Walmart China Supply Chain Transformation
Subject
Business Finance
Question Description
I. Executive Summary: In this section, explain the purpose of your brief and highlight key information and findings that will aid the understanding of the more in-depth analysis and recommendations to follow.
II. Demand Forecasting: In this section, first assess the supply and demand side of Walmart’s product flow, including the customer’s needs and the supplier’s capabilities, in order to then identify potential alignments that will keep cost and waste at a minimum. A. Evaluation 1. Analyze Walmart’s suppliers in terms of their abilities to meet the demand of customers during steady-state and peak operations. How effective are each supplier’s inventory reorder points and economic order quantities? Support your analysis with quantitative examples. 2. Additionally, describe demand-forecasting constraints that exist within the supply chain. For example, consider the distance of the stores and the compatibility of the products in terms of shipping, storage, and so on. B. Recommendations: Based on your evaluation, recommend strategies for better aligning the supply and demand side of Walmart’s product flow that will keep cost and waste at a minimum.
III. Sourcing: In this section, first evaluate the network sourcing strategy of Walmart in order to then identify possible areas in need of improvement that will leave room for future expansion. A. Evaluation: Assess the current network sourcing strategy and determine whether or not the number and quality of suppliers is the optimal mix for the operation. To what extent do the current suppliers meet steady-state and peak demand? Are they consistently providing products that meet or exceed Walmart’s quality standards? Defend your assessment with examples. B. Recommendations 1. Recommend a strategy to optimize the sourcing network that takes into account current operations and leaves room for future expansion. Be sure to consider any alternative sources of materials available to the organization in your response. 2. Recommend a standard procedure for vetting suppliers to ensure that they are compliant with the corporate social responsibility guidelines of Walmart. 3. Make sure that you have recommended the best sourcing practices for Walmart using appropriate quantitative methods.