Logistic

I discuss in more details about the pricing strategy of Wal-Mart and the way Wal-Mart can offer such low prices to its customers

Wal-Mart , JIT , and Challenges of Suppliers

Wal-Mart Vulnerability : Logistic Objective

Wal-Mart is widely known to be a retailer with the largest logistics places . In my opinion , this situation is vulnerable since Wal-Mart should set up several warehouses to place a huge number of logistics

In addition , Wal-Mart has a hub-and-spoke ' network of 103 massive distribution center (DC , which is intentionally located across the country . The key characteristic

of Wal-Mart 's stores is that there is no store location is more than a day 's drive away from a distribution center (DC

Just In Time

The raising problem on logistic management has driven the needs to set up suitable supply chain management . There are three benefits of conducting SCM as following

Improved time-to-market or product delivery

Costs efficiency

Enabling all involved individuals in the supply chain to manage current resources and project the future needs

In Japanese terms , the above objectives refer to Just-In-Time . The key point of conducting JIT is to balance supply and demand . According to O 'Brien and Springman (2004 , two conditions underlie the supply and demand balance

Depending only to supply side may incur unnecessary capital expenditures , inventory investments or suboptimal solutions

To obtain balanced supply and demand , supply chain managers must figure out customers ' demands and make the demands ' patterns However , the implementation of Just-In-Time also has pros and cons . The pros occur as Just-In -time implementation would improve time-to-market or product delivery . This reduction of design cycle time by 50 will generate revenue more than double . In addition , Just-In-Time also supports costs efficiency by eliminating vast number of inventory will provide better cash flow for the company

On the contrary , the Just-In-Time...