A whole production of an organisation depends on the supply chain. Supply chain starts from raw materials from the supplier to manufacturing to packaging to warehouse to distribution to final service to its consumers. Therefore, there are lots of components related to the supply chain in a large company. Let’s talk about the global leader in the retail market, Wal-Mart which helps us to analyse parts of the supply chain. We all know that Wal-Mart is doing constant development through developing its product portfolio and services. Wal-Mart’s supply chain is very much effective which increases their effectiveness in the industry. Let’s have an in-depth discussion about Wal-Mart’s supply chain’s components. As we know the supply chain is a network used in business to retain accurate information flow in the organisation. In this network, first comes production which is the essential component. By customer needs, capacity, quality, demand from the market, the volume of goods, Wal-Mart does its production. Different problems sometimes can happen in the production of Wal-Mart includes a change in the preference and taste of customer, changes in taste, low quality of raw materials and the introduction of new technology. All these problems can be tackled if they do a regular survey and take feedbacks from customers that in turn help them to change their productions according to requirement and needs. Next come supply, through which Wal-Mart obtains required material and inputs for production of products. A third essential component is an inventory which helps to determine the competitiveness of the company.
Wal-Mart focuses on stock bases day to day with the help of Radio Frequency Identification (RFID) which helps them to manage the inventory effectively. RFID help them to understand the availability of products with the support of bar codes printed on them. Moreover, it helps to track the remaining goods within Wal-Mart. Another critical component of the supply chain is a location which is the essential business part as it helps to understand the success of the business. While determining the positions of stores, Wal-Mart always determines customer demands and customer satisfaction. Wal-Mart considered macro as well as micro-environment before selecting their location which helped them to increase the supply chain management of the organisation. Next comes, transportation which intimately related to decisions of inventory and also with customer requirement. Wal-Mart offers its product to customers mainly with stores and by their trucks for delivery. The use of store and individual truck help them to deliver the goods as soon as possible to their intended customer. Last and most essential component is information, which includes collecting data from end users and connects them with resources. To execute, information globally, Wal-Mart use linked computers via the internet. This help to join all the stores globally with each other and get customer feedback and information and to implement them within the business. All these significant components usually used by all the large companies and help to link their all parts to run the business swiftly.