Network Distribution Assignment.
Question 1
In addition to the case study that sets the stage for this chapter, I don’t think a company exists that has leveraged their supply chain in general and distribution in particular as Wal-Mart. I also know that their story has been chronicled over the years in more magazines, journals and newspapers than you can imagine. I want you to write a short report (2-3 pages – whatever it takes to do a good job) that details the different distribution strategies that Wal-Mart employs and the impact that these have had on their success. Please use the on-line library resource and fine a couple of relevant articles about Wal-Mart and distribution to supplement the information in your text. Include citations for these papers in your report.
Wal-Mart has one of the largest private distribution operations in the world with more than 40 Regional Distribution Centers with each one over 1 million square feet in size. They operate 24 hours a day 7 days a week keeping their own fleet of trucks and trailers moving. Each Distribution Centre supports between 75 and 100 stores within a 250-mile radius
A key to Wal-Mart’s success has been its reliable and effective supply chain. From purchasing to transporting to selling, Wal-Mart has been able to adopt an efficient distribution and logistics management system where they have been able to ensure a constant flow of goods by using highly advantageous innovative strategies. For instance:
• A world class Cross Docking strategy
• State-of-the-art technology systems
• In-house transport fleet.
Wal-Mart developed the hub-and-spoke distribution strategy which has been one of its key operational competitive advantages. While Wal-Mart needs only 10% of its stores square footage for inventory, competitors on average require 25%. This is because each of its stores is within a day's drive from one of their distribution centers thus allowing Wal-Mart's to bring a product from the dock...