Can Wal-Mart SCM Model be Exported?

Supply Chain and Quality Management


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Supply Chain and Quality Management > Best Practices > Can Wal-Mart SCM Model be Exported?

Can Wal-Mart SCM Model be Exported?
Anurag Pandey, Student (University), United Kingdom, Member
Can Wal-Martís supply chain model be copied in other countries or by other retailers? Why (not)?

Obviously Not
Heiko Bohm, Manager, Switzerland, Member
As we can see in Germany it did not work out for Wal-Mart. They tried and failed. I believe the mistake they made is that they applied american consumer behavior to the European market. Therefore the algorythm did not work out and the shelves were empty - therefore no more clients - no more data available - system failure!!

Anurag Pandey, Student (University), United Kingdom, Member
Can you provide links of website where I can find out why they lack.

Of Course it Can..
Hector Estrada, United States, Member
The thing to keep in mind here is to align the supply chain model with company strategy, I think that in the case of Wal-Mart, their strategy has always been price leadership to consumers. This could only mean that their supply chain must be run as efficiently as possible to reduce costs.

Wal-Mart's Model in ROW
Anurag Pandey, Student (University), United Kingdom, Member
What about the rest of the world, were they successful elsewhere?

Of Course it Can
Alejandro Jimenez, Manager, Mexico, Member
I can tell you the experience of Wal-Mart in Mexico. I can see that the SCM model has been successfully implemented because of three factors:
- infrastructure by establishing distribution centers all over the country (we have a number of them in the northern, central and southern regions or the country);
- the systems platform (Wal-Mart has a huge international systems development area based in Bentonville but with mirrors worldwide) and last but not least
- the customer satisfaction culture that has been well integrated to our culture (we are warm people used to give quality service).

Walmart in South Africa and UK
Mark Heath MCIPS, Director, China, Member
Walmart is currently buying 51% of Massmart, a South African based retailer as their entry into the African continent. Let's see how they tackle the African consumer.
Walmart also bought Asda in the UK, I beleive that has been a successful venture for them. They have expanded into more and more non-food categories including a successful clothing line.

Walmart Global Sourcing
Mark Heath MCIPS, Director, China, Member
Although likely to go through, the Walmart bid for Massmart has not been without its challenges from the local unions and political parties supported by those unions.
Conditions are likely to be attached to the deal to protect the local South-African based producers and employees in certain categories key to the South-African economy.
Hence the benefits of Walmarts global sourcing power will not be fully utilised.

Yes it Can Be to an Extent
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
Yes the Walmart strategy can be applied to other countries, but many constraints such as connectivity, space etc. play an important role.
In India this type of supply chain has already been copied by Big Bazars and success has also been seen.
But when you look at retailers, it will be honestly difficult fro them, because they need strong SCM capabilities for this and a proper warehouse where you can manage both perishable and non perishable items.
A strong spoke hub model for retailers is a really tough job. Hence it application of this model is difficult here.

Supply Chain and Quality Management

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