Walmart Leverages Global Supply Chain Strategies for Global Reach Essay Example

Paper Type:  Essay
Pages:  2
Wordcount:  448 Words
Date:  2023-11-06

With globalization, free trade agreements and various forms of market liberalizations have occurred. Due to this increased interaction of economies, Walmart Inc. has leveraged various suitable supply chain management strategies to meet the needs of its ubiquitous subsidiaries globally (Kot, 2007). Global supply chain networks of rail, road, maritime and air transport have been established to link markets. These means of transportation have become less costly and more interlinked to facilitate seamless supplies. The maritime and rail still account for the largest share of trans-continental supplies due to their ability to carry a large volume of the consignment at lesser costs. They two are further complemented by trucking and air, which hold relatively low supply volumes and are comparatively expensive (Sonia, 2018). Walmart Inc has greatly exploited these dynamics in the supply chain to remain one of the best performing merchandises globally. The company further complements the four modes of transportation and information technologies which allows end to end monitoring of freight.

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Today, progress in information technology allows traders in the international market to maintain low inventory levels which effectively result in cost reductions. Instead of maintaining a big stock, traders make periodic orders on a need basis with a guarantee of prompt supply (Frankel, 2000). This process is facilitated by electronic data interchange (EDI), which is a critical component of freight management services (Kot, 2007). Such an elaborate information system supports tracking of consignments, proof of delivery and delivery reporting. Through computerized tracking and barcoding, global supply chain management has further undergone a great transformation which not only improves reliability but also contributes to cost minimization for all parties involved.


Through EDI, suppliers and manufacturers have a sustainable link with the transporter, which then improves delivery schedules. The EDI further combined with Vendor Managed Inventory (VMI) in which the respective manufacturers remain responsible for their goods at the warehouse have not only improved efficiency but also increased the level of engagement between Walmart Inc. and other participating entities (Walmart Inc., 2020). Walmart has also leveraged EDI to support its cross-docking logistics practice. In this, there is an efficient replenishment of inventory through the avoiding extra storage on transit by direct transfer of products from inbound or outbound truck trailers.


Frankel, J. A. (2000). Globalization of the Economy (No. w7858). National Bureau of Economic Research. DOI: 10.3386/w7858.

Kot, S. (2007). Transportation process in the global supply chain. Adv Logist Syst, 1(1), 15-20. Inc. (2020). Retrieved 7 August 2020, from

Sonia Lai Jie Yin (2018 October, 13). Key Success Factors for Effective Logistics Practices - SIPMM | Singapore Institute of Purchasing and Materials Management. Retrieved 7 August 2020, from

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Walmart Leverages Global Supply Chain Strategies for Global Reach Essay Example. (2023, Nov 06). Retrieved from

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