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Walmart’s Supply Chain: A Detailed Look at How They Manage It

Sam Walton said, “People think we got big by putting big stores in small towns. Really we got big by replacing inventory with information.” It is information, and especially information sharing, that lets Walmart constantly increase efficiency at every step, from replenishment planning and production to shipping, distribution, delivery, and stocking.

Studying the nuts and bolts of how Walmart uses information—data—to make that happen can help shippers and other retailers optimize their supply chains with digital data sharing.

Walmart is big, racking up $555 billion in sales in fiscal 2021, so it can seem like a behemoth with no lessons for the rest of us. But we can learn valuable lessons from Walmart’s focus on efficiency and automation, its nuanced approach to supply chain sustainability and social responsibility, and how digital data sharing underlies it all.

Size Matters

Walmart has 5,300-plus stores in the United States employing nearly 1.6 million people, and 5,100-odd stores in 23 other countries employing another 550,000.

These, together with Walmart’s family of e-commerce websites, are served by 210 distribution centers. Every one of them unloads and ships at least 200 trailers a day. They encompass at least 1 million square feet each—and 42 of them are U.S. regional distribution centers that dwarf the others.

Their shipping fleet musters 9,000 tractors and 80,000 trailers and drives more than 1 billion miles per year. Walmart even dealt with the Covid supply chain crunch of 2021 by chartering its own ships to unload at less-busy ports . Who can say the same?

Data Matters More

But Walmart succeeds and grows because of a relentless focus on efficiency and transparency in its supply chain, even in packing pallets and stocking shelves, as we shall see.

They continuously find ways to optimize their supply chain to control or reduce costs, and they never let up. Walmart believes that it’s that focus that underlies all their success and guarantees that, even as inflation and wages and other costs of doing business rise, Walmart continues to be the low-price leader.

Walmart’s policy is to offer Everyday Low Prices—lower than everyone else’s—year-round, instead of competing on price only during seasonal sales. Walmart can do that and still hit its margin targets because it is so successful in building visibility and transparency into every scrap of data in their supply chain.

Visibility, Transparency and Collaboration

At Walmart, demand forecasting and inventory-level prediction are obsessions. Walmart was the first company in the world to use barcodes on 100% of its products, way back in 1983.

In 2015 alone it spent $10.5 billion on IT, a lot even for a company that booked $486 billion of revenue that year. And nothing has changed. In 2021, Walmart CFO Brett M. Biggs said, “From a position of great strength, we’re now going to accelerate investments in supply chain, technology, automation, and our associates.…we remain laser-focused on operating efficiency .”

Though not yet a 100% mandate, radio frequency identification (RFID) tags are encouraged for suppliers. These tags can be scanned from a distance with radio waves, so that pallets and boxes don’t have to be approached with a handheld laser scanner for their data to be captured and shared. In fact, pallets and boxes don’t even need to stop moving to be scanned; RFID tags can be read as they’re moving through a gate on a loading dock.

Making data sharing that easy provides a great benefit: Walmart products with RFID are replenished three times as fast as those that only carry barcodes, and out-of-stocks are down 16% since the company started using them.

But make no mistake: It isn’t gadgets, but rather Walmart’s transparency and visibility at every step of its supply chain that is the real secret of its success. The first step is perhaps the most radical: All of Walmart’s suppliers are responsible for their own replenishment planning, and the company gives each of them the tools and data to successfully manage the inventory levels of their own products in Walmart’s stores and warehouses.

True Collaboration With Vendors and Suppliers

Walmart began dealing directly with the firms that produce its assortment in the 1980s, and found it profitable to cut out distributors in the middle. Over time, advances in IT made it possible to share so much timely data with vendors that the company could relieve itself of the cost of managing its own inventory.

The result is a digital vendor-managed inventory system called Retail Link® that gives suppliers access to real-time store-by-store point of sale data, whether they are making furniture in China or frozen food in California.

Analysts working for suppliers don’t just react to falling inventory levels, they forecast demand patterns—which are ultra-stable due to Walmart’s Everyday Low Prices policy of avoiding seasonal sales—and collaborate with other suppliers and with Walmart to decide when to ship products to Walmart distribution centers.

And benefits beyond avoiding out-of-stocks are made possible by the system’s openness and collaboration with suppliers. Walmart doesn’t drip-feed information to its suppliers, it opens its books to them.

A tool within Retail Link called Market Basket allows suppliers visibility into what products are routinely combined with their own in the same purchase. This gives vendors the opportunity to produce their own versions of those frequent companion products, or to ask Walmart to place their products where they’ll be seen by buyers of those companions.

No Wasted Time—or Space

Once a product is shipped, the vendor’s responsibility ends and Walmart takes charge. But the same data sharing and visibility, aided by satellite tracking, allows Walmart to precisely schedule just-in-time handling of goods as they are received.

Walmart coordinates each unloading of a supplier’s truck with the loading of an outbound Walmart truck at the same distribution center within about a day. This practice, known as cross-docking, minimizes both inventory carrying costs and the duration of the Walmart assortment’s journey from factory to customer.

Goods are only warehoused at the big box stores, which further minimizes the duration of a product’s journey to the customer. The stores are sized for the purpose both in area and in height; the towering upper shelves hold as much as or more inventory than the shelves that customers shop from.

In-store warehousing also allows for fewer and larger deliveries from distribution centers to stores, an efficiency that saves more than money. Filling trucks and minimizing miles traveled also reduces Walmart’s carbon footprint. This contributes to the company’s impressive gains in sustainability, as we’ll see below.

Data Enables Precision

Walmart’s mastery of real-time information allows it to mingle the very different assortments of products that are sold through its various channels. If you walk inside a Walmart store, you can lay your hands on fewer than 200,000 items immediately. But Walmart’s online storefronts offer millions of items, and Walmart wants to get those to you as quickly as possible.

They’re able to do so because 90% of Americans live within 10 miles of their stores, which are also their warehouses.

Omnichannel, Brought to You by Omniscience

Walmart combines e-commerce with its bricks and mortar stores in omnichannel retail. Keeping all the products straight, and keeping them moving on time, requires even greater precision and flexibility .

Accurate forecasting of what items in its online assortment will be wanted—and when they will be wanted—is needed for the right online-only products to be warehoused closest to customers.

Online sales were less than 10% of Walmart’s total sales in 2020 but they are rising, and so is the need for dedicated warehouse space for those online-only assortments.

To meet this growing need, Walmart is rolling out dozens of in-store or store-adjacent warehouses known as market fulfillment centers (MFCs), after building their first in New Hampshire in 2019.

Each MFC can dispatch deliveries either directly to customers or to nearby Walmart stores to fulfill store-pickup orders from the online assortment. And if your store-pickup order combines online-only items with products stocked on the store’s shelves, it will all be waiting for you in one neat pile when you get there.

That takes a lot of timely information sharing to accomplish, and Walmart is committed: it spent $11 billion in 2019–2021 on technology, e-commerce and its supply chain.

Data Increasingly Enables Automation

What’s more, Walmart spent $14 billion in 2021 on supply chain automation . This begins with automated warehouse management and control systems, which are software, and automated picking, sorting and putting systems, which are hardware.

The software handles inventory control of the bewilderingly large assortment of Walmart’s various online and in-store channels. It even forecasts labor needs to ensure that staffing levels exactly match the need for each shift, bringing in more hands when large deliveries and shipments are expected and keeping a smaller crew for quieter hours.

Because all the relevant data in Walmart warehouses is transparent and interoperable, that labor can be provided by machines as well as people. High-speed robots are already loading and moving pallets, and automated sortation equipment is sorting products along conveyers and chutes. These technologies, together with data sharing, underpin automated consolidation centers , the first of which opened in 2019 in Colton, California, with more to come.

At only 340,000 square feet, it receives, sorts and ships freight for all 42 of Walmart’s U.S. regional distribution centers (RDCs). It uses automated technology that triples throughput.

The status quo is for suppliers to manage 42 separate orders—one for each RDC—usually shipping them as soon as they are ready in trucks that are not full. Walmart consolidation centers always took less-than-truckload shipments and consolidated them in full truckloads, but everything was done by hand and, crucially, shipments were not received and counted until they arrived at the RDCs.

Demand Forecasting and Predictive Distribution

With the new system, suppliers fill only one order, instead of 42. This allows them to save money on order management and to dispatch fewer less-than-truckload shipments. More important to Walmart’s bottom line, all the container loads are scanned and counted as soon as they arrive at consolidation centers, upstream from the RDCs. The scanning and counting are done automatically on arrival.

This allows the entire system to adjust to the unexpected that much sooner. With complete visibility, the system can even respond to sudden shifts in regional demand, for example, due to a heat wave driving air-conditioner sales in certain states, and rebalance shipments to the various RDCs. As Geno Bell, Walmart’s senior director of its consolidation centers, put it, “With this new technology, we can be surgical and responsive in getting merchandise into stores.”

After the products have been received, counted and assigned to destinations, the automated warehouse management system is used to sort and separate the arrivals and load the products into new truckloads according to how they are stocked downstream, speeding and simplifying unloading at the destination.

Things get even more high-tech at the new automated RDCs, where high-speed palletizing robots unload and sort product. These tireless workers can use every inch of available warehouse space because they never lose track of where a product is stored, no matter how deep it is buried or how high it is stacked.

When it’s time to load it out, the robots retrieve the product and make up individual pallets designed for easy unloading at the other end. The new pallets are packed by how products are stocked in the destination stores, down to specific aisles, in a tour de force of precision and integration. Work on the first of these automated marvels began in 2017 in Brooksville, Florida. Now Walmart is rolling out the automated system to 25 of its 42 RDCs.

How Walmart Achieves Its Sustainable Supply Chain

Walmart first focused on the sustainability and environmental, social and governance (ESG) aspects of its direct operations, making its first environmental sustainability pledge in 2005. Among its early targets were increasing the efficiency of its trucking fleet. In the years since, Walmart has committed to achieving zero waste in its U.S. and Canada operations by 2025, and to powering its global operations by 100% renewable energy by 2035.

Walmart was the single largest procurer of solar and wind power in the United States in 2019, and currently gets 36% of the electricity that it uses around the world from renewable sources.

Once its own sustainability journey was underway, Walmart expanded its efforts to the sustainability of its assortment and of its supply chains . It paid for expert advisors to work with its suppliers to help them reduce their greenhouse gas emissions, drawing on Walmart’s now-considerable experience in the field. And through Walmart’s Project Gigaton, it is offering a power-purchasing facility to its suppliers whereby they can pool their electricity purchases to bring massive new renewable energy projects onto the electric grid in very sunny and windy areas that will offset the power they use locally (all electrons being interchangeable).

Walmart’s efforts to increase its supply chain’s sustainability are extensive, but they focus on a few critical ESG issues including climate, waste and working conditions. Walmart clearly lays out its expectations of suppliers in regards to worker well-being in a Standards for Suppliers publication, and lets them know that they are expected to hold their own suppliers to the same standards. Walmart then actively monitors the areas that pose the highest risks, especially to worker dignity.

Accountability Begins With Reporting

When it comes to environmental sustainability, Walmart uses a mix of mandatory and voluntary mechanisms. Suppliers of some commodities, including coffee, cotton, palm oil, pulp and paper, and tuna, are required by Walmart to meet specific certification standards and to validate that they have done so.

These products can then carry a certification logo on their packaging, which Walmart sometimes draws attention to. For example, a sign on a shelf might alert customers to sustainable seafood that carries the Marine Stewardship Council logo.

Other ESG efforts among Walmart’s vendors are voluntary . For example, Project Gigaton , which aims to avoid 1 billion tons of greenhouse gases from Walmart’s supply chain by 2030, is a program that Walmart encourages its suppliers to participate in, but participation is not mandatory.

Upwards of 3,100 suppliers (out of more than 100,000 total) are taking part in this effort. As always, Walmart is obsessed with information sharing in the ESG arena, and suppliers who report to Walmart’s sustainability surveys account for 70% of Walmart’s net sales in the United States.

It All Begins With Digitization

We all aspire to succeed like Walmart, but no fleets of automated warehouse robots are coming to sort and pack aisle-ready pallets for the rest of us—and that’s okay. Every supply chain can realize serious efficiency gains through better data sharing. The road to Walmart-quality data, and real-time data sharing between supply chain partners, starts with making the entire shipping process digital.

A good end-to-end digital solution can capture all the information generated in a shipment’s lifecycle and make it immediately available to everyone concerned. Vector Software’s contactless solution is a good example.

A supplier’s bills of lading, pick sheets and anything else are sent by email or uploaded to Vector’s system and automatically ingested. When a carrier driver arrives for pick-up, a smartphone scan of a QR code checks the driver in, enters the driver’s info, and assigns a dock door.

From there, the system routes the shipment’s documents to the driver, shipping clerk, and security guard, who might use a smartphone to verify the container’s seal or temperature and add that information to the system. En route, the shipper and the carrier get real-time updates, including details of any overage, shortage, or damage.

Digitization speeds and eases every trip. But the real efficiencies come in because digitization is the crucial first step in leveling up a company’s data quality. Every shipment’s data is made completely visible. Any patterns that arise in the inevitable glitches and hitches are laid out where you can see them as they emerge and solve them promptly. And that gets you closer to using information like Sam Walton for a world-class supply chain.

Back to the Future

The future of Walmart’s Supply chain is sure to include more dazzling innovations, but the fundamentals of efficiency, visibility, and sustainability will remain. For instance, the company’s autonomous robots whizzing around inside its distribution centers may soon be picking and packing containers hauled by autonomous trucks.

Walmart is testing such vehicles to haul freight around their own yards and on public road networks. They are also experimenting with management systems to control and coordinate these autonomous vehicles.

Who knows what the future of Walmart’s supply chain will look like? But even if they someday deliver goods in flying cars, one thing is certain: The secret of Walmart’s success will always be information.

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Walmart: Supply Chain Management

By: P. Fraser Johnson, Ken Mark

This case focuses on the supply chain strategy of Walmart. Set in 2019, it provides a detailed description of the company's supply chain network and capabilities. Data in the case allows students to…

• Length: 16 page(s)
• Publication Date: Jul 8, 2019
• Discipline: Operations Management
• Product #: W19317-PDF-ENG

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This case focuses on the supply chain strategy of Walmart. Set in 2019, it provides a detailed description of the company's supply chain network and capabilities. Data in the case allows students to compare Walmart's source of competitiveness with those of other retailers-both online including Amazon.com and traditional brick-and-mortar retailers, such as Target-to develop insights into the management of a large, complex, global supply chain network. As competition between Walmart and its online and offline competitors heated up, a key challenge for the company's president and chief executive officer was deciding what changes made to Walmart's expanding supply chain would best support its strategic objectives. What supply chain capabilities would Walmart need as its business model continued to evolve?

Learning Objectives

This case can be used in an undergraduate or MBA course in supply chain management, operations management, business strategy, international business, logistics, purchasing, or marketing. It can provide an introduction to supply chain management using a company with which most students are familiar. In doing so, it allows students to learn how Walmart has built up its supply chain capabilities over the past five decades, and how the company leveraged these capabilities to become the world's largest retailer. Combining the Walmart case with the "Amazon.com: Supply Chain Management" case (W18451) in back-to-back classes provides a powerful illustration of the differences between two leading companies and demonstrates the importance of alignment of supply chain competencies with organizational strategy. After completion of this case, students will be able to: Assess Walmart's supply chain and identify its key competitive advantages. Quantify Walmart's ability to generate value from its supply chain. Identify potential opportunities and challenges for Walmart to improve its supply chain. Analyze the effects of the opportunities and challenges facing Walmart on its growth and evolution.

Jul 8, 2019 (Revised: Sep 9, 2019)

Discipline:

Operations Management

Geographies:

United States

Industries:

Retail trade

Ivey Publishing

W19317-PDF-ENG

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Supply Chain

The Secret to Managing the Walmart Supply Chain, One of the Most Effective Supply Chains in the World

Hugo Britt Jul 31, 2020

Welcome to Thomas Insights — every day, we publish the latest news and analysis to keep our readers up to date on what’s happening in industry. Sign up here to get the day’s top stories delivered straight to your inbox.

Holding $32 billion in inventory, Walmart’s supply chain is often touted as one of the most effective in the world and a major contributor to the organization’s operational success. Though Amazon is now the world’s largest retailer , Walmart remains a significant challenger in second place and has been known to outmaneuver Amazon in terms of supply-chain strategy .

Walmart’s mission is to help people save money and live better. In practical terms, this means seeking out more efficient supply chain strategies so savings can be passed along to the customer.

Data Sharing

Walmart shares inventory data with suppliers to maintain better stock levels. Suppliers use this data to form more accurate forecasts and prepare more effectively to meet the retail giant’s needs.

The relationship between Walmart and Proctor and Gamble (P&G) is a great example of how the company has been able to leverage data-sharing to create efficiencies. Walmart has set up an automated re-ordering system that uses satellite communication to tell P&G’s portfolio of companies when an item is needed. The item is then delivered to a distribution center or the store in need.

Bargaining Power

Walmart deals directly with manufacturers without any need for a supply-chain middleman. As the world’s second-largest retailer, the company wields enormous bargaining power and can demand lower wholesale prices from suppliers. These savings are then passed onto customers as part of Walmart’s  Every Day Low Price guarantee. Walmart makes up for its low prices and smaller margins with its sheer volume of sales .

The company has strict policies in place to ensure suppliers deliver in full on time (DIFOT), charging vendors 3% of the cost of goods if deliveries aren’t made as expected.

Warehousing Efficiency

Walmart uses a cross-docking system whereby most freight that enters its distribution centers goes onto conveyor belts that lead directly to trailers being loaded for individual stores. This reduces warehouse space requirements.

Walmart uses a consolidation system that allows large shipments of products in one region to be broken down and dispersed throughout the distribution centers across the company. This ensures fuller truckloads to cut down transportation costs.

Walmart has a long history of leveraging technology to improve operations. Some of the technology implemented in recent years includes:

• RFID tracking.
• Smart tags that allow store employees to better track inventory.
• A centralized database that houses all inventory information.
• Retail Link database to improve communication with suppliers and forecasting .
• My Productivity App for store managers to minimize backroom tasks.
• Innovative patent filings including smart shopping carts, electronic imaging devices that sense when inventory levels are dropping, and in-store customer assistance drones.

What’s Next for Walmart?

E-commerce boom and ship-from-store.

Walmart has increased its ship-from-store capacity to handle the e-commerce boom . Walmart’s online sales have jumped 25% year-on-year due to the COVID-19 pandemic.    

“Ship from store” means using stores themselves as warehouses for online sales. Walmart has a clear advantage over Amazon with nearly 5000 stores in 49 states. Shipping costs are low because 90% of Americans live within 10 miles of a Walmart store. 

Improved Sustainability

Walmart’s Sustainability Hub has not only committed to reducing direct greenhouse emissions but also to slash the emissions created by the company’s supply chain. The Project Gigaton initiative aims to prevent one billion metric tons of greenhouse gases from Walmart’s global supply chain from entering the atmosphere by 2030.

Walmart is currently on track to reach that goal . We can expect to see increased use of renewable energy sources and recycling programs to reduce waste.

Tech Savvy Warehouses

Walmart is already in the process of building futuristic warehouses and consolidation centers that can move more volume with fewer workers. Technology includes automated item identification and self-driving delivery vehicles. It is likely that Walmart will also upgrade existing facilities with these technological improvements.

Image Credit: Jonathan Weiss / Shutterstock

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Home » Management Case Studies » Case Study: Supply Chain Management of Walmart

Case Study: Supply Chain Management of Walmart

The world’s largest retailer Wal-Mart was founded by Sam Walton in the year 1962. He opened his first store in Rogers, Ark. On 31st October 1969, the company was incorporated as Wal-Mart Stores. Key success factor was the guidance of Sam. Presently they are operating in fifteen countries with more than 8,000 stores with 2.1 million employees (2009). Major features of Wal-Mart stores are its store area, cleanliness and its shelves which is filled with varieties of quality items that includes health care products, family apparels, electronic items, automotive products, hardware items, jewelry etc.

Wal-Mart is giving more emphasis for customer needs and tried to reduce cost through the effective usage of supply chain management system . In the year 2009, Fortune Magazine ranked Wal-Mart as first among other retailers in its survey. Sales were about 401 billion U.S dollars in the FY 2009. Sam Walton claims that Wal-Mart’s vision had always been to increase sales through lowering the costs through organized distribution system with the help of the Information Technology. It is said that Wal-Mart’s extreme success could be attributed to its effective supply chain management.

Wal-Mart’s efficiency in supply chain management was due to two key factors namely automated distribution center and the computerized inventory system. This brought in minimizing a lot of time the later not only reduced the checking out time but also recorded the transaction which is much needed to know envisage demand. Demand forecast is a constant issue which could be a threat when not handled properly. This is due to the fact that demand prediction is always inaccurate. Aggregation would be a remedy for this unpredictable demand.

Wal-Mart’s focus has always been to sell goods at a lower price to the customers. They ensured direct purchase form the companies bypassing the intermediaries. This by passing is one of the ways to reduce cost. Wal-Mart preferred small vendors to the big players however the vendor who provides the best price qualifies and gets the deal. This applies to the giants like P& G as well. Their practice these days had been choosing few vendors and they literally negotiate the best price the one that comes up with the best price qualifies. This does not blindly mean that they have been ruthless. Wal-Mart also work with the vendors for improving its supply chain efficiency.

Wal-Mart with its power distribution system made quite innovative changes like reducing paper work, reduced its lead time drastically, used bar codes to bill which recorded inventory levels and the access to the stock levels served as the valuable data for management. The movements of products are systematic and strategically aliened in a way that it reduces the most valuable time and cost and results in efficiency. Wal-Mart had a very effective rather responsive and flexible distribution system to transport goods from docks to stores. It educated the drives with the ethics and code of conduct which pictures their supply chain responsibility. Cross docking is one lethal weapon that was used by Wal-Mart in their SCM.

Cross Docking: Cross Docking is a method of handling goods. This happens when vendor and the company work together. This is the method of supplying the product in the right time and the said quantity. This cut down a lot of time. This also changed Wal-Mart’s way of looking things. This transitioned Wal-Mart from being a centralized management to almost decentralized system took a major turn in focus of pull strategy than a pull strategy.

Cross-docking is one of the techniques used by Wal-Mart. It means there is no unnecessary storage or little storage in between the loading and unloading of goods so that customer can enjoy the quality of the goods by first hand. Wal-Mart have logistics infrastructure which is very fast transportation system wherein the distribution centers are being serviced.   Wal-Mart assured that their drivers are capable of doing their jobs accordingly and do not cause unnecessary delays that can hamper the efficiency of the distribution operations.   To deliver it on time, the coordinators give information to the driver the expected time of arrival or delivery of the goods.

Point Of Sale: Information sharing is one of the most important things when it comes to SCM. P&G with its Pampers requested Wal-Mart to share its point of sale so that it could predict its demand more or less and work on the information to bring in efficiency. When Wal-Mart shared this information P&G could plan in advance and it with its efficient supply chain management could supply pampers to Wal-Mart on time.

Wal-Mart did not want to dedicate lot of space to pamper in its warehouse of shop store either. Instead the supply was taken care by P& G. This led the initiation of working with the vendors and coming out with huge efficiency by maintaining lower inventory and satisfying demand without stock outs. Thus point of sale sharing would be a key element for any company for its further scope of improvement and also when there is further scope of improvement there is a role for Supply chain management.

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People in Supply Chains

Our aspiration, key goals & metrics, relevance to our business & society.

• Walmart's Approach

Key Strategies & Progress

Additional resources.

SASB: FB-FR-430a.3 GRI: 2-6, 3-3, 204-1 UN SDG: 5 S | Published: May 19, 2023

We aim to source responsibly while acting as a catalyst of positive transformation for the well-being of people working in consumer product supply chains, working with others to realize the economic promise of supply chains and helping address specific systemic risks.

Retail supply chains bring food and other essential products to consumers around the world. Growing, making, and transporting products also benefits local economies and provides economic opportunity for people who work in product supply chains, including lifting many out of poverty. In some cases, however, people working in product supply chains may face the risk of exploitation, especially in regions with less robust legal and social infrastructure.

Walmart’s business depends on our ability to source responsibly made products; our core values of respect for the individual and for human rights demand it. Walmart’s supply chain consists of tens of thousands of suppliers globally, many of whom have their own suppliers. Our stakeholders expect us not only to source responsibly but to be a catalyst for positive transformation.

Walmart’s Approach

To promote the well-being of people in the supply chains from which we source, Walmart aims to source our products responsibly, create economic opportunity for people, and collaborate with others to address systemic risks to worker well-being.

• Responsible sourcing:  We hold our suppliers accountable for the responsible operation of their facilities and for safeguarding the well-being of workers in their facilities and supply chains. Walmart expects that the products we purchase and sell or purchase for our own use are made by suppliers who act ethically, pay people fairly, provide working environments that are clean and safe, and respect the dignity of workers. We articulate our expectations in our  Standards for Suppliers , which apply to all suppliers who sell their products to us for resale or for Walmart’s own use. We employ a risk-based approach to monitor for compliance with our Standards, focusing on areas that pose the greatest potential risk to worker dignity. Our merchants and sourcing teams manage risk by engaging their suppliers to make our expectations clear, by providing resources and information to clarify expected practices, and by holding them accountable for compliance where necessary.
• Creating economic opportunity for people in supply chains:  Growing, making, and transporting products benefits local economies and provides economic opportunity for people who work in product supply chains, including lifting many out of poverty. Walmart annually sources billions of dollars of products from diverse suppliers and uses business and philanthropic resources to help smaller producers access markets and grow.
• Collaborating to address systemic risks to worker well-being:  Systemic issues such as forced labor, unsafe working conditions and gender inequity require collective efforts to bring about significant, positive, and lasting transformation for the well-being of workers. Walmart and the Walmart Foundation collaborate with suppliers, non-governmental organizations, experts, and others to address root causes of these issues, foster innovative solutions, and accelerate adoption at scale.

In October 2022, Walmart hosted an investor webinar on our approach to People in Supply Chains, which included discussion of Responsible Sourcing, Creating Economic Opportunity for People in Supply Chains, and Collaborating to Address Systemic Risks to Worker Well-being. Watch the webinar online  here .

Responsible Sourcing  |  Creating Economic Opportunity  |  Collaborating to Address Systemic Risks

Responsible sourcing

Our Responsible Sourcing program sets expectations of product suppliers aligned with our  Human Rights Statement , monitors supplier performance against those expectations, and works through our business to continuously improve our product supply chains.

Program Foundations

Orange facilities.

Less than 2% facilities assessed received a successive orange rating, highlighting functional remediation systems

Yellow or Green

90% of assessed audit reports as a percentage of all assessed audits for the fiscal year were rated yellow or green

Walmart’s expectations of suppliers are set out in our  Standards for Suppliers , which apply to all suppliers that sell their products to us for resale or for Walmart’s own use. Suppliers are expected to cascade the requirements outlined in our Standards for Suppliers throughout their supply chains – including raw material, component or ingredient suppliers, and subcontractors and agents. These foundational expectations address fundamental issues such as worker safety, forced labor, and harassment and discrimination in the workplace.

Walmart may issue and communicate more specific requirements as a condition of sourcing where doing so would help to mitigate acute risks to human rights; for example, we have issued and communicated specific policies relating to supply chain transparency expectations and safety in Bangladesh. We also engaged in targeted communication about these updates with strategic suppliers and suppliers in riskier geographies so they had an opportunity to ask questions and provide us with information on how they plan to comply with these requirements.

Walmart's merchandising and sourcing teams choose which products to buy and which suppliers to work with and are key to achieving Walmart’s responsible sourcing objectives. Their actions are guided by Walmart’s  Human Rights Statement ,  Standards for Suppliers ,  Code of Conduct , Global Responsible Sourcing Compliance Policy, and  Global Forced Labor Prevention Policy , among other resources.

Code of Conduct, Global Responsible Sourcing Compliance Policy and Global Forced Labor Prevention Policy

Walmart’s  Code of Conduct , which applies to all Walmart associates globally, reiterates our respect for human rights, prohibits the use of underage or forced labor anywhere we do business, sets the expectation that all Walmart associates know and uphold our Standards for Suppliers, and obligates associates to comply with all other relevant policies, including our Global Responsible Sourcing Policy and Global Forced Labor Prevention Policy. Walmart’s Global Responsible Sourcing Compliance Policy establishes requirements for our merchandising and sourcing associates to buy and source from responsible supply chains, including by:

• Knowing and understanding our Standards for Suppliers and other relevant policies and program requirements
• Not knowingly buying or sourcing from suppliers that are producing products for Walmart using forced, underage, or involuntary prison labor; suppliers with facilities with known safety issues that may result in significant loss of life; or suppliers or facilities that are not authorized to produce for Walmart because of past compliance violations
• Communicating expectations and holding suppliers accountable to the Walmart Standards for Suppliers and Responsible Sourcing Compliance Program requirements
• Considering how certain buying practices might create pressures on suppliers and facilities that may increase risk
• Escalating concerns through our Ethics channels

Additionally, Walmart’s Global Forced Labor Prevention policy sets requirements for all Walmart associates regarding the prevention of forced labor and conveys the expectation that our suppliers uphold the principles in the policy. The policy makes clear Walmart’s endorsement of forced labor prevention principles, that workers should not have to pay to get a job, that workers should understand the terms and conditions of their employment, and that workers should have freedom of movement. It reiterates the expectation that merchandising and sourcing associates not knowingly buy or source from suppliers producing products using forced labor, including underage labor or involuntary prison labor, in their operations or their supply chain, and communicate expectations and hold suppliers accountable to the Walmart Standards for Suppliers and our Forced Labor Prevention requirements. We also publish dedicated resources, such as the Supplier Requirements for Supply Chain Traceability, which establish expectations that Suppliers document their production and procurement processes, maintain strong management systems for gaining supply chain transparency, and manage compliance in higher-risk upstream supply chains.

To support our merchandising and sourcing teams and to build strong connections with local suppliers, Walmart has associates around the world dedicated to administering our Responsible Sourcing program. As of January 31, 2023, Walmart Compliance associates located in 14 countries support the Responsible Sourcing program. Walmart’s Responsible Sourcing Compliance associates provide ongoing support and guidance to merchandising and sourcing teams so they can align purchasing practices with program expectations. This includes helping these teams understand and mitigate risk and training them on responsible sourcing expectations, processes, trends, and tools; working directly with suppliers to help create an understanding of our expectations; and collaborating with stakeholders on key industry and regional responsible sourcing issues.

Training & Tools

Walmart merchandising and sourcing associates are trained on our Global Responsible Sourcing Compliance Policy, our Standards for Suppliers, and our Responsible Sourcing expectations on an ongoing basis. This training introduces new merchants to the Responsible Sourcing program while updating program understanding with experienced merchants. Responsible Sourcing associates also provide merchants with a profile of the social compliance status of active, disclosed facilities and suppliers relevant to their business in order to enable informed decisions.

In addition to training Walmart associates, we provide tools and resources to suppliers through various channels, including our  corporate website ,  to help them understand our expectations and to help them make improvements in their supply chains. Additionally, when suppliers with facilities within  the scope of our Responsible Sourcing auditing program  disclose those facilities to us, Walmart sends those suppliers email communications reiterating our Standards for Suppliers and providing references to resources to help them understand and meet Responsible Sourcing requirements. Finally, Walmart associates also provide individual guidance, including when suppliers or merchants reach out with questions and when audit results are shared with suppliers.

Monitoring for Compliance

We take a risk-based approach to monitoring suppliers’ facilities for compliance with our Standards for Suppliers. This approach includes audits conducted by third parties and handling of allegations through our case management process that may include investigations of facilities.

Assessing Risk.  Responsible Sourcing conducts a regular risk assessment to better understand social compliance concerns in the supply chain. This assessment analyzes Walmart's internal audit and case management data, along with publicly available data (e.g. U.S. State Department's Trafficking in Persons Report and the World Bank Governance Indicators), to identify the prevalence of issues occurring in countries where Walmart has sourcing activity and/or retail operations. The results allow Walmart to consider opportunities for enhanced awareness or tailored initiatives.

As set forth in our  Audit and Assessment Policy & Guidance  document, whether and when an audit is required for a disclosed facility is dependent on several risk-based factors:

• Region/territory risk.  Regions and territories are assigned risk levels based on World Bank Governance Indicators. Facilities in lower-risk regions and territories are typically subject to audits on a less frequent basis while facilities in regions and territories that fall into medium and higher levels of risk are typically subject to regular audits. Suppliers with new facilities located in higher risk regions/territories are also required to complete a third-party audit for such facilities and receive a Green or Yellow assessment before the facility can produce for Walmart.  
• Channel.  New facilities that produce products where Walmart will be the importer of record must be audited and receive an acceptable result prior to beginning production for Walmart. See  Audit and Assessment Policy & Guidance .
• Prior audit results.  Upon audit, facilities are given a rating from Red to Green (see Facility & Supplier Compliance Assessments below). Audit results determine re-audit requirements; for instance, an Orange rating may require reauditing more frequently than a Yellow rating. See  Audit and Assessment Policy & Guidance .

Walmart may at times undertake additional measures to assess or evaluate risk. For instance, Walmart is participating in the Owned Operations working group of the Consumer Goods Forum, which includes Human Rights Due Diligence activities.

Disclosing facilities.  We require suppliers to disclose to Walmart any facilities they are using to produce private and exclusive brand merchandise, goods imported by Walmart, and items for our own use that carry the Walmart brand (such as shopping bags). In some markets, and based on risk, we require other facilities to be disclosed.

Assigning and conducting audits.  Facilities are selected for audit based on the risk factors discussed above, including regional trends, import channels, and prior audit results. As of January 2023, suppliers may choose from among 11 third-party auditing programs to satisfy monitoring requirements for Walmart. Walmart selected these programs following a benchmarking review of their governance, scope, and robustness.

Facility & Supplier Compliance Assessments

We assign risk ratings to all audited facilities and higher-risk suppliers. These risk ratings may result from the auditing or case management processes described in this brief. Audited facilities are assigned color ratings based on their compliance and risk levels.

• Green: Highest level of compliance
• Yellow: General compliance with minimal issues to be addressed
• Orange: More significant issues that should be remediated
• Red: Serious issues that ordinarily lead to the facility no longer being authorized to produce products for Walmart.

Three consecutive Orange ratings may result in a Red rating, regardless of whether the facility remains in good standing with the audit program chosen. Suppliers may also be given consequences for substantiated non-compliances. Suppliers may be assigned a “strike” where they are directly responsible for non-compliant activities (i.e., action on their part as opposed to on the part of one of their facilities) and for certain serious violations by their facilities. Ordinarily three “strikes” within a two-year period will lead to the termination of a supplier relationship with Walmart. Walmart may also choose to sever its relationship with a supplier based on a single instance or event, as circumstances warrant.

Suppliers are responsible for providing an audit report for facilities that fall within the audit scope and for correcting non-compliances. Walmart associates support suppliers through the audit process, communicating with suppliers about our requirements and checking the validity of submitted audit reports. Associates also review each audit submitted and assign a rating to describe its compliance and risk level. Central audit administration teams partner with the compliance teams in each country in which we operate to support merchants in understanding their suppliers’ performance and any issues that warrant supplier engagement, as well as communicating with suppliers about audit results and expected next steps. Audit frequency is linked with regional and other forms of risk, as described above.

Strengthening Capacity of Global Audit Systems

Walmart seeks to strengthen the capacity of the global social compliance audit system. We supported the establishment of the  Association of Professional Social Compliance Auditors  (APSCA) to enhance the professionalism, consistency, and credibility of the individuals and organizations performing social compliance audits. Walmart continues to support APSCA by requiring that audits be conducted by an APSCA-certified auditor. APSCA helps ensure a high standard of quality for the industry: for instance, the organization  revoked membership   of an enlisted auditing firm for noncompliance. As of April 2023, more than 2,000 certified social compliance auditors were enrolled with APSCA. Walmart also works to improve individual audit programs. To become approved by Responsible Sourcing, an audit program undergoes an extensive review that covers the program’s audit content, methodology, program governance and quality assurance processes, among other components. After the review, we provide feedback to the programs on elements for improvement. We may require elements to be addressed before the program can become an approved option for suppliers. We continually engage with the programs to help mature them as necessary.

Assessed Audits by Color Rating

~14,000 third-party audit reports assessed.

As facilities in regions/territories with higher levels of risk are subject to more frequent audits than facilities in lower-risk regions/territories, this data skews towards those facilities in higher-risk regions/territories.

Worker Voice and Responding to Allegations of Non-Compliance

Outside audit process.

Nearly 50% of cases arise from sources other than the auditing processes, indicating functional worker voice systems

Walmart has several mechanisms for workers (and anyone with relevant information) to raise concerns directly to Walmart. For example, we provide a 24/7 global helpline that is available in 29 languages. This is in addition to the globally accessible email ( [email protected] ) and website ( walmartethics.com ). We provide  posters  to suppliers to place in their facilities in the local language detailing how workers can use these mechanisms.

If we receive information alleging serious violations of our Standards by a supplier or its facilities, we open a case. Our case management and escalation criteria are informed by the International Labour Organization Fundamental Principles and Rights at Work. In FY2023, we opened over 800 cases related to more serious allegations of non-compliances with our Standards for Suppliers. While cases are opened based on higher-risk audit findings, nearly 50% of cases arise from sources other than the audit process, indicating functioning worker voice systems.

Managing Non-Compliance & Risk

Most audited supplier facilities are found to be compliant with our foundational expectations (receiving a Green rating), or generally compliant (receiving a Yellow rating). By  policy , suppliers are required to remediate any identified non-compliances with our Standards for Suppliers, even if the final assessment is Green or Yellow. Our re-auditing requirements allow us to monitor whether identified issues remain or have been corrected.

Audits and cases do surface more serious issues. For example, approximately 8.7% of audits in FY2023 resulted in a facility receiving an Orange rating. Where that occurs, compliance teams work with merchants and sourcing teams to engage the supplier to communicate the results and expectations for remediation, giving them limited additional chances to bring the facility up to a Green or Yellow rating. Remediation typically occurs: in FY2023, less than 2% of facilities assessed received a successive Orange rating.

Where information received through an audit or allegation indicates a particularly serious issue may be present and/or we do not have sufficient facts to make a determination as to how to handle the matter, we deploy a team of Walmart investigators to gather facts through on-site visits to facilities or through other means. Serious allegations that may warrant in-depth scrutiny could include indicators of forced labor, such as restriction of movement and payment of recruitment fees.

Where serious issues are not remediated over time or extremely serious issues are identified through audits or cases, it can result in consequences up to and including termination of a supplier’s relationship with Walmart and/or a supplier’s ability to use a particular facility for Walmart production. For example, 33 facilities received a Red rating in FY2023 via audits and an additional 58 received a Red rating via the case management process. Between 2018-2022, Walmart has stopped doing business with 15 suppliers in response to serious violations of our Standards.

Creating Economic Opportunity for People in Supply Chains

Walmart sources billions of dollars from diverse suppliers and uses business and philanthropic resources to help smaller producers access markets and grow.

Made in USA

Walmart has a long history of supporting American sourcing. More than two-thirds of Walmart U.S.’s total product spend in FY2023 was on items our suppliers reported were made, grown, or assembled in the United States.

Through our America at Work initiative, we continue to invest in products that support the creation of American jobs. In FY2023, we satisfied our commitment to invest an incremental $250 billion over our FY2013 purchases on products made, grown, or assembled in the United States before 2023. Additionally, in March 2021 Walmart committed to invest an incremental $350 billion over our FY2021 purchases on products made, grown or assembled in the United States over 10 years. As of the end of FY2023, we have increased cumulative receipts by $47 billion towards that goal.

Read More:  Supplier Opportunity .

Walmart uses its sourcing strategies to foster equity and inclusion of underrepresented and disadvantaged groups while enhancing our product offering. Walmart’s supplier inclusion program provides companies owned and operated by racial and ethnic minorities, women, veterans, members of the LGBTQ+ community, and people with disabilities opportunities to grow their business by supplying products or services to Walmart. A diverse supply chain helps us deliver the products and services our customers want and need at affordable prices.

Our U.S. businesses sourced more than $13 billion in goods and services from approximately 2,400 diverse suppliers in FY2023. Our Supplier Inclusion Team is dedicated to supplier inclusion and works to identify and onboard interested suppliers and regularly attends business conferences, product and procurement fairs, expos and similar events to help identify potential new diverse suppliers. In addition, our  Supplier Inclusion Portal  provides current and potential suppliers with information on our supplier inclusion program and requirements.

Supporting India Manufacturing & Entrepreneurs

Walmart has sourced goods from India for more than 20 years, supporting local suppliers to build their capabilities and develop new product lines to meet international standards. Example support includes:

• In December 2020, Walmart  announced  it would seek to triple its exports of goods from India to $10 billion per year by the end of 2027.  As of the end of FY2023, Walmart has reached approximately $3.4 billion in exports from India.
• Walmart and Flipkart focus on building supplier capacity, including through Flipkart’s  Samarth initiative ,  which helps MSMEs register for and succeed in online sales, and which recently reached the milestone of positively impacting 1.5 million livelihoods across India, and through Walmart’s  Vriddhi Supplier Development Program , which aims to train and prepare 50,000 of India’s MSMEs to "Make in India".

Market Access for Small Producers

Walmart's Mexico, Central America, South Africa, and India markets have robust sourcing and supplier development programs focused on small and medium enterprises (SMEs), including Adopta Una PyMe ("Adopt an SME"), Una Mana Para Crecer ("A Helping Hand to Grow"), Tierra Fértil ("Fertile Soil"), and Pequeño Productor ("Small Farmer").

Since 2017, the Walmart Foundation has awarded grants of over $86 million to benefit smallholders in India, Mexico, and Central America. These grants are expected to reach over one million smallholder farmers, of whom over 50% are women. In 2023, Walmart and the Walmart Foundation announced a new commitment to fund projects designed to help build capacity and advance the economic livelihoods of one million smallholder farmers in India by 2028 with at least 50% women. This follows a previous Walmart Foundation commitment to invest $25 million to strengthen smallholders in farmer producer organizations and farm yields in India between 2018 and 2022. That commitment was completed in FY2023 with over $39 million invested through 24 grant programs with 16 grantees.

Collaborating to Address Systemic Risks to Worker Well-Being

Systemic risks such as forced labor, unsafe working conditions, and gender inequity require collective action to bring about significant, positive, and lasting protection of worker well-being. Walmart and the Walmart Foundation collaborate with suppliers, non-governmental organizations, experts, and others to address root causes of these issues, foster innovative solutions, and accelerate adoption at scale.

As part of our ongoing approach to respect human rights, Walmart has committed to working with others to address risks to the dignity of workers in a minimum of 10 retail supply chains by 2025.

Apparel from Bangladesh

Tuna from Thailand

Shrimp from Thailand

Produce from U.S. & Mexico

Electronics from Malaysia

Hard Home from Malaysia

Home Textiles & Apparel from India

Home Textiles & Apparel from Vietnam

Apparel from Jordan

Apparel from Guatemala

To help prioritize key geographies and supply chains, we considered:

• Internal information: Walmart's salient human rights issues; Responsible Sourcing Compliance risk assessment; sourcing and compliance data, and sourcing and sales data.
• External information: World Bank Worldwide Governance Indicators; Global Slavery Proportions Index; BSI Supply Chain Risks Reports; and government, NGO, and media reports.

Within these supply chains, we are focused on addressing issues of forced labor and responsible recruitment, worker safety, and/or gender equity.

While specific interventions depend on the supply chain and issues in play, approaches within the 10 retail commodity supply chains typically include:

• Engaging suppliers to reinforce expectations, build capacity, and continuously improve
• Collaborating with stakeholders in consortia or task forces to develop and share best practices
• Investing in data and technology to increase transparency around labor practices
• Strengthening demand for responsible labor practices
• Enhancing worker and community voices
• Engaging with governments to advocate for laws, regulations and enforcement

Forced Labor & Responsible Recruitment

Walmart and the Walmart Foundation have prioritized working with stakeholders to combat forced labor and other exploitative practices in global supply chains. Debt bondage, one of the most common forms of forced labor, is often caused by employers and recruiters charging vulnerable workers exorbitant recruitment fees, which leaves workers indebted and unable to leave their jobs. While forced labor is a global problem, forced labor risks are most acute in certain geographies and supply chains, including products from Southeast Asia and agriculture in North America.

In 2016, Walmart set an aspiration to help make responsible recruitment the standard business practice for employers throughout global supply chains within a decade (by 2026). Since then, our business and philanthropic efforts 6  have focused on the following (which include over $55 million in grants promoting responsible recruitment of workers and fair and responsible labor practices in supply chains).

Setting Standards and Expectations for Suppliers

Walmart engages its suppliers to implement best practices and report on outcomes. Examples include:

• Supplier Leadership.  Walmart launched its Supplier Leadership Program on People in March 2022 with an initial focus on responsible recruitment. The program seeks to engage suppliers of seafood, fresh produce, and entertainment products to set goals and report progress in three priority areas: recruitment practices and capacity; worker and community empowerment; and transparency. Walmart developed the program after consulting with stakeholders, including suppliers and civil society organizations. Suppliers were invited to engage in the people program via the Walmart Sustainability Portal during Walmart’s 2022 sustainability reporting season; over 400 suppliers set goals and/or reported progress under one or more of the three priority areas.
• Ethical Charter on Responsible Labor Practices.  Walmart joined other members of the Joint Committee for Responsible Labor Practices convened by United Fresh and the Produce Marketing Association to develop the Ethical Charter in 2017. The Ethical Charter is a code of conduct that sets out key guiding principles and values and provides a framework for responsible labor practices in the sector and is aligned with Walmart's Standards for Suppliers. Walmart has encouraged its suppliers to endorse the Ethical Charter; as of the end of FY2023, 99% of Walmart U.S. fresh produce and floral net sales and 99% of Sam's Club U.S. fresh produce and floral net sales came from suppliers who have endorsed the Charter. Additionally, Walmart (alongside other buyers and suppliers) worked with ELEVATE and the Equitable Food Initiative (EFI) to develop and pilot non-audit and capacity-building approaches to support the implementation of the Ethical Charter. Building on that work, in 2022 the Walmart Foundation made an investment of more than $2 million in EFI to support industry implementation of the Ethical Charter.
• Labor Mobility Partnerships (LaMP).  LaMP is a U.S. non-profit focused on developing globally scalable and sustainable solutions that allow workers to safely access jobs abroad which support their economic advancement. In 2021 the Walmart Foundation made a grant to LaMP to support the growth and development of professional, quality H-2A recruitment operations in North American agriculture.

Recruitment

• Strengthen Recruitment Recruit workers through ethical and responsible recruiters or hire directly
• Build Capacity Build capacity and train staff who hire workers on responsible recruitment and forced labor prevention
• Invest in Responsible Labor Systems Invest in capacity building resources to strengthen recruitment agencies

Empowerment

• Strengthen Awareness Leverage NGOs to strengthen migrant workers’ knowledge around issues like safe migration
• Strengthen Voice Leverage worker-driven, ethical recruitment programs and CSOs to implement channels for independent grievance and remedy
• Leverage Regional or Industry-Based Initiatives Leverage regional/country projects to advance responsible recruitment

Transparency

• Commit to and Report Document and publicly report on challenges, successes, and impact of responsible recruitment activities
• Map Supply Chain Strengthen knowledge and process to assess risk to inform targeted effort
• Validate Approach Seek independent review to identify management gaps and develop time-bound action plans to strengthen current approach

Collaborating to Develop and Share Best Practices

We form and join coalitions to develop and share best practices with a common goal of addressing forced labor in supply chains. Examples include:

• Seafood Task Force.  Walmart has been a member of this international, multi-stakeholder initiative to address forced labor and illegal fishing in the Thai seafood industry since 2015. We have been a member of the organization’s board since 2016 and are a member of several of its working subgroups.
• Leadership Group for Responsible Recruitment (LGRR).  Walmart has been a member of this company-led collective advocacy platform since 2016. LGRR collaborates with other businesses, the recruitment industry, and governments to create demand for responsible recruitment, increase the supply of ethically sourced labor and improve protections for migrant workers through effective regulation. In 2020, the LGRR pilot-tested a reporting framework to better understand companies’ activities and progress in implementing the Employer Pays Principle. In 2022, the LGRR established three Action Groups to promote responsible recruitment with a focus on women migrant workers, government engagement, and the global recruitment industry. Walmart is a member of the government engagement group.
• Responsible Labor Initiative (RLI).  Walmart participated in the multi-stakeholder advisory group that assisted the Responsible Business Alliance (RBA) in launching the Responsible Labor Initiative in 2017 to bring together stakeholders from multiple industries that share recruitment supply chains to promote due diligence in labor practices and ensure that the rights of vulnerable workers are upheld. RLI also provides members with tools for forced labor due diligence including an independent worker helpline for RLI members and their suppliers in Malaysia called " Suara Kami ." Walmart served as a member of the RLI  Steering Committee through the end of 2022 .
• Electronics.  Governments, industry organizations and NGOs have identified the electronics supply chains in China and Malaysia as presenting heightened risks for forced and underage labor. To address this, we engaged with communication, and technology suppliers for the Walmart U.S. and Sam’s Club U.S. retail market supply chains to implement the RBA  Code of Conduct . Suppliers have the option to become an RBA member (regular or full category) or implement the RBA Validated Assessment Program for each disclosed facility. 79% of in-scope Walmart U.S. net sales in FY2023 were from suppliers who implemented the RBA Code of Conduct.
• Responsible Business Alliance Foundation.  A FY2021 Walmart Foundation grant is intended to incentivize recruitment agencies to adopt ethical recruitment practices and incentivize employers to use ethical recruitment agencies.
• International Research and Exchanges Board (IREX).  IREX works in Nepal to reduce human trafficking by providing at least 20 communities and over 100,000 people with resources and information around safe migration, and supporting over 200 government officials and criminal justice system actors to better assist migrants and their families. The Walmart Foundation’s FY2023 grant will help IREX build on their Navigator program in Nepal by: increasing access to accurate, timely information about the migration process and identifying responsible recruiters; expanding workers’ skills around financial, digital and information literacy; and strengthening civil society organizations and government institutions.
• FishWise.  In FY2020, the Walmart Foundation provided support to FishWise to expand its RISE (Roadmap for Improving Seafood Ethics) platform, which details steps companies can take to improve the evaluation and monitoring of labor practices in seafood supply chains.

Strengthening the Supply of & Demand For Responsibly Recruited Labor

We believe in the power of markets and seek to create demand for responsibly recruited labor and build capacity to meet that demand. Examples include:

• Stronger Together.  Stronger Together's multi-stakeholder program seeks to motivate the U.S. fresh produce sector to recognize and reward responsible recruitment, increasing the supply of ethically sourced labor and reducing risks for workers and businesses. Starting in 2019, the Walmart Foundation has made two investments in Stronger Together to drive market demand for responsible recruitment. The first established private sector and civil society stakeholder forums and helped strengthen U.S. produce suppliers’ understanding of recruitment risks for H-2A workers through online webinars. In 2021, a second investment is supporting Stronger Together to incubate a U.S. not-for-profit association for responsible recruitment to professionalize the practices of farm labor contractors and to further strengthen Stronger Together's U.S. Private Sector Forum of buyers and suppliers to support collaboration and accelerate the implementation of responsible recruitment. It has also supported the production of a new short film,  " Far From Home " , intended to highlight the importance of responsible recruitment to employers and migrant workers in North American agriculture.
• CIERTO.  In FY2021, the Walmart Foundation made an investment in CIERTO, a non-profit international farm labor contractor, to build capacity around the responsible recruitment of H-2A migrant workers through the Mexico/U.S. corridor to U.S. farms and to support implementation of the “Employer Pays Principle” under which the costs of recruitment should be borne not by the worker but by the employer.
• Global Fund to End Modern Slavery (GFEMS).  GFEMS was established in 2017 to help mobilize financial resources, unify global partners and efforts, and improve availability of data and evidence needed to improve the impact of forced labor and human trafficking prevention efforts.  The Walmart Foundation awarded a grant to GFEMS in 2021 to create safe migration pathways for migrant workers in Malaysia by empowering workers with tools and knowledge to assist workers throughout their migration journey and accelerating the establishment and growth of an ethical recruiter.
• Avina Americas Inc:  In 2021 the Walmart Foundation made a grant to Avina Americas to support the development of a more equitable recruitment model for migrant workers in Mexican agriculture. The work focuses on strengthening the capacity of civil society organizations to advance worker rights, including on key topics such as sexual harassment; abuse and trafficking; and responsible recruitment.  The grant supports the development of a shared vision for responsible recruitment amongst migrant workers representatives, civil society, government, the private sector and international organizations.

Investing in Tools and Transparency

We have funded efforts to understand the prevalence of social concerns in relevant supply chains and/or regions and track progress toward improvement. Examples include:

• International Justice Mission.  In 2016, the Walmart Foundation funded the first  comprehensive study  documenting the prevalence of forced labor and exploitation of fishermen on Thai fishing vessels.
• Woodrow Wilson International Center for Scholars.  Beginning in 2017 the Walmart Foundation made a series of grants to better understand and strengthen protections for agricultural workers including women and Indigenous migrants, help target enforcement efforts, and assess the growing role of an increasingly Mexican-born workforce in North American agriculture. These investments have strengthened our understanding of the farm labor market including the extent to which farms supplying different markets comply with labor laws and how direct-hire models strengthen labor protections.
• International Organization for Migration (IOM).  In 2019, Walmart engaged IOM to better understand the scope and scale of migrant labor in Walmart’s supply chains in Thailand and Malaysia and deliver training to increase awareness of responsible recruitment practices, improve the recruitment process of migrant workers, and decrease the risk of workers’ exploitation. IOM trained 100 facilities in Thailand and Malaysia and trained over 90 recruiters 7  on ethical recruitment. As a result, participants gained the knowledge and skills to help improve the protection of over 84,000 migrant workers.
• The Nature Conservancy (TNC):  A Walmart Foundation grant made in FY2021 funds TNC to help advance transparency tools for vessels at sea through two key work streams: connecting satellite monitoring to electronic monitoring on vessels to surface overfishing and sustainability threats in partnership with Global Fishing Watch with research support from University of California Santa Barbara and aiming to accelerate the scale of electronic monitoring on longline vessels in the Western and Central Pacific. A FY23 investment from the Walmart Foundation will help TNC partner with Conservation International and Global Fishing Watch to prototype and test how electronic monitoring technologies in fisheries may reduce the opacity of human rights abuses at sea.
• Global Fishing Watch (GFW). GFW creates and publicly shares knowledge about human activity at sea using cutting-edge technology to better safeguard and enable fair and sustainable use of the ocean. In FY2023, the Walmart Foundation made a grant to GFW that will support a data-driven and partnership approach with government, industry, and civil society partners in the Pacific region to identify vessels and build common approaches to reduce the risks of forced labor and illegal fishing in the seafood supply chain.

Enhancing Worker Voice

We support the development of tools and programs to build worker and community voices. Examples include:

• Issara Institute, Inc.  The Walmart Foundation has supported Issara Institute since 2016 in tackling issues of human trafficking and forced labor in Southeast Asia by empowering migrant workers, transforming recruitment and engaging businesses in the global supply chain. In 2021, the Walmart Foundation awarded a fifth grant to Issara to help modernize labor recruitment channels through the expansion of Issara’s Golden Dreams Recruitment Marketplace across a range of industries in Thailand and Malaysia that will allow prospective migrants to research and access job opportunities advertised across a range of industries in Thailand and Malaysia.
• Polaris.  Polaris works to end human trafficking and has built a Safety Net that connects national anti-trafficking hotlines in the U.S., Mexico, and Canada. Funding from the Walmart Foundation supported Polaris’s implementation of Nonechka, a mobile multilingual tech tool to engage Mexican agricultural migrant workers and strengthen their knowledge around potential exploitation which was also selected for the 2023 Tech Against Trafficking Accelerator Program. Funding also supported collaboration and sharing of best practices between victim services hotlines in Mexico and the U.S. and resulted in 539 labor trafficking and exploitation cases being referred for action by the appropriate authorities between January 1, 2021 and December 31, 2022. In 2022 the Walmart Foundation made a grant to Polaris focusing on building a data ecosystem and engagement channels to empower and promote the responsible recruitment of migrant workers in U.S.-Mexican agriculture. This data ecosystem will be leveraged to advocate for policy changes that increase protections for workers and strengthen accountability for exploitative employers and recruiters.

Advocating for Good Public Policy

We advocate for good public policy. Examples include:

• Walmart engagement . Walmart engages governments to advocate for policy change and the enforcement of current laws and regulations. For example, we have advocated for responsible recruitment through the Bali Process and direct engagement with government leaders in Southeast Asia.
• Woodrow Wilson International Center for Scholars.  The Walmart Foundation made a grant to the Woodrow Wilson International Center for Scholars in 2023 to foster positive changes to policy and industry recruitment and employment practices within North American agricultural labor markets through recommendations for evidence-based policies embraced by diverse stakeholders.

Worker Safety

Walmart expects our suppliers to provide a safe working environment, but endemic safety challenges remain in certain parts of the world. We have prioritized initiatives focused on the apparel and footwear industries in geographies with acute safety challenges to help improve worker safety in our own supply chain and beyond.

Safety in Bangladesh

We continue to prioritize safety in Bangladesh, including through Nirapon, an organization focused on monitoring ongoing safety compliance and maintaining the progress made in recent years. We require Bangladesh facilities within the scope of our disclosure policy to be in good standing with Nirapon; we use Nirapon safety assessments in our facility color ratings and facilities that backslide on safety or fail to remediate issues can be assessed a Red rating.

Nirapon built on the foundational work of the Alliance for Bangladesh Worker Safety, which concluded its five-year mission at the end of 2018. Walmart was a founding member of the Alliance, which trained nearly 1.6 million factory employees on basic safety and provided more than 1.5 million workers in 1,000 factories access to a helpline to anonymously report safety or other job-related concerns. Approximately 93% of total remediation items across Alliance-affiliated factories were completed—including 90% of high-priority remediation items.

Life and Building Safety (LABS) Initiative

Walmart is a founding member (and on the steering committee) of  LABS , an initiative comprising European and American brands that have come together to set international best practices for factory safety in the apparel and footwear industries. LABS works with engineering companies to develop country-specific standards for safety in factories. It also commissions audits around fire, electrical and structural risks and asks factories to develop supervised Corrective Action Plans to remediate problems and then assesses implementation of their plans. LABS also provides training for factory workers on safety, maintaining fire prevention systems, and use of the LABS helpline to report building safety concerns. LABS has been active in India and Vietnam since 2019 and in Cambodia since 2022. Collectively, LABS programs have reached over 837,000 workers. See  the LABS website  for further details.

Gender Equity

Beginning with the 2011 launch of the five-year Women’s Economic Empowerment (WEE) initiative, Walmart and the Walmart Foundation have shaped and participated in special initiatives to help empower women working in global supply chains around the world. Since the conclusion of that initiative, Walmart has continued to support gender equity in supply chains, including by:

• Sourcing products and services from women-led companies,
• Engagement with the Women's Business Enterprise National Council, which named Walmart as one of America's Top Corporations for Women Business Enterprises. 
• The Walmart Foundation’s  Market Access program  discussed above.

We pursue efforts in support of gender equity throughout our business, ranging from responsible sourcing standards and social auditing practices along the supply chain to internal gender equity policies, practices, and commitments.

• Human rights risks are complex and are often the result of systemic issues including deeply entrenched economic practices, workers lacking knowledge, support, or tools to safeguard their rights, and inconsistent government regulation and enforcement across countries in which products are made. These factors make it challenging for any single organization to have an impact.  
• Progress in addressing human rights issues is dependent on the maturity, rigor and efficacy of third-party standards and initiatives, which requires a critical mass of suppliers and retailers to align on common standards and best practices. For certain practices, there currently is no universal set of standards for responsible or sustainable production and/or certification beyond compliance with the law (e.g., responsible recruitment, wage/hour). Furthermore, there are limits to the efficacy of tools used to monitor compliance with expectations.  
• The success of Walmart’s programs is dependent on suppliers’ capacity and willingness to meet high standards, as well as their performance.  
• Human rights risks are often upstream and beyond the reach of traditional retailer oversight and monitoring tools. The use of technology to improve transparency and traceability can help, but adoption takes time and further innovation is necessary to meet these challenges.
• The breadth of Walmart's global product offerings and dispersed geographical reach of supply chains can present challenges for supplier engagement and risk identification and mitigation. Moreover, certain products can only be obtained from specific regions of the world, limiting options for alternative sources.  
• Walmart’s ability to scale more sustainable options is dependent on customer preferences and demand (which can depend on the cost and convenience of such options) and the availability and cost of preferred products, ingredients, commodities and inputs. Growth in and/or changes in our business can challenge our ability to meet customer demands consistent with our aspiration.  
• Pandemics, weather-related events and political/social unrest can create supply/demand volatility and interrupt supply chains.

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1. Where a facility is required to be disclosed to Walmart, “Active” status denotes that the supplier can use the facility for Walmart production.

2. Facility color ratings denote the seriousness of findings identified in the audits.

3. Based on data provided by Ethical Charter on April 6, 2023.

4. Based on RBA membership (regular or full category) or implementing the RBA Validated Assessment Program for each disclosed facility.

5. A diverse supplier is defined as a U.S. privately held company that is recognized as at least 51% owned and operated by a woman, minority, veteran, disabled veteran, person with a disability or member of the lesbian, gay, bisexual, transgender, or queer (LGBTQ+) community. "Diverse supplier" carries this definition throughout this brief.

6. The Walmart Foundation uses philanthropy to complement business initiatives – we complement and extend the impact of Walmart’s social and environmental initiatives through philanthropic efforts.

7. Walmart opened training to recruitment agencies external from our supply chain, enabling IOM to reach a total of 93 recruiters. According to IOM, 39 of those recruiters were supplying workers for Walmart suppliers’ facilities at the time.

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Walmart Supply Chain: Building a Successful Integrated Supply Chain for Sustainable Competitive Advantage

• Case Studies

Introduction

The global business landscape has witnessed an increasingly fierce competition, pushing companies to seek effective strategies to maintain and enhance their competitiveness. Among these strategies, the role of supply chain capability stands out as a key factor in driving success. A well-optimized supply chain not only ensures efficient delivery and cost-effectiveness but also provides companies with a competitive advantage in the market. In this context, Walmart, the world’s largest retailer, has demonstrated a highly successful and integrated Walmart supply chain, propelling its growth and dominance in the retail industry.

This case study aims to delve into the significance of supply chain capability for enhancing a company’s competitiveness and how it serves as a competitive advantage for companies. Additionally, we will explore the imperative need for supply chain redesign in the global economy to adapt to the challenges of the modern era of globalization. Focusing on Walmart’s exemplary supply chain practices, the purpose of this case study is to analyze the features of its successful integrated supply chain while identifying relevant issues in the context of the current globalized market.

[Read More: Rivian: Navigating Supply Chain and Operational Challenges and Embracing Growth ]

Walmart’s Supply Chain: Integrated Supply Chain Success

Data-driven success factors.

In the realm of modern supply chain management, data-driven strategies play a pivotal role in enhancing a company’s competitiveness. Walmart’s remarkable success as the world’s largest retailer can be attributed to its astute utilization of data analysis and advanced technologies within its integrated supply chain. This section delves into the key data-driven success factors that have propelled Walmart’s supply chain to the forefront of the retail industry.

[Read More: ERP Master Data: A Guide to Improve Quality & Governance ]

Role of Data Analysis through Barcode Scanning and Point-of-Sale Systems

Data analysis is at the core of Walmart’s supply chain prowess. The company has implemented sophisticated barcode scanning and point-of-sale systems to collect real-time data from its stores. By employing these technologies, Walmart gains valuable insights into customer buying behavior, sales trends, and inventory levels. The ability to analyze this data enables the retail giant to make informed decisions on product procurement, inventory management, and demand forecasting.

Efficient Supply Chain Practices: Automated Distribution Centers and Computerized Inventory Systems

Automation is a key component of Walmart’s efficient supply chain practices. The company has strategically invested in automated distribution centers, streamlining the flow of products from manufacturers to stores. These automated facilities not only optimize the handling and movement of goods but also enable faster order fulfillment and replenishment. Additionally, computerized inventory systems provide Walmart with accurate and up-to-date information about stock levels, allowing for precise inventory control and reducing the risk of stockouts or excess inventory.

Utilizing Walmart’s Own Trucking System and Cross-Docking Logistics

Another critical factor contributing to Walmart’s supply chain success is the utilization of its private trucking system and cross-docking logistics. By maintaining its own trucking fleet, Walmart gains greater control over transportation and delivery schedules, leading to improved efficiency and timely product replenishment. Furthermore, the adoption of cross-docking logistics techniques has enabled Walmart to minimize the need for intermediate storage, leading to reduced handling costs and faster product movement through the supply chain.

[Read More: The Ultimate Guide to Contract Logistics: What You Need to Know ]

Information Technologies Driving Efficiency

In Walmart’s journey towards becoming a global leader, information technologies have played a pivotal role in driving efficiency within the integrated Walmart supply chain. The retail giant has strategically adopted various IT initiatives to optimize its operations, enhance collaboration with suppliers, and achieve real-time inventory targeting. These technologies have contributed significantly to Walmart’s supply chain success, allowing them to maintain a competitive edge in the retail industry.

Collaborative Planning, Forecasting, and Replenishment (CPFR)

One of the key information technologies that have bolstered Walmart’s supply chain efficiency is the implementation of Collaborative Planning, Forecasting, and Replenishment (CPFR). This system facilitates seamless communication and coordination between Walmart and its supply chain partners, including suppliers and distributors. By sharing real-time sales data and demand information, CPFR enables accurate forecasting and demand planning, minimizing information distortion, and promoting synchronized inventory replenishment. The CPFR program has been instrumental in enhancing overall supply chain visibility and efficiency, allowing Walmart to respond promptly to fluctuations in demand and supply, reducing stockouts, and optimizing inventory levels.

Vendor-Managed Inventory (VMI) and Its Benefits

Walmart’s adoption of Vendor-Managed Inventory (VMI) has been another critical information technology-driven initiative. Through VMI, Walmart empowers its suppliers to take on the responsibility of managing their inventory stored in Walmart’s warehouses. By granting suppliers access to real-time inventory data and sales information, Walmart facilitates efficient inventory tracking and replenishment. This hands-on approach by suppliers results in streamlined inventory management, reduced delays in replenishment, and lower stockouts. The VMI model has proved particularly advantageous for Walmart due to its vast product range and numerous suppliers, making inventory management complex and costly if managed solely by the retailer.

[Read More: Vendor Managed Inventory: A Comprehensive Guide ]

Leveraging RFID Technology for Real-Time Inventory Targeting

RFID (Radio Frequency Identification) technology has been a game-changer in Walmart’s pursuit of real-time inventory targeting and enhanced supply chain visibility. By employing RFID tags on products, Walmart can track the movement of inventory throughout the supply chain in real-time. RFID enables accurate and automated inventory tracking, reducing the need for manual counting and minimizing errors in inventory management. The technology also provides crucial details, such as production time, location, and expiry dates of goods, allowing for efficient inventory targeting and better control over inventory turnover. RFID technology has been instrumental in Walmart’s cost reduction efforts, ensuring optimal stock levels while avoiding overstocking and unnecessary inventory holding costs.

Achieving Competitive Advantage through Strategy

Walmart’s competitive strategy: “everyday low prices” (edlp).

Walmart’s competitive advantage is deeply rooted in its strategic focus on offering “Everyday Low Prices” (EDLP) to its customers. The EDLP strategy revolves around providing high-quality products and services at the lowest possible prices, ensuring that customers can benefit from affordable prices every day. This approach sets Walmart apart from its competitors and has been instrumental in establishing the company as a dominant force in the retail industry.

Implementing the “Everyday Low Costs” (EDLC) Policy through Direct Procurement

To support its EDLP strategy, Walmart follows an “Everyday Low Costs” (EDLC) policy in its supply chain management. One of the key elements of the EDLC policy is the direct procurement of items from suppliers, eliminating intermediaries in the process. By procuring directly from manufacturers, Walmart can negotiate and understand their cost structure, enabling them to make informed purchasing decisions and obtain the best prices for their products.

Walmart’s emphasis on direct procurement is further bolstered by the use of technology and information systems. The company has implemented a central database, store-level point-of-sale systems, and a satellite network, along with barcodes and RFID technology as previously mentioned. These technologies allow Walmart to gather and analyze real-time store-level information, including sales data and external factors like weather forecasts, to enhance the accuracy of purchasing predictions. This integration of information technology helps Walmart optimize its procurement process and maintain low costs throughout the supply chain.

Utilizing Information Systems for Better Inventory Management

Effective inventory management is critical for Walmart to sustain its competitive advantage through the EDLP strategy. The company relies on information systems and information technology (IT) capabilities to control inventory levels efficiently. By capturing customers’ demand information, Walmart can identify popular products and stock them adequately, leading to an overall reduction in inventory.

One notable example of Walmart’s successful utilization of information systems is its collaboration with Procter & Gamble (P&G) through the Collaborative Planning, Forecasting, and Replenishment (CPFR) program. This program links all computers of P&G to Walmart’s stores and warehouses, allowing for efficient replenishment orders based on real-time inventory needs. Additionally, Walmart’s Retail Link , developed in the early 1990s, serves as another vital IT application for storing data, sharing it with vendors, and aiding in shipment routing assignments.

Challenges and Opportunities

Supplier cooperation and collaboration.

Walmart’s supply chain success can be attributed to its strong relationships with suppliers, but achieving and maintaining supplier cooperation and collaboration is not without challenges. Let’s explore the challenges and opportunities in this area:

Challenges in Obtaining Suppliers’ Cooperation

• Supplier Resistance to Direct Procurement: Walmart follows an “Everyday Low Costs” (EDLC) policy by directly procuring items from suppliers, eliminating intermediaries. However, some suppliers may be reluctant to cooperate with this approach as it can disrupt existing distribution channels and potentially reduce their bargaining power.
• Complex Supplier Networks: With thousands of suppliers across various product categories, managing diverse supplier networks can be challenging. Each supplier may have different production and delivery schedules, making coordination difficult.
• Balancing Profit Margins: As Walmart emphasizes low prices, maintaining a balance between cost savings and ensuring suppliers’ profitability can be a delicate task. Suppliers may resist pressure to reduce prices further to maintain their margins.

Opportunities for Enhanced Supplier Cooperation and Collaboration

• Establishing Transparent Communication Channels: Walmart can create transparent and open communication channels with its suppliers to foster better cooperation. Clear communication regarding demand forecasts, inventory levels, and potential disruptions can help suppliers plan their production and deliveries more efficiently.
• Supplier Incentive Programs: Introducing incentive programs that reward suppliers for meeting certain performance metrics, such as on-time delivery or cost reduction, can motivate suppliers to actively collaborate and improve their supply chain capabilities.
• Collaborative Planning, Forecasting, and Replenishment (CPFR): Walmart can leverage technology, such as CPFR, to share real-time sales data and demand forecasts with its suppliers. This collaborative approach allows suppliers to align their production and inventory management with actual market demand, reducing the bullwhip effect and optimizing the supply chain.
• Sharing Inventory Visibility: Providing suppliers with access to inventory data, including stock levels and sales information, can help them plan production and deliveries more effectively. This visibility can prevent stockouts and overstocking issues.
• Long-term Partnerships: Building long-term strategic partnerships with key suppliers can create a sense of mutual commitment and trust. By assuring consistent business over an extended period, Walmart can foster stronger relationships and supplier loyalty.

[Read More: 3 Types of Supplier Segmentation Matrix You Can Use to Classify Suppliers ]

Importance of Collaboration to Enhance Supply Chain Efficiency

• Reducing Lead Times: Effective collaboration with suppliers can help shorten lead times by streamlining production and transportation processes. Faster lead times enables Walmart to respond quickly to changes in demand, reducing the risk of stockouts.
• Efficient Inventory Management: Collaborative efforts with suppliers enable better inventory planning and management. Suppliers can adjust production based on actual demand, reducing excess inventory and associated costs.
• Supply Chain Flexibility: Collaboration fosters agility and adaptability in the supply chain. When Walmart and its suppliers work together closely, they can quickly adjust to market changes, supply disruptions, or new opportunities.
• Cost Reduction: Improved supplier collaboration can lead to cost-saving opportunities. By eliminating unnecessary intermediaries and optimizing production and transportation, overall supply chain costs can be minimized.

The Incentives Alignment Issue

In any supply chain, maintaining a balance of profit margins among different parties is essential for efficient collaboration and sustained success. However, achieving incentives alignment can be challenging, and this issue is particularly relevant in the case of Walmart supply chain. Addressing misalignment of interests between Walmart and its suppliers is crucial for optimizing the overall performance of the supply chain and ensuring long-term success. The following points highlight the incentives alignment issue faced by Walmart:

1. Balancing Profit Margins Among Different Supply Chain Parties:

Walmart’s success is attributed to its ability to offer high-quality products and services at the lowest affordable prices. To achieve this, Walmart employs various cost-cutting strategies, such as direct procurement from suppliers and streamlined distribution practices. While these strategies help Walmart maintain competitive prices, they can create challenges for suppliers who may face pressure to lower their own profit margins to meet Walmart’s demands. This misalignment of profit margins can lead to strained relationships and potentially impact the overall efficiency of the supply chain.

2. Misalignment of Interests Between Walmart and Suppliers:

Walmart’s size and market dominance can lead to power imbalances in supplier relationships. Suppliers may feel compelled to comply with Walmart’s demands to maintain access to its large customer base. However, this can lead to situations where suppliers may not have enough leverage to negotiate favorable terms, impacting their own profitability. As a result, suppliers may be less inclined to invest in innovations or improvements that would benefit the supply chain as a whole.

3. Conflict Between Inventory Growth and Sales Growth:

Walmart faced inventory growth issues in the past, with the inventory growth rate outpacing the sales growth rate. This can be indicative of conflicting incentives between Walmart and its suppliers. Suppliers may prioritize producing and delivering more inventory to ensure they meet Walmart’s demands, even if the sales growth does not keep up with the increased inventory. This misalignment can lead to excess inventory, increased carrying costs, and potential stockouts.

4. The Need for a New Triple-A Supply Chain:

Addressing the incentives alignment issue requires a fundamental shift in the supply chain strategy. Lee (2004) proposed the concept of a new Triple-A supply chain for Walmart and other companies in the 21st century. The Triple-A supply chain emphasizes agility, adaptability, and alignment to create a sustainable competitive advantage. Achieving alignment among all participating parties is crucial to optimize supply chain performance and ensure that risks and rewards are distributed fairly.

The Triple-A Supply Chain Approach

In today’s competitive business landscape, companies like Walmart recognize that a successful supply chain is not just about having a fast and cost-effective system. To maintain a sustainable competitive advantage and address the challenges of the global economy, it is essential to redesign supply chains that incorporate agility, adaptability, and alignment. This section explores the concept of the Triple-A Supply Chain Approach, which emphasizes these three key qualities that an ideal supply chain should possess: agility, adaptability, and alignment of interests among all participating parties.

The Three Qualities of an Ideal Supply Chain

Agility for quick and cost-effective responses:.

Agility refers to a supply chain’s ability to respond quickly and cost-effectively to sudden changes in demand, supply, and external disruptions. In the fast-paced business environment, companies must be able to adapt swiftly to fluctuations in customer preferences, market conditions, and unforeseen events. For Walmart, agility has been a critical factor in maintaining its leadership position in the retail industry. The company’s investments in technology and supply chain optimization strategies have allowed them to optimize inventory levels and respond rapidly to changing customer demands, ensuring the availability of products while minimizing inventory costs.

Adaptability to Handle Changes in Demand and Supply:

Supply chains should be adaptable and flexible enough to handle variations in demand and supply patterns. Demand forecasts can be uncertain, and unexpected supply chain disruptions may occur, making adaptability a vital quality. Walmart’s focus on omnichannel and various fulfillment options, such as in-store pickup and ship from store, demonstrates their commitment to adaptability. By utilizing multiple channels, Walmart can cater to diverse customer preferences, ensuring an uninterrupted flow of products to meet demand.

Alignment of Interests among All Participating Parties:

One of the significant challenges in supply chain management is ensuring alignment of interests among all parties involved, including suppliers, manufacturers, distributors, and retailers. Walmart’s scale and dominance in the retail market have allowed them to establish strong relationships with vendors, enabling strategic partnerships with vendors who can meet their high-volume demands. Additionally, Walmart’s adoption of Vendor Managed Inventory (VMI) allows suppliers to manage their own inventory stored in Walmart’s warehouses. This collaboration aligns the incentives of suppliers and Walmart, streamlining inventory management and ensuring timely replenishment.

In conclusion, Walmart’s integrated supply chain has been a crucial factor in the company’s global dominance and sustained competitive advantage. By strategically investing in technology and optimizing its supply chain, Walmart has managed to maintain its position as the world’s largest retailer with over $572 billion in revenue in 2022.

Walmart’s success serves as a compelling example of the importance of a well-integrated supply chain in achieving and sustaining competitive advantage in the global market. As businesses continue to navigate the complexities of the 21st-century economy, building and enhancing supply chain capabilities will remain a critical aspect of ensuring sustainable growth and profitability. By prioritizing agility, adaptability, and alignment, companies can follow in Walmart’s footsteps and position themselves for continued success in the dynamic and ever-evolving global marketplace.

References:

• Lee H.L. (2004): The triple A supply chain. “Harvard Business Review”, Vol. 82, No. 10, pp. 102-112. 
• 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 and Management”, Vol. 29(3), pp. 102-117

About the Author –  Dr Muddassir Ahmed

Dr MuddassirAhmed  is the Founder & CEO of SCMDOJO. He is a  global speaker ,  vlogger  and  supply chain industry expert  with 17 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East and South East Asia in various Supply Chain leadership roles.   Dr. Muddassir   has received a PhD in Management Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and founded the leading supply chain platform SCMDOJO to enable supply chain professionals and teams to thrive by providing best-in-class knowledge content, tools and access to experts.

You can follow him on  LinkedIn ,  Facebook ,  Twitter  or  Instagram .

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  Walmart's Supply Chain       Case Study: Supply Chain...

  Walmart's Supply Chain       Case Study: Supply Chain...

Walmart's Supply Chain

Case Study: Supply Chain Management at Walmart

Walmart is one of the world's largest retailers, operating over 11,000 stores in 27 countries. The company's success is largely attributed to its highly efficient and effective supply chain management system.

One of the key factors that contribute to Walmart's supply chain success is its use of advanced technology. The company's supply chain is heavily automated, with sophisticated software and systems that allow it to track inventory in real-time, manage shipments, and optimize routing and delivery.

Walmart also employs a vendor-managed inventory (VMI) system, which allows suppliers to manage inventory levels at Walmart's warehouses and stores. Through the VMI system, Walmart can closely monitor its inventory levels and reorder products automatically, ensuring that stores never run out of stock.

In addition, Walmart has developed a highly effective transportation system that allows it to move products quickly and efficiently from suppliers to distribution centers to stores. The company operates its own fleet of trucks and has invested heavily in logistics technology to optimize routing and delivery schedules.

Walmart's supply chain management practices have had a significant impact on the company's operations and financial performance. By optimizing inventory levels and transportation routes, the company has been able to reduce costs and improve efficiency, resulting in higher profitability and increased customer satisfaction.

For example, Walmart has been able to reduce inventory carrying costs by over 20% through its use of VMI, and the company's logistics technology has helped to improve delivery times and reduce transportation costs by up to 15%. These improvements have helped Walmart to maintain its low-price reputation and stay ahead of its competitors.

Overall, Walmart's success in supply chain management is a testament to the importance of effective supply chain management in operations. By investing in advanced technology, optimizing inventory levels, and streamlining transportation processes, companies can improve their operational efficiency, reduce costs, and deliver better products and services to their customers.

Efficient and Accurate Inventory Management: Walmart's inventory management system is highly sophisticated, with the use of advanced technology to monitor inventory levels in real-time. The company uses a combination of barcode scanning, RFID (Radio Frequency Identification), and other tracking technologies to keep track of its products from suppliers to stores. This allows Walmart to monitor its inventory levels and reorder products automatically, which helps to ensure that stores always have the right products in stock.

Vendor-Managed Inventory (VMI): Walmart's VMI system allows suppliers to manage inventory levels at Walmart's warehouses and stores. Through this system, suppliers can access real-time inventory data and automatically replenish inventory levels. This system not only ensures that Walmart stores have the right products in stock, but it also helps to reduce inventory carrying costs.

Streamlined Transportation Processes: Walmart has developed a highly efficient transportation system that helps to move products quickly and efficiently from suppliers to distribution centers to stores. The company operates its own fleet of trucks and has invested heavily in logistics technology to optimize routing and delivery schedules. Walmart also uses a cross-docking system, which involves unloading products from one truck and loading them directly onto another, to reduce transportation costs and speed up delivery times.

Collaboration with Suppliers: Walmart works closely with its suppliers to ensure that they meet the company's quality and delivery standards. The company provides suppliers with training and support to help them improve their processes and meet Walmart's expectations. This collaboration helps to ensure that suppliers are able to deliver high-quality products at the right time and at the right price.

Emphasis on Sustainability: Walmart has made a significant commitment to sustainability, and this is reflected in its supply chain management practices. The company works with suppliers to reduce packaging waste, optimize transportation routes to reduce emissions, and improve the energy efficiency of its stores and warehouses.

Overall, Walmart's supply chain management practices are highly effective and have contributed significantly to the company's success. By investing in advanced technology, collaborating with suppliers, and focusing on sustainability, Walmart has been able to reduce costs, improve efficiency, and deliver high-quality products to its customers.

Advanced Technology: Walmart heavily relies on advanced technology to manage its supply chain. The company uses a variety of tools to monitor inventory levels, track shipments, and optimize transportation routes. For example, Walmart uses sophisticated forecasting and planning software to anticipate demand and ensure that it has the right products in the right locations. Walmart also uses GPS and other technologies to track shipments and optimize delivery routes.

Cross-Docking: Walmart's use of cross-docking has been a critical component of its supply chain strategy. Cross-docking allows Walmart to bypass its distribution centers and deliver products directly from suppliers to stores. This reduces transportation costs and speeds up delivery times, enabling Walmart to get products to its stores faster than its competitors.

Sustainability: Walmart has made significant efforts to reduce the environmental impact of its supply chain. The company has set ambitious goals to reduce greenhouse gas emissions and waste and to source more sustainable products. To achieve these goals, Walmart works with suppliers to improve their sustainability practices, such as reducing packaging waste and sourcing renewable energy.

Supplier Collaboration: Walmart works closely with its suppliers to improve efficiency and quality. The company provides training and support to help suppliers meet Walmart's expectations for product quality, delivery times, and sustainability. This collaboration has helped to reduce costs and improve product quality, benefiting both Walmart and its suppliers.

Continuous Improvement: Walmart is committed to continuous improvement in its supply chain management practices. The company regularly reviews its processes and looks for opportunities to improve efficiency and reduce costs. For example, Walmart recently launched a program to reduce the amount of cardboard used in its packaging, which has already resulted in significant cost savings.

Overall, Walmart's supply chain management practices are highly effective and have helped the company to maintain its position as a leading retailer. By using advanced technology, optimizing transportation routes, and collaborating with suppliers, Walmart has been able to reduce costs, improve efficiency, and deliver high-quality products to its customers. At the same time, Walmart's commitment to sustainability and continuous improvement ensures that the company remains responsive to the changing needs of its customers and the environment.

5 essay Questions on this case study 

How does Walmart's use of technology help the company manage its supply chain more effectively? Provide specific examples of technologies that Walmart uses and explain how they contribute to the company's success.

Explain how Walmart's cross-docking strategy has helped the company to reduce costs and speed up delivery times. What are the advantages and disadvantages of cross-docking, and why has it been a successful strategy for Walmart?

Walmart has made a significant commitment to sustainability in its supply chain management practices. What are some of the ways that Walmart has worked with suppliers to improve sustainability, and what impact has this had on the company's operations?

Collaboration with suppliers is a key aspect of Walmart's supply chain management strategy. How does Walmart work with suppliers to improve efficiency and quality, and what benefits does this collaboration provide to both Walmart and its suppliers?

Walmart is committed to continuous improvement in its supply chain management practices. Provide examples of recent initiatives that Walmart has undertaken to improve its supply chain, and explain how these initiatives have helped the company to remain competitive in the retail industry.

Answer & Explanation

1. How does Walmart's use of technology help the company manage its supply chain more effectively? Provide specific examples of technologies that Walmart uses and explain how they contribute to the company's success.

With the use of advanced technology, Walmart's supply chain became highly efficient. Everything is controlled and can be monitored automatically between the company and its suppliers, specifically the inventory level. And as stated, the software and systems that Walmart is using allow it to track inventory in real-time, manage shipments, and optimize routing and delivery. Quick access, with the help of advanced technology, makes the supply chain convenient for both the supplier and the company.

Examples of technologies that Walmart is using and their contribution to the company's success:

• Vendor-Managed Inventory (VMI) system - It allows suppliers to manage inventory levels at Walmart's warehouses and stores. Through this system, suppliers can access real-time inventory data and automatically replenish inventory levels. This system not only ensures that Walmart stores have the right products in stock, but it also helps to reduce inventory carrying costs. (The company's logistics technology has helped to improve delivery times and reduce transportation costs by up to 15%).
• Barcode scanning, RFID (Radio Frequency Identification), and other tracking technologies - These are used to keep track of Walmart's products from suppliers to stores. These also allows Walmart to monitor its inventory levels and reorder products automatically, which helps to ensure that stores always have the right products in stock.
• Sophisticated forecasting and planning software - It is used to anticipate demand and ensure that it has the right products in the right locations.
• GPS and other technologies - It is used to track shipments and optimize delivery routes.

2. Explain how Walmart's cross-docking strategy has helped the company to reduce costs and speed up delivery times. What are the advantages and disadvantages of cross-docking, and why has it been a successful strategy for Walmart?

As stated in the case study, Walmart's use of cross-docking has been a critical component of its supply chain strategy. Cross-docking allows Walmart to bypass its distribution centers and deliver products directly from suppliers to stores. This reduces transportation costs and speeds up delivery times, enabling Walmart to get products to its stores faster than its competitors.

*What is cross-docking and it's advantages/disadvantages?

• Cross-docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain (stores) with marginal to no handling or storage time. (Ref: https://www. adaptalift.com.au)

ADVANTAGES:

• Eliminates the need for large warehouse
• Reduces labor costs which includes packing and storing products
• Reduces material handling and the time products reach the customer

DISADVANTAGES:

• Need for reliable suppliers (must be trusted) and sufficient transport carriers
• It requires in depth planning, coordination and management
• Freight handling may cause product damage and may not deliver product on time

The disadvantages can be prevented only if the company chooses its suppliers and transport carriers wisely. This is the strategy that Walmart is using to reduce costs and deliver products safely and quickly to its customers, which leads to customer satisfaction.

3. Walmart has made a significant commitment to sustainability in its supply chain management practices. What are some of the ways that Walmart has worked with suppliers to improve sustainability, and what impact has this had on the company's operations?

• Walmart works with suppliers to improve their sustainability practices, such as reducing packaging waste and sourcing renewable energy.
• Supplier Collaboration, which benefits both the company and suppliers by reducing cost and improving product quality.
• Continuous improvement in its supply chain management practices: The company regularly reviews its processes and looks for opportunities to improve efficiency and reduce costs.

4. Collaboration with suppliers is a key aspect of Walmart's supply chain management strategy. How does Walmart work with suppliers to improve efficiency and quality, and what benefits does this collaboration provide to both Walmart and its suppliers?

Based on the case study, Walmart works closely with its suppliers to improve efficiency and quality. It provides training and support to help suppliers meet Walmart's expectations for product quality, delivery times, and sustainability. This collaboration has helped to reduce costs and improve product quality, benefiting both Walmart and its suppliers.

5. Walmart is committed to continuous improvement in its supply chain management practices. Provide examples of recent initiatives that Walmart has undertaken to improve its supply chain, and explain how these initiatives have helped the company to remain competitive in the retail industry.

Continuous improvement increase productivity and efficiency of a company. Walmart is committed to continuous improvement most especially to its supply chain management. And because their supply chain practices are highly effective, it makes them one of the world's largest retailers. 

Examples of the initiatives that Walmart has undertaken cited in the case study: 

• Walmart recently launched a program to reduce the amount of cardboard used in its packaging, which has already resulted in significant cost savings.
• Walmart has developed a highly effective transportation system that allows it to move products quickly and efficiently from suppliers to distribution centers to stores. The company operates its own fleet of trucks and has invested heavily in logistics technology to optimize routing and delivery schedules.

Advance technology, or the technology itself, is of great help to most companies, especially in its supply chain management. Successful companies nowadays are using technologies that continuously give them competitive advantages in the economic world. Technologies are for long term use, and although it requires maintenance, it enable companies to be more profitable and grow rapidly. 

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Case Study | Wal-Marts Supply Chain Management Practices

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Paper to be presented at conference on Global …

Barry Eidlin

Supply chain management is a key of retail enterprises survival and development. For a better understanding, we intended to illustrate this concept with the case of Wal-Mart and Carrefour in China. In this article, we focused on the Wal-Mart and Carrefour's supply chain management strategies in China, introduced the supply chain management from four parts. " Customer is the first consideration! " and " Thinking global and acting local " are also pertinent to application in the management of supply chains. Managers may identify key processes and consider the possible contributions of each to the efficiency of their own chains. Through comparisons of supply chain management between Wal-Mart and Carrefour's strategies in China to give Chinese local retail enterprises enlightenment, and should help those wishing to explore the uniqueness of the Chinese market and the challenges that will be encountered when expanding their businesses in China.

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Wal-Mart’s Supply Chain Management Practices

January 8, 2010

Case Study Abstract

The focus of this case study is the supply chain of the world’s largest retailer, Wal-Mart. Wal-Mart in recent years has struggled with its supply chain. The big question is: Will Wal-Mart be able to revive the competitive advantage it had in the past with its efficient supply chain? This case discusses the supply chain management practices of Wal-Mart over the years. A brief of Wal-Mart’s past distribution, logistics and inventory management processes is covered. The use of innovative Information Technology (IT) practices to enable the supply chain is discussed and highlighted. The benefits or competitive advantage Wal-Mart derived over the years from its supply chain management practices is also covered.

Table of Contents

• Introduction – Can Wal-Mart sustain its Supply Chain Advantage?
• Wal-Mart in US Retail Market
• Wal-Mart – Company Background
• Wal-Mart – Timeline
• Wal-Mart: Quick Facts (Revenues, Total Employees and Stores, Competitors, Major Brands/Labels, Business/Growth Strategy)
• MANAGING THE SUPPLY CHAIN – THE WAL-MART WAY
• Pricing and Procurement Strategy
• Supply Chain Integration through Product/Process Knowledge Sharing
• Supply Chain Partnerships
• Distribution Strategy
• Logistics Management
• Cross Docking
• Inventory Management
• Store Formats
• Wal-Mart – International operating formats
• Related Reading
• Questions for discussion
• View sample pages of this case study

Case Study Keywords: Wal-Mart, Supply Chain Management, Retailing Strategy Case Study, Logistics and Distribution, IT enabled supply chain, Information Technology, Supply Chain Partnerships, supply chain integration, information sharing, inventory management, retail store formats, cross docking, pricing and procurement, Sam Walton, discount stores, walmart.com.

Case questions for discussion.

• Wal-Mart’s focus on supply chain management is responsible for its leadership in the retail industry. Discuss the distribution and logistics practices adopted by Wal-Mart. How far has Wal-Mart’s supply chain contributed to its competitive advantage? Explain.
• Companies that have significant buyer power and are very focused on exerting price pressure on their suppliers rather than seeking increased profitability through business process innovations. Support this statement with examples/best practices from your own field.
• Wal-Mart has always used innovative information technology tools to supplement its supply chain. In a few words, explain how use of IT tools/enabled processes have benefited Wal-Mart. How has IT impacted you/your department?
• What steps can Wal-Mart take in order to revive/sustain its supply chain advantage?
• Wal-Mart invited its major suppliers to develop profitable supply chain partnerships. Discuss how good/bad is sharing knowledge/critical information with vendors/suppliers or even customers?
• “It’s not a sale; it’s a great price you can count on every day to make your dollar go further at Wal-Mart.”, as quoted in the article, “Pricing Philosophy,” posted on www.walmart.com. Comment.

Other Case Studies on Wal-Mart

• Organization Culture at Wal-Mart
• Wal-Mart in Japan
• Tesco takes on US Wal-Mart

Case Updates/Snippets

• Wal-Mart’s new slogan – In September 2007, Wal-mart changed its slogan to “Save Money. Live Better.” Wal-Mart’s earlier slogan for 19 years was “Always Low Prices.”
• Benefits of shopping at Wal-Mart – According to a study by research firm Global Insight, Wal-Mart saves American families $2,500 each year. This figure rose from $2,329 in 2004 by 7.3 percent.
• Wal-Mart’s new slogan in 2011 : Wal-Mart’s latest tagline is “Low Prices. Every Day. On Everything.”
• Wal-Mart Online – Wal-Mart has 10,000 stores globally with annual revenues of more than $400 billion and 200 million weekly shoppers. According to Internet Retailer, it ranks six as in the largest Internet retailer list. Wal-Mart trails Amazon.com Inc, Staples Inc, Apple Inc, Dell Inc and Office Depot Inc. Wal-Mart does online business in United States, the UK, Canada and Brazil and does not reveal the percentage of online sales. Its digital technology unit called @WalmartLabs targets smartphones and social networking audience.

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Supply Chain Management at Wal-Mart – Case Solution

This case study tackles the supply chain management at Wal-Mart. It delves into the supply chain strategies of the company, which contributed to its success. It also looks into other possible rooms for improvement with regards to supply chain management that can impact the company positively to keep them ahead of the competition.

​Fraser P. Johnson Harvard Business Review ( 907D01-PDF-ENG ) November 28, 2006

Case questions answered:

• Describe Wal-Mart’s supply chain and how it integrates with other elements of its strategy.
• Discuss how Wal-Mart’s supply chain strategy metrics changed from 2000 to 2006 based on the company’s percentage of assets committed to inventory, inventory turnover, and weeks of supply.
• Compare the performance of Wal-Mart’s supply chain against its competitors in terms of the percentage of assets committed to inventory, inventory turnover, and weeks of supply.
• Based on the information provided in the case, what supply chain recommendations would you make to the CEO?

Not the questions you were looking for? Submit your own questions & get answers .

Supply Chain Management at Wal-Mart Case Answers

A) describe the supply chain management at wal-mart and how it integrates with other elements of its strategy..

The supply chain management at Wal-Mart is known in the retail industry as one of the greatest logistical and operational triumphs in the industry. The company employs more than 1.8 million associates worldwide.

It consistently continues to grow and operate successfully due to the supply chain the company’s founder, Sam Walton, instilled from the creation of this retail marvel.

Wal-Mart’s Strategy

Wal-Mart is an organization that is committed to a business model that drives costs out of the supply chains, which enables consumers to save money. Supply chain factors such as purchasing, location, and distribution proved to be big contributors to Walton’s wealth. Eliminating the middlemen, such as wholesalers and distributors, reduced administrative costs for Walton but also gave him power over those suppliers.

The integration of Walton’s transportation and distribution method served as a dual benefit to the company by keeping operating costs low with non-unionized and in-house drivers, but also by utilizing the transport to bring back unsold merchandise. With the stores being placed in low-rent suburban areas, the low prices seemed compelling and affordable to those in the area in which the stores served.

b) Discuss how Wal-Mart’s supply chain strategy metrics changed from 2000 to 2006 based on the company’s percentage of assets committed to inventory, inventory turnover, and weeks of supply.

Percentage of assets committed to inventory from 2000 to 2006:.

For seven years, from 2000 to 2006, the inventory assets ratio decreased over time. Hence, Wal-Mart’s inventory efficiency has increased over the past seven years.

This could be because of the reduction of excess inventory. The case notes that Wal-Mart aimed at eliminating $6 billion in excess inventory in 2006. Wal-Mart probably also had improvements in cash flows.

Inventory turnover from 2000 to 2006.

Figure 1: Inventory turnover at Wal-Mart.

For 7 years, from 2000 to 2006, Wal-Mart’s inventory turnover was consistent and showed steady growth from 6.31 in 2000 to 7.47 in 2006. This is an improvement of over 18%, which is the same as adding cash to the operating cash flow in 2006.

The inventory turnover for Wal-Mart was 7.39 per year in 2005 (=365 days/7.39 times per year), 49.39 days before the sale, and 7.47 times per year in 2006 (48.86 days).

Wal-Mart held inventory for an extra day in 2005 compared to 2006. So, money was tied up unnecessarily in inventory in 2005, hence decreased inventory turns.

The increased inventory turnover might be because of several factors. For one, the improved inventory control systems reduced the levels of inventory and the cost of storage and obsolescence. Also, there is a shift in the sales mix from 2005 toward fast-moving merchandise and grocery or other products that turn over more quickly.

Merchandise display is also one of the factors. Inventory is optimized when there is an effective store layout that offers ease of access to highly demanded products. The case states that Wal-Mart has a unique layout for each store.

Shelf spaces in different departments are divided and allocated to specific SKUs, hence, improving the ability of the customers to make purchases.

Weeks of supply from 2000 to 2006.

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Home > Learn More About Six Sigma Green Belt > Walmart Case Study: Lean Six Sigma Implementation in 2023 [Updated]

Walmart Case Study: Lean Six Sigma Implementation in 2023 [Updated]

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Table of Contents

Every business can make profits by increasing customer satisfaction and improving quality of their products.  Well, Six Sigma implementation can be used to help businesses to run better than ever before.

No matter what your business is, chances are that, six sigma can help. Six sigma implementation can be done in every department. It can be used in production, sales, marketing, design and administration and service. It will also help you to understand your customer’s needs better and more efficiently. It improves performance and delivery and will make great internal improvements.  

What is Six Sigma?

Six Sigma methodology means 3.4 defects for every one million opportunities. The objective of six sigma implementation is continuous process improvement and produce stable and predictable results. Six Sigma implementation requires the use of tools and techniques to define and evaluate each step of a process or project. It provides methods to improve efficiencies, quality of the process and increase the bottom-line profit.

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Six Sigma implementation helps to uplift the performance of manufacturing processes.  Six Sigma has a huge potential in improvising buyer satisfaction levels, generating repetitive customers, improving merchandiser performance, improving processes in purchase and inspection, packing and shipping to reduce rejections at later stages. Further, it helps in reducing the business risks.

History of Six Sigma?

Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer  Bill Smith  while working at Motorola in 1986  Jack Welch made it central to his business strategy at  General Electric in 1995. A six sigma implementation makes a process in which 99.99966% of all opportunities to produce some feature of a part are statistically expected to be free of defects.

The term  Six Sigma  (capitalized because it was written that way when registered as a Motorola trademark on December 28, 1993) originated from terminology associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a  sigma  rating indicating its yield or the percentage of defect-free products it creates—specifically, to within how many standard deviations of a normal distribution the fraction of defect-free outcomes corresponds. Motorola set a goal of “six sigma” for all of its manufacturing.

Features of Six Sigma

The features of Six Sigma are as follows:

• Customer oriented:  Six sigma implementation is customer oriented, work towards the requirements of the customer.
• Statistical quality control:  Six sigma is derived from the Greek Letter Sigma which is used for standard deviation in statistics. Standard deviation measures variance, which is an essential tool for measuring non-conformance.
• Methodology based:  Six Sigma is based on systematic approach of application in DMAIC and DMADV, used to improve the quality of process.
• Scientific based approach:  Six sigma uses techniques (statistical tools, DMAIC/DMADV methodologies) which are scientific based.
• Teamwork towards quality improvement:  Six Sigma implementation requires team efforts to control and improve quality of production.

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Benefits of Six Sigma

Six Sigma strategies help in

• improving the quality of the output of a process or project
• identifying and removing the causes of defects
• reducing process cycle time,
• reducing pollution,
• reducing costs
• increasing customer satisfaction
• increasing profits

Six sigma methodologies

Six sigma implementation allows organization to improve by designing and monitoring everyday activities of organization to minimize waste and resources while increasing customers’ satisfaction. There are two aspects of six sigma applied in processes for improvement.

DMAIC (Define, Measure, Analyze, Improve, Control)  

• Define the goals of the project or system or process.

Questions should be asked during this stage;

• Who is the customer?
• What is the current status?
• What will be the future status?
• What is the due date?
• What is scope of project?

Measure the existing system or process.

• Do we have adequate data on this current process or system?
• How will I measure progress?

Analyze the system to identify the root cause of the problem or situation.

• What is the current state of project or system?
• Who will make the changes?
• What all resources available?
• What are obstacles in completing the project?

Improve the system or process by using creative solutions.

• What are activities required to meet the goals?
• Do the changes bring the desired changes?

Control the improved system by implementing procedures, polices other management systems.

• How to control risk?
• How to control quality?
• How to control cost?
• How to control schedule?
• DMADV (Define, Measure, Analyze. Design, Verify)

This methodology of six sigma used to design new product design or process design to resolve the problem of a customer.

• Define the problem or goal that needs to be addressed.
• Measure and determine the customer’s needs.
• Analyze the processes that meet customer needs.
• Design a process that will meet customer needs.
• Verify design performance and ability to meet customer needs.

– Lean Manufacturing

Lean manufacturing is another tool for  quality control. Lean Manufacturing is a systematic method of eliminating waste by continuous improvement. There are various benefits of lean six sigma implementation like improve productivity and quality, reducing work in process (WIP) inventory, reduce cycle and lead time, reduce manpower, time and space, sustainability, employee satisfaction, and increase profit, Increase customer satisfaction and customer service. There are various lean manufacturing tools like 5S, Kanban, PCDA (Plan, Do, Check, Act) etc

It is the first step to implement lean manufacturing and tool of continuous improvement.it helps to keep workplace organize and clean.

Sort (eliminate that which is not needed)

Set In Order (organize remaining items)

Shine (clean and inspect work area)

Standardize (write standards for above)

Sustain (regularly apply the standards)

–  Kanban

It is a bottleneck analysis process which is the slowest among other garment manufacturing process which interfere in production. This analysis is crucial for sewing of apparels and finishing section.

–  PDCA

It is plan-do-check-act or plan-do-check-adjust. It is four step management method for quality controlling and continuous improvement.

There are various other techniques of lean manufacturing like root cause analysis, key performance indicators (KPI), etc.  

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• Six Sigma Green Belt Certification
• Six Sigma Black Belt Certification
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Walmart – A Case Study

Walmart as we know it today evolved from Sam Walton’s goals for great value and great customer service. “Mr. Sam,” as he was known, believed in leadership through service. This belief that true leadership depends on willing service was the principle on which Walmart was built, and drove the decisions the company has made for the past 50 years. So much of Walmart’s history is tied to the story of Sam Walton himself, and so much of our future will be rooted in Mr. Sam’s principles

Walmart boasts over 11,700 stores and serves about 270 million customers. Its business strategy is mainly based on “ being competitive in terms of assortment, differentiating with the way people access, leading in terms of price, and delivering an incredible experience with the motto of EDLP (Every Day Low Prices). ”

Historically, Walmart is known for its two main business keys:

• One-stop shopping
• Every Day Low Cost ( EDLC ) or Every Day Low Price ( EDLP )

The company primarily operates on a business model with 3 vital units:

• Walmart U.S. (making about 64% of its net sales)
• Walmart International (making about 24% of its net sales)
• Sam’s Club (making about 12% of its net sales)

Walmart U.S.

From the day it started and to until now, Walmart U.S. is one of its biggest segments, which successfully operates in all the fifty states across United States along with Puerto Rico & Washington D.C. The 2018 net sales contributed to about 64% from the U.S. alone.

Walmart International

Apart from the U.S., Walmart International operates in 27 different countries, which comprises 3 major categories:

• Retail, and

These three categories have multiple formats, which include:

• Supermarkets
• Supercenters
• Warehouse clubs
• Hypermarkets

Sam’s Club  

This is another important unit of Walmart, which consists of only membership-based warehouse clubs that operates across 44 states in the United States along with Puerto Rico and its e-commerce. It’s a crucial component in terms of operating income, as Sam’s Club generated about 12% of its net sales in 2018 .

History – The Road to Walmart

Let’s get into the history of walmart;

• 1914- The history of the U.S. retailer giant began with Sam Walton, who was born in Kingfisher, Oklahoma.
• 1945- Walton served in the military for a few years of his life. He finished this service and moved to Iowa and then Arkansas.
• 1945-1950- He gained retail experience, and this helped him to operate his variety store.
• 1950- He moved to Bentonville and opened “Walton’s 5&10”.
• 1962- Finally, on July 2 nd , he opened his first Walmart store in Arkansas.
• 1967- The family-owned business had spread out to a full-scale organization with 24 stores. They earned $12.7 million in sales.
• 1969- The company’s name was changed to Wal-Mart, Inc. on October 31st
• 1970- The name was changed again to Wal-Mart Stores, Inc. The company started trading stock as a publicly held company.
• 1972- The organization was listed on the New York Stock Exchange, and the price of the first share was $16.50/share.
• 1980- The family established the Walton Family Foundation as they reached $1 billion in annual sales. It was faster than any other company at that time, which showed that the business model of the company was soaring and working efficiently.
• 1983- The organization converted from cash registers to a computerized point-of-sale system, which enables effective and efficient checkout.
• 1987- The most crucial private satellite communication in the U.S. was installed. It linked all the operationsof the business model of Walmart through voice, data, and video communication.
• 1993- $1 billion sales week
• 1997- $100 billion sales year
• 2009- $400 billion annual sales in the year
• 1992- The founder of the company, Sam Walton, passed away.
• 2018- The organization is a worldwide retail giant and has its presence in many countries.

Business strategies of Walmart

Walmart has kept in mind very well 4p’s of marketing mix;

Pricing Strategy

• Wal-Mart does not offer overpriced products. They believe in offering lowest prices to attract customers and focus selling in bulk.
• Wal-Mart’s procurement strategies allow keeping their prices low.
• Use of universal barcoding creates an efficient supply chain and helps to the lower prices.

Walmart utilizes intensive distribution strategy;

• Door-to-door deliveries
• Walmart has a powerful e-commerce platform.
• An organized distribution centers
• High-end IT systems

Walmart offers wide range of products from furniture, groceries, appliances, hardware, health goods, beauty products, wellness, sports to entertainment.

It is composed of sales promotions, advertisements, public relations, and personal selling.

• Walmart advertises on websites and newspapers.
• Sales promotions through discounts and special deals.
• Personal selling, on the other hand, happens directly at its stores, where the sales persons persuade the buyers to try package deals or new products.

Walmart store uses popular slogans, which are connected to low prices. A few examples include “save money, live better,” “the lowest price store,” “everyday low price,” etc. It applies the strategy of “diversified advertising media” to promote. This includes from social media, billboards to TV ads and websites

Walmart Supply Chain practices

Walmart is in the large supply chain and logistics industry. Walmart have invested in the latest technology solutions to ensure to offer their customers the lowest prices products.

Walmart has increased efficiency by decreasing the number of links in its supply chain

Walmart’s supply chain is much optimized as it has innovated its supply chain by reducing the number of complex links in the supply chain. They started procuring products directly in bulk from the manufacturers and transferring it to stores and kept no further link in between. Thus Walmart is successful in meeting customer orders on time. This innovation has helped Walmart in achieving success at a fast rate by keeping distribution cost at an exceptionally low rate. Reducing the number of links has helped in making the products reach customers on time, in perfect form and quality (reducing the impact of the environment on the products). This is an example of successful Six Sigma implementation.

Reliable inputs and strategic supplier partnership

Walmart has always strategically maintained partnership and relationship with trustworthy suppliers who can supply products as and when the demand arises. They have maintained long term relationship with the vendors and promised them to purchase large amount of products from them in return of low prices for their products. In this way Walmart ensured reliable inputs and they can meet the demand of the customers despite slight fluctuations in demand forecasting. Walmart’s vendor management is long-lasting because there is a win-win situation which ensures both the supplier and the buyer benefits. Regular communication and on-time sharing of information with their vendors is a major key to success of Walmart. Walmart has collaborated successfully with its suppliers over years and ensured demand fulfilment timely.

Cross-docking “a great strategic decision”

Keeping the low cost of operations helps Walmart in keeping the cost of products low and its benefits for the customers as they have to pay low prices for everyday products. Cross-docking helps Walmart in keeping fewer inventories in stock and spending less cost on warehousing. Directly transferring goods from inbound or outbound trucks or rails and loading them into incoming truck rails and sending them to the stores, eliminating the need for warehousing. This decision leads to bringing down transportation cost, timing, warehousing cost, excess inventory and increases efficiency of the supply chain and inventory management.

Technology innovation

Walmart reached its pinnacle of success by constantly innovating its operations and mechanisms of performing day to day activities. Technology is used by Walmart to predict accurate demand rate of consumers, efficient customer relationship management, keeping a track of the flow of goods along the supply chain, predicting inventory level and correcting and minimizing its errors. Walmart has strategically implemented technology in everyday operations and inventory management. This helps to cut down operating expenses and increase its profit over years. The main technologies used by Walmart to maintain its supply chain management cost effectively are as follows:

Use of Universal Product Code: It brought about a massive change in retail Chain Corporation. These barcodes help to collect and interpret the store level information immediately. This helped in conducting proper operations of business. This helps in keeping track of inventory in the store and process customer demands as well. It added value to Walmart because now the need for manual data entry is eliminated.

Retail Link: helped Walmart to connect the demand forecasting analysts to the vendor network as well to the center of Walmart’s distribution sites. This is extremely helpful to all the producers and vendors to accurately forecast the consumer’s demand pattern according to historical data which are already and accurately perform the order fulfilment activities via the satellite network.

RFID (Radio Frequency Identification Tags): After the recent developments that took place in the field of technology, Walmart adopted the use of RFID. Now both the vendors and Walmart can supervise inventory management. This has facilitated the tracking of the flow of goods along the supply chain from distance very easy. It is better than the Bar Codes as it is capable of storing more data than it.

RFID and smart tags make the operations of Walmart very efficient as timely transfer of information about the stocks in the store track is done and it ensures that none of shelves will be empty and products are provided to customers as and when needed by them. Because of it none of the products go out of stock in any store of Walmart. This helps in bringing down the bullwhip effect and moreover it does not incur the cost of excess inventory. There has been a reduction (Jhanwar Vaishnavi, et al., 2019) International Journal of Advance Research, Ideas and Innovations in Technology.

Walmart Distribution Centers

Walmart boasts more than 150 distribution centers and is the main hubs of its business. Its distribution operation is world’s one of the most prominent activities, servicing clubs, direct deliveries, and stores to the customers.

Its transportation alone has an incredible fleet of 61,000 trailers, 7,800+ drivers, and 6,100 tractors.

• Walmart’s distribution network ships dry groceries, general merchandise, and perishable groceries with other categories to its consumers on a daily basis.
• It has six disaster distribution centers, located strategically across the country. Each is stocked with adequate products to provide immediate response to the struggling communities during a natural disaster.
• Every distribution center measures over 1 million sq.ft and has more than 600 personnel unloading as well as shipping on 200+ trailers on a daily basis.
• Each distribution center is built across a radius of 150 or more miles and can hold 90 — 100 stores in it.

Why are they so successful?

Walmart is successful due to:

• Collaboration way of working

Walmart was the first company to introduce Universal Product Code for barcodes where store level information was then collected and analysed to help improve operations. Further, Walmart created their database, through which they were able to see real-time sales data from cash registers straight to their distribution centres. Walmart adopted the collaborative approach of sharing information with stores, distributions centres and suppliers. It helped the organizations to improve forecasting, managing inventory and marketing of their products.

• Innovative way of working

As there are lot of competitors in the market, therefore,  Walmart has to work in an innovative ways. Walmart has some tough competition, with retailers such as Amazon touting low prices and fast delivery, they had to figure out a way of competing with an essentially seamless customer experience.

Earlier this year, Walmart expanded its click and collect service to 30 new markets and it’s pickup service to 60 US markets at 400 locations. Walmart is constantly seeking out new ways of driving new revenue, and they adjust their supply chain accordingly.

It’s fair to say that Walmart doesn’t take its competition lying down, and although it has a lot to learn in the eCommerce space, it’s going in the necessary direction to drive growth in this area. 

Walmart has used distribution channels to supply their goods to the stores which reduces time and cost of transportation. Six Sigma implementation minimizes unnecessary activities and Just-in-time (JIT) means meeting the demand at the correct time. Six sigma is important for continuous improvement of the product/ services. Use of technology in supply chain reduces labour cost, increase value creation and long sustainability.

• Jhanwar Vaishnavi, et al., 2019, Influence of supply chain management on operational efficiency with an example of Walmart’s supply chain, International Journal of Advance Research, Ideas and Innovations in Technology ISSN: 2454-132X Impact factor: 4.295 (Volume 5, Issue 4)

1. What are various lean manufacturing tools?

There are various lean manufacturing tools like 5S, Kanban, PCDA (Plan, Do, Check, Act) etc

2. What are various benefits of Six Sigma?

Six Sigma strategies help in -improving the quality of the output of a process or project -identifying and removing the causes of defects -reducing process cycle time, -reducing pollution, -reducing costs -increasing customer satisfaction -increasing profits  

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10 comments.

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Walmart Case Study | Best Case Study Topics

Did you know that Walmart is the world’s largest company by revenue? Walmart Inc. makes nearly a trillion dollars annually and has 2.3 million employees. And what makes Walmart even more remarkable is that it is the world’s biggest family-owned business! Below are a lot of helpful business lessons a student can take away from doing the Walmart case study.

• 🍭 Walmart Facts

💡 Walmart Case Study – Topic Ideas

• 🤓 Strategic Management
• 🌐 Global Challenges
• 🚚 Supply Chain Management
• 🏋️‍♂️ Walmart Competitive Advantage
• 🛍️ Walmart Vs. Amazon
• 🧸 Walmart Gender Discrimination
• 💸 Walmart Bribery
• ⏳ Crisis Management
• 👍 45 Walmart Case Study Examples
• 🔗 References

🍭5 Unknown Facts about Walmart

• Sam Walton founded the retail giant Walmart. He opened the first store in Rogers, Arkansas, in 1962. By 1967, the family owned 24 stores with $12.7 million in sales.
• Walmart’s yellow logo is often mistaken for a flower. However, it symbolizes the spark of Sam Walton’s inspiration that helped him open the first store.
• 90% of the population in the United States lives less than 10 miles from a Walmart store . It’s almost impossible to avoid shopping at Walmart!
• Walmart actively uses robots at 350 stores to wash floors, check shelf stock, and scan for price errors.
• There is even a Walmart Museum in Arkansas. It is located in the historical building, the first store Sam Walton opened. Check out business essays about Walmart to learn more about the company!

Various factors contribute to Walmart’s business performance. When doing a Walmart case study, you can choose the sphere that interests you the most. Here’s the list of possible topic ideas.

• The history of Walmart company.
• Influence on the U.S. market.
• Corporate values and vision.
• Financial performance over the years.
• Operating divisions and departments.
• International expansion.
• Walmart’s bestselling products and brands.
• Supply chain.
• Marketing strategies and e-commerce.
• Sustainability and CSR policy.
• Environmental initiatives.
• Employment and internships at Walmart.
• Walmart’s strategic management .
• Key competitors in the retail market.
• Criticism and controversies around Walmart.

🤓 Walmart Case Study Strategic Management

• Walmart’s design of goods and services Walmart’s consumer goods are designed to be easy to mass-produce and cheap. However, the company owns some more expensive brands, like Great Value and Sam’s Choice. Walmart actively uses recycled materials in its product designs to reduce its carbon footprint.
• Walmart’s quality management Since Walmart is a giant corporation with numerous individual stores, providing quality control is difficult. In 2010, the company decided to join the Global Food Safety Initiative . Today Walmart’s food suppliers undergo factory checks, including the production of meat, fish, and ready-to-eat meals.
• Walmart’s location strategy Walmart aims to maximize accessibility for consumers by building new stores near urban centers and the most populated areas. According to statistics, 95% of U.S. shoppers nowadays spend money at Walmart.

🌐 Walmart Global Challenges

• Walmart’s success in international markets Its unique business model and market entrance strategies are essential to Walmart’s success in international markets. For example, Walmart promotes the “ Everyday Low Prices” program , attracting new customers in the U.S. and other countries.
• Walmart’s international challenges The biggest challenge for Walmart’s managers is to understand their local customers’ needs in every country they serve. India and China are excellent examples of this challenge. Large stores are expensive in these countries, and people prefer smaller neighborhood stores. Walmart has to convince potential customers that they can provide fresh and quality products at low prices.

🚚 Walmart Supply Chain Management Case Study

• An overview of Walmart’s supply chain Overall, Walmart operates in more than 11,700 stores under 59 company brands in 28 countries worldwide. Having effective supply chain management is essential for such an influential company. Luckily, Walmart has become the perfect example of successful supply chain management transitioning from a regional retailer to a global one.
• Fewer links in Walmart’s supply chain Walmart’s supply chain innovation began when the company removed a few of the chain’s links. In the 1980s, Walmart decided to work directly with the manufacturers to cut costs. The company’s supply chain has only become more effective since then.
• An inventory innovation at Walmart Walmart has always found products at the best price from suppliers who can meet the company’s demand. Walmart establishes strategic partnerships with most of its vendors, offering them long-term and high-volume purchases for the lowest possible prices.

🏋️‍♂️ Walmart Competitive Advantage Case Study

• Electronics,
• Walmart’s cost leadership Walmart’s key competitive advantage is that it offers low prices. The company’s slogan says, “Always low prices, always Walmart.” However, Walmart ensures that its low prices will always be backed by quality and a wide selection of recognizable brands.
• The power of Walmart’s customer service Walmart has one of the retail sector’s most favorable customer service policies. The company allows customers to return the goods up to 90 days after the purchase, even without the receipt.

🛍️ Walmart Vs. Amazon Case Study

• Walmart vs. Amazon: financial performance At the end of 2020, Walmart had a revenue of $559 billion, with more than 2.3 million employees working for the company. When it comes to Amazon, the overall income was $386 billion, with around 1.3 million employees worldwide. Even though Walmart maintains economic leadership, Amazon is rapidly developing and might surpass Walmart in 2022.
• Walmart vs. Amazon: focus on customers Both Amazon and Walmart work hard to improve their customers’ experience. However, they differ in some approaches, resulting from Amazon focusing on e-commerce and Walmart enhancing customers’ shopping experience in stores.
• Walmart vs. Amazon: technology Walmart and Amazon are known for using innovative technology in the retail sphere. For example, in Boston, Amazon has the Amazon Robotics department, where robots are built to enhance customer experience. At the same time, Walmart has a unique technology for online order fulfillment. Walmart’s Alphabot chooses, packs, and transports online grocery items according to customers’ preferences.

🧸 Walmart Gender Discrimination Case Study

• The lawsuit against Walmart In February 2022, the Equal Employment Opportunity Commission (EEOC) introduced a lawsuit against a Walmart store in Iowa . The lawsuit states that Walmart had violated federal law by providing a Black female employee an unsanitary place to breastfeed her child because of her race and gender.
• The statement from Walmart Walmart’s representatives insist that the company does not tolerate discrimination. Moreover, diversity and inclusion have always been vital corporate values for Walmart. The company announced that it is ready to investigate the case matter and will address all the claims in court.
• A lesson to learn from the Walmart discrimination case. To avoid the harmful effects of gender discrimination in the future, Walmart needs to have women present at all levels of management. Workplace rules and norms can only be established by someone who can relate to female employees’ problems and needs.

💸 Walmart Bribery Case Study

• An overview of the Walmart bribery case Walmart has been profiting from international expansion for many years. However, it was claimed that the company hadn’t taken the necessary steps to avoid corruption. In 2020, the Justice Department said that Walmart’s subsidiaries in Mexico, India, Brazil, and China had paid government officials to obtain store licenses.
• Walmart’s response to the accusation The retailer’s chief executive of Walmart promised to enhance the company’s policies, procedures, and systems that control ethics and compliance. Walmart also stated that it had spent over $900 million on related matters, including investigations and its global compliance program.
• Walmart’s financial losses Walmart was charged to pay more than $144 million to settle the charges by the Securities and Exchange Commission and around $138 million to resolve the charges by the U.S. Department of Justice.

⏳ Walmart Crisis Management

• Walmart’s disaster preparedness & response strategy Walmart’s disaster preparedness strategy is a part of the company’s Global Security program. This program protects the company’s employees, facilities, information, and inventory. A team of Walmart’s emergency management experts is responsible for the prevention and recovery efforts.
• Walmart’s crisis management during the Covid-19 Walmart didn’t have to close when Coronavirus hit, being a major essential retailer. The company even benefited from the customers stocking in stores and buying goods online. To ensure the stores operate safely, Walmart provided the employees with all the protective measures and paid sick leaves.
• Walmart’s crisis management for “Fat Girl Costumes” In 2014, Walmart reached out to the plus-size market by offering online shoppers a section of “Fat Girl Costumes.” Many Twitter users found it offensive and asked Walmart for a public apology. Walmart removed the category in less than 5 hours and apologized on Twitter.

👍 Walmart Case Study – 45 Best Examples

• Wal-Mart: sustainable competitive advantage. This essay talks about the factors contributing to Walmart’s market sustainability.
• Performance analysis of Wal-Mart. This writing compares Walmart’s financial performance over the years and suggests ways to improve it.
• Wal-Mart product design and decision making. This study investigates how technology advancements benefit Walmart’s product design and sales.
• Walmart company’s productivity project management. This essay analyses the tools Walmart implies to increase its employees’ productivity.
• Walmart and Amazon companies’ financial analysis. This paper compares the two retail giants by analyzing their financial performance.
• An employee motivation program for Walmart. This essay suggests an innovative motivational approach to attract new talents to work at Walmart.
• Financial analysis of Walmart. This paper examines how Walmart’s pricing strategy contributes to the enterprise’s success.
• Walmart supply chain case study. This case study focuses on the challenges Walmart faces while trying to manage its supply chain.
• Walmart: commercials’ role in affirming a significant brand. This essay analyzes the two advertisements to understand the commercials’ role in affirming Walmart’s position as a significant brand.
• Bribery at Wal-Mart in Mexico. This study undercovers Walmart’s chain of unlawful activities in Mexico that violated the foreign corrupt practices act.
• Wal-mart: company background, history, and strategies. This study looks at Walmart’s development since 1962 when Sam Walton opened the first store.
• Wal-Mart Incorporation’s low-price attraction. This paper evaluates Walmart’s strategies to deliver quality products to the customers and maintain its low-price strategy.
• Wal-Mart: marketing services analysis. This essay suggests ways to develop Walmart’s people management strategies to extend the service marketing success to the customers.
• Wal-Mart: strategic management. This paper seeks to look into Walmart’s planned expansion and the opportunities presented by the Asian and Europe markets.
• Wal-Mart: organizational behavior concepts. This paper investigates the key features of Walmart’s organizational culture and how it influences the company’s performance.
• Digital transformation of Walmart. This essay looks into how Walmart has overcome marketing challenges in the digital era.
• Walmart supply chain management. This paper evaluates the sustainability and supplier relationship management used by Walmart.
• Walmart Inc: marketing research for consumer perception. This paper analyzes Walmart and its key competitors and their brand images.
• Walmart company’s global leadership strategies. This essay investigates the reasons behind Walmart’s failure in Germany.
• Walmart company’s organizational culture. This paper analyzes the leadership style of Walmart’s managers and how it influences the company’s performance.
• Business ethics: is Wal-Mart good or bad? This paper analyzes Walmart from three perspectives: employees, stakeholders, and customers.
• Wal-Mart: company analysis and strategy recommendation. This case study reveals the future trends of the supermarket industry and what Walmart can do to adapt to them.
• Wal-Mart company’s impact on stakeholders. This paper explores the bittersweet relationship between Walmart and its stakeholders.
• McDonald’s vs. Wal-Mart’s strategic choices. This essay compares the strategic decisions that allowed the two companies to become leaders in their industries.
• Wal-Mart after entry into the Chinese market. This case study discusses why the Chinese market was unfavorable for Walmart’s stores.
• Walmart company’s transportation and supply chain management. This case study challenges the effectiveness of Walmart’s supply chain management.
• Walmart company’s human resource strategies. This paper explores the human resource environment at Walmart.
• Walmart corporation’s strategic planning. This paper suggests a strategic plan for Walmart to improve its growth and performance in five to ten years.
• Walmart Inc.’s supply chain evaluation in China. This case study indicates the significant issues of Walmart’s supply chain in China and what the company needs to do to address them.
• Walmart company’s global strategy and international business. This paper provides a detailed analysis of Wal-Mart’s international business and looks at some company-established approaches.
• Wal-Mart’s and Tesco’s monopolies in the retail industry. This essay investigates how Walmart and Tesco influence the nature of the retail market and structure.
• Wal-Mart and environmental pressures. This study analyzes how modern organizational and environmental pressures make Walmart change and evolve.
• Wal-Mart: issues in management. This essay focuses on the main challenges of international expansion Walmart’s management deals with.
• The company Wal-Mart: an overview. This paper studies the factors that contribute to Walmart’s extraordinary growth.
• Wal-Mart company’s operations management. This paper focuses on the issue of empty shelves that faced the operations management function at Walmart during the Coronavirus.
• Wal-Mart’s low-cost provider strategy. This study explores Walmart’s low-cost provider strategy and its advantages.
• Wal-Mart’s retail strategy plan in Canada. This paper analyzes how the Canadian cultural environment determines Walmart’s performance.
• The Wal-Mart supermarket’s mission and vision. This study explores how Walmart’s business vision helps build a sustainable business.
• Walmart company’s marketing analytics. This paper analyzes marketing strategies used by Wal-Mart and determines the level to which it applies marketing analytics.
• Walmart and Apple companies: non-financial rewards. This study explores how Walmart and Apple use programs to recognize the achievements of their employees.
• Walmart company’s strategic goals. This report focuses on strategic goals set by Walmart and the ways the company implements the strategy for achieving these goals.
• Walmart company change management. This paper evaluates and identifies the issues that Walmart’s change management should address.
• Walmart’s ethical challenges and discrimination. This essay analyses Walmart’s strategy for dealing with criticism from the public, employees, and competitors.
• Walmart company’s marketing plan and strategy. This case study suggests how Walmart can improve its online marketing strategy.
• Marketing strategy used during COVID-19 . This case study indicates the advantages and disadvantages of Walmart’s marketing strategy during the pandemic.

🔗References

• Product Supply Chain Sustainability
• Amazon vs. Walmart: The Battle Of Retail Kings Gets Hot | Investors Business Daily
• Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act Case | OPA | Department of Justice
• Microsoft And Walmart Are Among The New Members Of Crisis Management Hall Of Fame
• Walmart lawsuit (re gender discrimination in USA) – Business & Human Rights Resource Centre

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Walmart Case Study On Supply Chain Management

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Walmart: Supply Chain Management

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About this product.

This operations management case study focuses on the supply chain strategy of Walmart. Set in 2019, it provides a detailed description of the company’s supply chain network and capabilities. Data in the case allows students to compare Walmart’s source of competitiveness with those of other retailers—both online including Amazon and traditional brick–and-mortar retailers, such as Target—to develop insights into the management of a large, complex, global supply chain network. As competition between Walmart and its online and offline competitors heated up, a key challenge for the company’s president and chief executive officer was deciding what changes made to Walmart’s expanding supply chain would best support its strategic objectives. What supply chain capabilities would Walmart need as its business model continued to evolve?

Learning Objectives

This Walmart Supply Chain Management case study can be used in an undergraduate or MBA course in:

• Supply chain management
• Operations management
• Business strategy
• International business

It can provide an introduction to supply chain management using a company with which most students are familiar. In doing so, it allows students to learn how Walmart has built up its supply chain capabilities over the past five decades, and how the company leveraged these capabilities to become the world’s largest retailer. Combining the Walmart case with the Amazon.com: Supply Chain Management case in back-to-back classes provides a powerful illustration of the differences between two leading companies and demonstrates the importance of alignment of supply chain competencies with organizational strategy.

After Completion of This Case Students Will Be Able To:

• Assess Walmart’s supply chain and identify its key competitive advantages.
• Quantify Walmart’s ability to generate value from its supply chain.
• Identify potential opportunities and challenges for Walmart to improve its supply chain.
• Analyze the effects of the opportunities and challenges facing Walmart on its growth and evolution.
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