This website uses cookies to ensure you have the best experience. Learn more

The Impact Of Supply Chain In Businesses And Consumers

1252 words - 6 pages

Supply Chain
Organizations of all types are in business to provide products and services to consumers. The process in which this takes places is not as simple as some may believe. From obtaining materials to stocking products on shelves many details need to be covered. A supply chain assists organizations in coordinating the activities needed to ensure a successful sale or service. To better understand what a supply chain is and how it impacts businesses and consumers one must be able to define, establish, and maintain the process of a supply chain. This paper will uncover the meaning of a supply chain and evaluate a well-known business’s supply chain and its impact on the different ...view middle of the document...

• The Information flow includes order information and delivery status.
• The Financial flow includes payment schedules, credit terms, and additional arrangements.
Many major organizations rely on a structured, organized supply chain with a strategy designed to meet consumer needs and increase profits or return on investments (ROI). Wal-Mart is the largest retail organization in the world, which did not happen by luck but rather through a well-structured supply chain that allowed the organization to balance and take advantage of supply and demand.

Wal-Mart

During the financial year 2001-02, Wal-Mart was ranked first in the global Fortune 500 list with revenues of $219.81 billion (Chandran, 2003). Wal-Mart’s competitors at the time consisted of Sears Roebuck, K-Mart, JC Penney, and Nordstrom, which none of them could truly compete with the range of products, prices, and services offered by Wal-Mart. The company’s founder Sam Walton was driven to improve sales, reduce costs, and establish efficient distribution, logistics management systems, and information technology (IT) tools. As stated by Captain Vernon L Beatty, aide-de-camp to the commander, Defense Supply Center, Columbus, Ohio (Chandran, 2003), “Supply chain management is moving the right items to the right customer at the right time by the most efficient means. No one does that better than Wal-Mart.” However, the organization did not become a success overnight. Since 1969 the renowned retail store has paved the way by making bolding decisions unlike that of its competitors. The business offered low process, customer satisfaction guaranteed, and hours to fit customer needs.
Wal-Mart is a one-stop shop for many customers offering products from groceries, electronics, clothing, jewelry, furniture, and pharmacy and automotive services. In the 1990s Wal-Mart became a global company with locations in Canada, Mexico, Germany, Brazil, and Korea.

Supply Chain Process

The organization’s main focus was on reducing its purchasing costs so lower costs could be offered to customers. Wal-Mart procured goods directly from manufacturers without using any intermediaries. In order to increase their success in negotiating prices, Wal-Mart spent a large amount of time meeting and talking with vendors to better understand their cost structure. If the vendor was able to meet the expectations of the business, Wal-Mart began establishing a long-term relationship with them based on a high level of trust. Typically, Wal-Mart preferred to do business with local and regional vendors and suppliers, as they were more eager to negotiate deals and transportation of goods was less costly.

Upon purchasing products from vendors the items needed to be stored and ready for stocking and shipping. According to Chandran (2003), “In 1998, Wal-Mart had over 40 distribution centers located at different...

Other Papers Like The Impact of Supply Chain in Businesses and Consumers

Supply Chain in Oil and Gas

4244 words - 17 pages Troy Rock Florida Institute of Technology Research Paper Supply Chain Process in the Oil and Gas Industry. MGT 5069 June 18, 2016 Introduction The definition of supply chain management, it is described as being the set of processes in a firm that are implemented to maximum customer satisfaction while operating at a lowest cost possible to achieve maximum profits. In the oil and gas industry supply-chain, the profitability of a

The Case of the Rewired Supply Chain

835 words - 4 pages The Case of the Rewired Supply Chain CASE TOOL FOR ASSESSMENT OF PROGRAM OUTCOMES 2 and 3 The Case of the Rewired Supply Chain ORUN is a 4th generation family owned company with a corporate headquarters and 4 plants located in three states, each of which manufactures nearly identical product lines. They are considered a leader in the development, design, manufacture, marketing, and distribution of metal cabling and related products used

Planing and Controlling the Supply Chain

1340 words - 6 pages Planning and Controlling the Supply Chain ISCOM 471 December 24, 2012 Planning and Controlling the Supply Chain Within the many different organizations in todays business world there are some key factors that will establish the profitability, growth, and longevity of a company. Some of the things we will discuss will be that of how my chosen corporation American Express applies some of the forecasting techniques to better develop the

Supply Chain and Rfid

1851 words - 8 pages INTRODUCTION In this age of rapidly changing business environment, many organisations and business houses faces a constant pressure to continuously adapt and redefine their business process. One of the key processes in doing business whether big or small ranging from small grocery store to a big retail chain is the supply chain process. With the increase in exposure of the companies to the global environment, liberal trade policies, business

Distribution And Chain Supply

742 words - 3 pages procedures with one built on BizTalk Server 2000. (www.Microsoft.com) An American pharmacist by the name of John S. Pemberton was looking for a new product to combat fatigue, weakness, and headaches. He studied and experimented, fiddled and mixed. In 1896, he found the solution and the first coca-cola concentrate was born. Just as creativity was behind Coca-Cola's initial success, the business has remained a leader in innovation to the

The Right Supply Chain

1056 words - 5 pages The first step in devising an effective supply chain is to consider the nature of demand for your product. For this many aspects are important: Product life cycle, demand predictability, product variety etc. But any product can be broadly classified into as either a Functional Product or an Innovative Product based on their demand patterns. Root cause for ineffectiveness of any supply chain is the mismatch between the type of product and

Supply Chain of Samsung

2940 words - 12 pages become the worldÂ’ top innovative company in technology. It starts to provide consumers with innovative and cutting edge products and rapidly become a huge player in electronics field competing toe to toe with another magnate Sony. Samsung launched an industry design revolution in order to get rid of its image of imitator. It employed world top designers to expand their thought and keep track on the world highest level. It achieved most of the

The Information Flows and Supporting Technology in the Automotive Supply Chain: a Suppliers Focus”

2135 words - 9 pages The Information Flows and Supporting Technology in the Automotive Supply Chain: A Suppliers Focus” DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Dept.of Commerce Prof. & Hod of Commerce Department Govt. T.R.S.College, Rewa

Supply Chain Practices in Retail Industry - a Comparative Study Between Emerging East and the Developed West

842 words - 4 pages concerns for using RFID since it may invade the privacy of consumers Prof. Shailendrakumar Uttamrao Kale “Global Competitiveness: Role of Supply chain Management” The paper talks about the business which is happening in recent times which is more global and standardized in India. It talks about factors that contribute to such a global business environment. The major factor that has resulted in this globalization is the fact that businesses today

The Impact Of Fast Food Advertisements On Consumers’ Buying Behavior

3323 words - 14 pages The Impact of Fast Food Advertisements on Consumers’ Buying Behavior Syafiqah Abstract Media are the most powerful tool of communication to advertise products and services of companies. Thus, types of media used are important in order to determine the effectiveness of advertisements. The aim of the present study is to examine the impact of fast food advertisements on consumers’ buying behavior. There are two main objectives of the paper

Critical and Creative Thinking in Operations and Supply Chain Management

1539 words - 7 pages Yashashree Kulkarni Operations & Supply chain Mgmt Date; June 21 Critical and Creative Thinking in Operations And Supply Chain Management The reality of the 21st century is the presence of the VUCA environment that is , volatile, uncertain, complex and ambiguous. This highly dynamic business world, requires the business leaders to think both critically & creatively in order to be successful in their area of expertise. Leaders are expected to

Related Essays

Customer Facing Supply Chain Practices The Impact Of Demand And Distribution Management On Supply Chain Success

1416 words - 6 pages other SCM practices (e.g., purchasing or manufacturing management), which certainly impact the supply chain performance, but are not included in our model,” (p274). As mirrored in Table 4 (see page 276 of the article), the authors were able to conclude that seven of their ten hypotheses were confirmed by the data, (p274). H2, H4, H5 and H8 were all significant at the .01 level, H6 and H9 were significant at the .05 level, and H3 was

Tianjin Explosion's Impact On Supply Chain Management

1082 words - 5 pages . All in all, all world felt and has still feeling the effects of Tianjin explosion. Many importers and exporters who ship goods through the port of Tianjin felt extreme negative effects on their businesses. However, worse than negative impact on companies’ supply chain is the fact that so many lives were gone. In extreme cases like Tianjin explosion, a single event at one location can severely damage companies. That is why companies must

Supply Chain Role In The Oil And Gas Industry

4244 words - 17 pages Troy Rock Florida Institute of Technology Research Paper Supply Chain Process in the Oil and Gas Industry. MGT 5069 June 18, 2016 Introduction The definition of supply chain management, it is described as being the set of processes in a firm that are implemented to maximum customer satisfaction while operating at a lowest cost possible to achieve maximum profits. In the oil and gas industry supply-chain, the profitability of a

The Marketing And Supply Chain Change In E Commerce

2973 words - 12 pages changes in terms of Supply Chain Management in Fashion industry. |7-9 | |2.1 Definition and the importance of Supply Chain Management |7 | |2.2 Recent changes in Supply Chain Management in retailers under the impact of online business booms |8-9 | |2.3 Identify the advantages and disadvantages of the changes