Value Chain Analysis of Walmart

Walmart is the world’s leading retail chain store American multinational company. Bud Walton and Sam Walton founded the retail chain store company in 1962. Today, we’ll discuss the value chain analysis of Walmart supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Top Suppliers of Walmart

• Prime Water Corporation
• Green Dot Corporation
• HP
• P&G
• Plug Power

The Value chain analysis of Walmart supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Walmart value chain analysis company example as follows;

Value Chain Analysis of Walmart

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Walmart supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Walmart

The primary activities are directly involved in the production of products and goods and adding value to the retail chain store company. Some of the five main primary activities in the value chain analysis of Walmart supply chain analysis are as follows;

Inbound Logistics of Walmart

I-Suppliers Network

Walmart has established a very large suppliers network comprising approximately 2400 suppliers and vendors in various countries across the world. The retail chain store brand sources and procures products and supplies from them worth 13 billion USD. However, the company sources and procures material and supplies directly from the manufacturers without involving any intermediary to decrease cost.

II-Relationship with Suppliers

Walmart closely collaborates with various local and international suppliers and vendors as a part of its “suppliers alliance program.” It helps the company to ensure quality and achieve better control over price and product availability.

Some of the main inbound logistics practices of the retail chain store brand to achieve efficiency and decrease time are as follows;

• Cross-docking technology
• Direct-store-delivery
• Radiofrequency identification (RFID)
• Vendor-managed inventory (VMI)

Outbound Logistics of Walmart

I-Large Fleet Size

Walmart has a very large fleet size comprising 61000 trailers and 6100 trucks and they travel 700 miles of distance annually. They ship approximately 1.5 billion packages annually. However, their role is to ship products and goods from the manufacturing suppliers to the distribution centers, retail chain stores, and end consumers.

II-Distribution Centers

Walmart has a very large network of distribution centers and hubs in various countries across the globe. They temporarily store, label, package, and organize the products, and then move them to the required chain stores of the company. The advanced warehousing and distribution system of the company decreases the shipping cost, improving delivery time and truckloads.

Operations of Walmart

I-Store Operations

Walmart has established a very large network of approximately 10586 chain stores in various countries across the world. The chain store company engages in multiple types of operations ranging from efficient store layouts to improving the overall customer shopping experience. It allows the company to place the high-demanded products at the right locations to increase their convenience and accessibility.

II-Inventory Management

Efficient inventory management plays a key role in effectively managing the company’s operations. Walmart employs advanced forecasting tools and applications to avoid stockouts and accurately order the right stock and inventory.

Marketing & Sales of Walmart

I-Marketing & Advertisement

Walmart runs various types of marketing and advertisement campaigns for the promotion of its brand, products, and goods. The retail chain store company employs various media channels and marketing strategies to approach the end consumers and increase its sales.

II-Retail Chain Stores

Walmart has a network of over 10586 retail chain stores in various countries across the world. The worldwide network of chain stores amplifies the customer market reach of the company. It allows them to physically check out the product before buying it.

Services of Walmart

Walmart offers a wide range of products and services to the end consumers. The additional service portfolio helps the retail chain store company improve the customer shopping experience and promote brand loyalty among them. Some of the main services of the company are as follows;

• Walmart MoneyCenter
• Financial Services
• Mini Bank
• Healthcare
• Online Grocery Pickups
• Home delivery service
• Online shopping platforms
• AutoCare Center

Supporting Activities of Walmart

Supporting activities are indirectly involved in the production of products and goods and adding value to the retail chain store company. Some of the main supporting activities in the value chain analysis of Walmart supply chain analysis are as follows;

Infrastructure of Walmart

Walmart has established a very large infrastructure of retail chain stores, warehouses, and distribution centers, suppliers and manufacturers network, and a large fleet size. The large infrastructure of the retail chain store company would help the brand to smoothly perform its various retail chain store operations; and timely deliver the finished goods to the end consumers.

HRM of Walmart

Walmart has employed approximately 2100000 employees to manage its global operations. The human resource management department of the company plays a key role in building a large and diverse database of employees, conducting training programs, and correctly allocation the workforce in different roles.

Technological Development of Walmart

Walmart invests a significant amount of capital resources in technological development. It allows the retail chain store brand to employ advanced forecasting tools, automation technology and equipment, transportation management systems, and other advanced and sophisticated technology. As a result, it helps the company to reduce and achieve efficiency.

Procurement of Walmart

Walmart is highly careful and cautious about ethical procurement of sourcing of raw materials and finished goods from suppliers and manufacturers. The company collaborates with the right and verified suppliers and manufacturers to ensure their compliance with human rights standards and regulations.

Conclusion: Walmart Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Walmart; we have realized that Walmart is the world’s leading retail chain store company. If you are learning about the Walmart value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.