Wal-Mart consistent flow Essay
Wal-Mart ensures a consistent flow of goods in to their stores to have enough stock to meet customer demands and supply in time. Operation concept used by Wal-Mart is the computerized system that helped in packaging the products giving all details of a package hence reducing a lot of paperwork. The managers could also use computer to centrally manage the human resources (Chandran 2003). Logistics management is used involves effective transportation system (Harrison & van Hoek 2002).
This involves using dedicated transport services to deliver goods to customers or distribute goods to other stores. The drivers’ details are kept when on duty to ensure they adhere to the company’s rules when at work (Campbell 1999). To improve on services Wal-Mart had a cross docking system that involved packaging of the finished goods in the production plant and supplying them directly to customer (Chandran 2003). This is an operation concept to enhance customer satisfaction in terms of delivery time.
Wal-Mart had an inventory system that helped them manage demands in each stores. The company has used technology a lot in managing the numerous stores. Wal-Mart has invested in information and communication technology to help manage purchase and supply of goods and services in
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The company has invented many systems to help cater for different customer needs for instance different sizes of packages, prices (Chandran 2003). A network domain for suppliers has been made to easily reach them. Wal-Mart has formed partnerships with other companies to allow technology transfer hence improve their services. The companies in partnership can share storage costs and information to facilitate decision making. The two companies would compare their operations to identify areas that required adjustments hence make relevant improvements.
This was also a way to gain competitive advantage. Through collaborations the company would improve on their services to customers to be more competitive (Hayes & Wheelwright 1985). Question 2: Marching the Market Demand with an Organization’s Capacity To march or balance the market demand with the organizational capacity requires planning. This involves looking ahead to make arrangements to sufficiently produce a capacity that meets the expected level of demand (Johnston & Clark 2005).
Customer information recorded in the master schedule is used to identify the customer needs and hence knowing areas where adjustments are required to meet the demands both in terms of quality and time. A rough cut capacity planning can be used to help achieve this. The plan helps control the changes in the levels of demand and capacity. With the rough cut capacity planning all the variables will be adjusted against the resources available for production.