Wal-Mart and Its Global Supply Case Study

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Over the next five years, they are working on increasing this amount to as close to: 100% as possible. With the company estimating that such a move would cut logistics costs between $4 billion to $12 billion, over the course of 5 to 15 years. (Cassidy, 2010) This is significant because it shows that the ability of Wal-Mart to seek out ways to reduce logistics costs, are helping to improve the overall cost structure of the company. At which point, this allows their profit margins to increase and they can begin expanding into other areas.

Clearly, one of the biggest elements that contribute to the overall success of Wal-Mart is their ability to control costs associated with their supply chain.

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This is important because it underscores how Wal-Mart was able to maintain it low cost structure, despite expanding rapidly in size. Where, the elements of: the company owning / operating their own warehouses, using the supply chain to serve a stop gap for local stores, implementing technology to improve the overall management of the supply chain and they are continually seeking out ways to improve; all highlight how the supply chain was able to make the company one of the most successful in the world......

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