning. This
integrates the overall process of the system (Barney, 2012).
Recommendation for improvement in Supply chain
It is recommended that the supply chain of the Wal-Mart company can be improved by
increasing the vision of the supply chain visibility. The parts of the supply chain should be
managed so that the quality of the products does not get hampered and quality services can be
offered to the customers. The training programs should be assessed by the Wal-Mart company so

Marketing 12
that effective services are provided to the customers. The company should also engage the IT
departments in the supply chain so that a proper record can be maintained of the products.
Business excellence is one of the important aspects that manage the overall process as it affects
the overall process of the supply chain strategy. Wal-Mart adopted the supply chain and
increases its revenues in the retail sector by applying the model of the Business excellence

Marketing 13
References
Ali, O. M. S. H. (2012). Improved supply chain performance through RFID technology:
comparative case analysis of Metro Group and Wal-Mart.
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive
advantage: The relevance of resource‐based theory. Journal of supply chain
management, 48(2), 3-6.
Calvo-Mora, A., Navarro-García, A., & Periañez-Cristobal, R. (2015). Project to improve
knowledge management and key business results through the EFQM excellence
model. International Journal of Project Management, 33(8), 1638-1651.
Calvo-Mora, A., Picón-Berjoyo, A., Ruiz-Moreno, C., & Cauzo-Bottala, L. (2015). Contextual
and mediation analysis between TQM critical factors and organisational results in the
EFQM Excellence Model framework. International Journal of Production
Research, 53(7), 2186-2201.
Doherty, B., Thompson, J., Meehan, J., Meehan, K., & Richards, A. (2006). Corporate social
responsibility: the 3C‐SR model. International journal of social economics.
Emmett, S., & Crocker, B. (2016). The relationship-driven supply chain: creating a culture of
collaboration throughout the chain. CRC Press.
Escrig, A. B., & de Menezes, L. M. (2015). What characterizes leading companies within
business excellence models? An analysis of “EFQM Recognized for Excellence”
recipients in Spain. International Journal of Production Economics, 169, 362-375.
Ezzabadi, J. H., Saryazdi, M. D., & Mostafaeipour, A. (2015). Implementing Fuzzy Logic and
AHP into the EFQM model for performance improvement: A case study. Applied Soft
Computing, 36, 165-176.
Fawcett, S. E., Jones, S. L., & Fawcett, A. M. (2012). Supply chain trust: The catalyst for
collaborative innovation. Business Horizons, 55(2), 163-178.
Fonseca, L. M. (2015). Relationship between ISO 9001 certification maturity and EFQM
business excellence model results. Quality Innovation Prosperity, 19(1), 85-102.

Marketing 14
Gómez, J. G., Costa, M. M., & Lorente, A. R. M. (2015). An in-depth review of the internal
relationships of the EFQM model. The TQM Journal.
Heller, F. (2017). Technological innovation applied to Walmart and Tesco's supply
chain (Doctoral dissertation).
Kalkanci, B., Ang, E., & Plambeck, E. L. (2016). Strategic disclosure of social and
environmental impacts in a supply chain. In Environmentally responsible supply
chains (pp. 223-239). Springer, Cham.
Li, B., Zhu, M., Jiang, Y., & Li, Z. (2016). Pricing policies of a competitive dual-channel green
supply chain. Journal of Cleaner Production, 112, 2029-2042.
Michelson, H., Boucher, S., Cheng, X., Huang, J., & Jia, X. (2018). Connecting supermarkets
and farms: the role of intermediaries in Walmart China's fresh produce supply
chains. Renewable Agriculture and Food Systems, 33(1), 47-59.
Nguyen, T. T. H. (2017). Wal-Mart’s successfully integrated supply chain and the necessity of
establishing the Triple-A supply chain in the 21st century. Journal of Economics &
Management, 29, 102-117.
Shahin, A., Jamkhaneh, H. B., & Cheryani, S. Z. H. (2014). EFQMQual: evaluating the
implementation of the European quality award based on the concepts of model of service
quality gaps and ServQual approach. Measuring Business Excellence.
Suárez, E., Calvo-Mora, A., Roldán, J. L., & Periáñez-Cristóbal, R. (2017). Quantitative research
on the EFQM excellence model: A systematic literature review (1991–2015). European
Research on Management and Business Economics, 23(3), 147-156.
Tan, B., Yan, J., Chen, S., & Liu, X. (2018, December). The impact of blockchain on food
supply chain: the case of Walmart. In International Conference on Smart Blockchain (pp.
167-177). Springer, Cham.
Yousefinezhadi, T., Mohamadi, E., Palangi, H. S., & Sari, A. A. (2015). The effect of ISO 9001
and the EFQM model on improving hospital performance: a systematic review. Iranian
Red Crescent Medical Journal, 17(12).