Case 1

Question 1: Where does Walmart’s supply chain start? What triggers Walmart’s
Retail Link system to ship goods to local Walmart Stores?

Almost 60,000 suppliers across the globe make up the first link in Walmart's supply
chain. For the purpose of fulfilling orders from Walmart's buying managers, these
vendors utilize the EDI network of Walmart. In order to coordinate Walmart's
supply chain management system, EDI is a proprietary network employed by the
company. The Retail Link technology connects Walmart's biggest suppliers to its
inventory management system. This enables suppliers to watch actual store sales
and replenish inventory based on demand and Walmart policies. Based on
information about demand and sales gathered from the system, the Retail Link
system is prompted to send goods to nearby Walmart stores. This approach allows
Walmart to maintain low inventory levels and minimize costs, making it crucial to
the company's supply chain management strategy while ensuring that stores are
stocked with the products that customers want.

Question 2: Why is a detailed knowledge of consumer purchases at each store

important to Walmart’s success?

Walmart leverages in-depth knowledge about consumer purchases at each

location to enhance inventory control and maximize product availability for
customers. Walmart can swiftly refill popular items and alter its inventory levels by
studying the data on what customers are purchasing. This helps to ensure that
customers can locate what they need and lowers the possibility of stockouts.
Walmart is able to customize its product selection to the tastes of the local client
base at each location thanks to this level of specificity. By offering more Hispanic
food items in locations with a higher Hispanic population, for instance, Walmart
can modify its product assortment based on the demographics of the surrounding
area.
Also, this information can assist Walmart in identifying new product opportunities
and informing its marketing strategy, and aiding the business in spotting emerging
market trends and possibilities.

Question 3: Why can’t other large retailers easily duplicate Walmart’s Retail Link?

Walmart's Retail Link is not simply a technological platform; it is a comprehensive

system that integrates Walmart's entire supply chain and business operations,
making it difficult for other major retailers to quickly replicate it. Real-time data
exchange and collaboration across the whole supply chain are made possible by
Retail Link's integration with Walmart's vendors, logistics service providers, and
other partners.
Also, Retail Link is based on the distinctive business strategy of Walmart, which
emphasizes a highly centralized and data-driven approach to operations. This
model was created over many years, and it has a significant impact on Walmart's
organizational structure and culture. It is challenging for other shops to adopt this
strategy and accomplish the same degree of efficacy and efficiency in their
business operations.
Retail Link is also constantly developing and enhancing based on Walmart's own
requirements and input from its vendors. Other shops will find it challenging to
come up with and provide a comparable platform without making a large financial
and time commitment.

Question 4: Why does Walmart encourage its vendors to learn how to use Retail
Link?

For a number of reasons, Walmart encourages its vendors to become familiar with
Retail Link. By giving vendors access to real-time data on product sales and
inventory levels, it first aids Walmart in streamlining its supply chain and inventory
management. This enables suppliers to streamline their supply chains and
guarantee that Walmart stores have the appropriate goods available at the
appropriate time.
Second, the Retail link fosters more cooperation between Walmart and its
suppliers. Walmart and its partners can find chances to enhance product
performance and spur sales development by exchanging data and insights.
Lastly, Walmart is able to level the playing field for all of its suppliers by pushing
sellers to use Retail Link. Walmart can guarantee that all vendors have an equal
chance to thrive and expand their businesses by giving all vendors access to the
same data and insights.