1
Walmart’s Logistic Management System
<Author name>
<Institutional affiliation>
<Course number and name>
<Instructor name>
<Assignment due date>
, 2
Walmart’s Logistic Management System
Walmart, a company based in the US, was ranked as the 2nd best retail company in the
world in 2019 (Corporate Walmart, 2020). The company deals with the sale and distribution of
grocery and household products worldwide (Corporate Walmart, 2020). Its most interesting
operation is its supply chain, more so, the company’s logistics system which the company
considers to be the focal point of its entire operations. This system is arguably the key reason
why the company can offer very low prices for similar commodities in the market in comparison
to the competition. Below is an extensive breakdown of the nature of Walmart’s logistic system.
Walmart has over 150 automated distribution hubs globally (Corporate Walmart, 2020).
These hubs have been built and designed to support around 90 to 100 of the company’s stores
(Corporate Walmart, 2020). The company has invested heavily in logistics which has enabled it
to adopt a very expensive yet unique distribution network called hub-and-spoke. This model
allows Walmart to haul products by air from manufacturers to its distribution centers across the
globe using its aircraft which are 22 in total (Corporate Walmart, 2020). Walmart has always
counted on carefully and strategically sourcing, engaging, and guaranteeing long term business
relations with manufacturers of products that have high demand in the market, whether globally
or within different regions. By doing so, the company can do away with the middle man that
would ordinarily undertake the role of hauling these products from the manufacturer to the
company. This means that Walmart is ultimately able to reduce significant costs by handling this
phase of distribution by itself. Also, the company can have better control of its supply chain
given the unpredictability that comes with engaging many stakeholders of the supply chain,
especially external ones like intermediaries.
Walmart’s Logistic Management System
<Author name>
<Institutional affiliation>
<Course number and name>
<Instructor name>
<Assignment due date>
, 2
Walmart’s Logistic Management System
Walmart, a company based in the US, was ranked as the 2nd best retail company in the
world in 2019 (Corporate Walmart, 2020). The company deals with the sale and distribution of
grocery and household products worldwide (Corporate Walmart, 2020). Its most interesting
operation is its supply chain, more so, the company’s logistics system which the company
considers to be the focal point of its entire operations. This system is arguably the key reason
why the company can offer very low prices for similar commodities in the market in comparison
to the competition. Below is an extensive breakdown of the nature of Walmart’s logistic system.
Walmart has over 150 automated distribution hubs globally (Corporate Walmart, 2020).
These hubs have been built and designed to support around 90 to 100 of the company’s stores
(Corporate Walmart, 2020). The company has invested heavily in logistics which has enabled it
to adopt a very expensive yet unique distribution network called hub-and-spoke. This model
allows Walmart to haul products by air from manufacturers to its distribution centers across the
globe using its aircraft which are 22 in total (Corporate Walmart, 2020). Walmart has always
counted on carefully and strategically sourcing, engaging, and guaranteeing long term business
relations with manufacturers of products that have high demand in the market, whether globally
or within different regions. By doing so, the company can do away with the middle man that
would ordinarily undertake the role of hauling these products from the manufacturer to the
company. This means that Walmart is ultimately able to reduce significant costs by handling this
phase of distribution by itself. Also, the company can have better control of its supply chain
given the unpredictability that comes with engaging many stakeholders of the supply chain,
especially external ones like intermediaries.
