LOG503 MOD 3 SLP Assn - Logistic Planning Essay

LOG503 MOD 3 SLP Assn - Logistic Planning - Essay Example In this paper, the determination of maximizing logistics efficiency of Wal-Mart will be taken into concern. Logistic Operation of Wal-Mart An effective supply chain management has been viewed to be one of the core competitive advantages of Wal-Mart by which the company comply with the requirements as well as the demands of its valuable customers. The core competencies of Wal-Mart relating to its supply chain network encompass superior logistics management, purchasing power, appropriate retail decisions and effective cost control within distribution system. Contextually, Wal-Mart’s logistic system comprises assimilation of necessary information, transportation costs, excellent inventory management and efficient material handling as well as packaging among others. In order to determine the maximization of logistics efficiency of Wal-Mart through facility location planning, it has been apparently observed that majority of the outlets of the company are located in sub-urban areas, low-rent and close highway regions that helps them to transport as well as distribute its products in cost-efficient manner. One of the key features of logistics department of Wal-Mart has been identified to be ‘Cross Docking’ or direct distribution where stores obtain finished products directly from the manufacturing plant and helps to manage inventory system in an efficient manner. Maintaining effective interrelation with the suppliers along with efficient packaging and labeling of the products supported the organization to merchandize its product not only in the US but also in different regions throughout the globe. The company incessantly focuses upon partnering with its suppliers in order to increase its labeling functioning for enhancing its efficiency towards transporting goods from one distribution center to other retail outlets. It has been viewed that a majority of the distribution centers of Wal-Mart are located closely to its retail outlets that helps them to allocate its broad assortment of products in a cost-efficient manner (Surti, 2010; Wal-Mart Stores, Inc., 2012). Example, Analysis and Recommendation The effective logistic system and efficient supply chain management supports Wal-Mart to distribute its broad assortment of products from distribution centers to its different retail outlets in an effective manner. Thus, it can be affirmed that the company maximize its logistics efficiency through facilitating effectual location planning. For example, the private fleet of trucks that possess by the company provides point-to-point services according to the store requirements. In this similar concern, it has been viewed that the transportation mechanism of the company operates 24/7 in order to maintain fleet of 6,500 tractors and 55,000 trailers across the overall distribution centers within the US. Moreover, Wal-Mart emphasizes upon following leading-edge logistic systems in order to increase the satisfaction level of the customers a nd attain its predetermined business targets. The other example through which the company can maximize its logistics efficiency through facility location planning is the introduction of ‘DotCom’ center. This particular center supports the online distribution of the