Wal-Mart operational management system and strategy Research Paper

Wal-Mart operational management system and strategy - Research Paper ExampleThe paper tells that Wal-Mart currently maintains 120 distributions centers that service its 7,000 international stores. Wal-Marts investment in providing decentralized distribution networks provides the business with greater efficiency in terms of meeting delivery timelines and the ability to provide a much diverse assortment of domestic and international products. In terms of distribution, volume alone provides Wal-Mart with significant competitive advantage related to stock replenishment and strategical procurement opportunities. Wal-Marts main competitors, both domestic and international, include the discount retailers K-Mart, Target, Sears, Marks & Spencer, Macys and Zara. In the United States, Wal-Mart continues to outperform major competitors K-Mart and Sears due to its more efficient supply chain infrastructure. Sears is forced to put higher prices on its merchandise as Sears maintains higher overh ead costs due to its centralized and alternatively limited distribution network. K-Mart is losing customer appeal due to its rather notorious neglect of the store sales environment and growing poor customer service. Wal-Mart, on the other hand, continues to devote considerable labor and financial investment into improving the aesthetics of its sales environments, backed by the significant capital and credit rightness of this firm which rests on both domestic and foreign cash flow. Wal-Mart has in addition experienced significant efficiencies in its supply chain network by consolidating international procurement. In the 1990s, Wal-Mart maintained a variety of domestic and international procurement operations bases that contributed to high payroll investment. This decentralized global procurement system also limited its ability to create a streamlined procurement model while it focused on purchasing that was geographically-near its international customers. Today, however,