Logistics SLP Mod 2/3

Supply Chain Management: According to researches, Wal-Mart is lauded to have a well established communications system operating in the retailing industry. It has a state-of-the art SCM method that applies advanced communication technology that connects through its retail centers, distribution stores, headquarters and all suppliers of their goods and services. The organization applied the use of IT to enable it to use bar codes for inventory tracking. This also facilitated Electronic Data Interchange that made it to have direct links with its stores. Besides it actualized the installation of satellite contact systems to synchronize all the activities of its supply chain  HYPERLINK "/casestudies/catalogue/Operations/Wal-Mart-Supply%20Chain%20Management-IT-Internet-Operations%20Case%20Study.htm" \o "Wal-Mart's Supply Chain Management Practices (B): Using IT/Internet to Manage the Supply Chain - Operations Case Study - Page4" A supply chain is defined as a structural linkage of market players in a given industry. It helps to ensure the process of production, sale and delivery of goods to the end user is successful. This process involves a chain of retailers, distributors, suppliers, transporters and warehouse. There are three components that Walmart has designed in order to improve its services in the market. These components are efficient manufacturing, supply chain and distribution. Supply chain ensures that raw materials reach the manufacturer, who in turn transforms them into finished goods. Goods and services from Walmart is passed through its supply chain to the Distributor who eventually distributes the final product to consumers through retailers. The supply chain may also be used to refer to the way in which various processes supply to each other. Such an example is the application to Walmart’s finance structure and internet technology. In this modern society, Walmart endeavors to have an strategic and effective supply chain in order to effectively compete in the market. Besides Walmarts business strategy that defines its way forward, its efficient supply chain dictates how the company operations can be done in order to attain optimal efficiency. The process that oversees coordination of the flow of resources (materials, information and finances) from the supplier to the consumer is referred to as supply chain management (Luttrell, 2010).  "Supply chain is often defined as the reach from the supplier's supplier to the customer's customer. Defining and mapping the supply chain may uncover opportunities for quick cost reductions, but supply chain management provides a different type of cost reduction opportunity. It's a sustained over-time means to savings. It's what happens after the quick cost-saving initiatives have been tried. When the CEO asks for more savings, supply chain management is what comes next. It takes time to put into practice, but continuously applied, supply chain management has the potential to yield sustainable savings sought by CEOs’’ (Nagurney, 2006). In this paper, we are going to examine a technological supply chain in Walmart. We will analyze the supply chain design of Walmart and discuss ways in which optimal efficiency can be achieved in the organization. We consider two partners in business, who exchange purchase-order messages. In our scenario, let us observe the buyer a high-tech equipment manufacturer, whose automated data exchange uses EDI-based ways. These manufacturers face the following challenge: When dealing with suppliers, who do not use EDI, the only option for the manufacturer would be to utilize fax, telephone, Web applications and e-mail with spreadsheets. On the other hand, when dealing with suppliers who use EDI, the manufactures lack sufficient ability to incorporate/match the communications of the client with their back-end ERP system. This would mean that, they have to by hand, re-enter in the ERP, orders received through the EDI. It is evident that Walmart is operating in a poorly designed supply chain. It would require automation and integration in order for it to upgrade its supply chain. Walmart can achieve this by making sure that the processes of purchasing, demand, inventory and communication with clients is automated. The organization needs to link up through internet, with their clientele, while integrating with applications of their current line of business (Oliver, et al., 1982). The second trading partner, a medium-scale seller, supplies high performance integrated circuits. To communicate with their business partners, they do not use EDI. They rely on e-mail with attached Microsoft Excel spreadsheets, fax, and telephone, FTP, and web applications. Their supply chain design too, is poor. They need to attain a high level of efficiency so as to minimize operation costs, optimize customer utility be able to compete effectively in the market. Both Walmart and its trading partner need automation and integration in their supply chain system in order to achieve efficiency and competitive advantage. Therefore, I suggest they make use of the RosettaNet solution to their current problem. This is a system based on Information Technology (IT). This system can transform Walmart’s substandard (disjointed and incompatible) communications technology to standard and more integrated systems. This means that, with technology, it is possible for the supply chain of Walmart to integrate incompatible processes of individual partners to one standard connection (Hines, 2004). The use of Microsoft BizTalk Server and BizTalk 2009 Accelerator for RosettaNet (BTARN) in Walmart would help solve their current problem through automating the process and therefore generating high standard purchase-orders and feedback. This integrated system helps to eliminate the cumbersome manual operations and transactions that are currently done through computer systems with integrated servers hence saving on time and energy while attaining high efficiency in the supply chain. The following is a diagram to represent the integrated system: SHAPE \* MERGEFORMAT 
 In the above case, nearly all aspects of the purchase-order requests and responses of Walmart are automated by BizTalk Server and BTARN 2009. This applies to both the manufacturer and the IC suppli...