Walton experienced supply chain disruptions during the pandemic due to dependencies on imported parts from China. Their supply chain was impacted by reduced labor availability, increased transportation costs, and port congestion. To prepare for future disruptions, the document recommends Walton diversify sourcing, establish domestic manufacturing, expand overseas factories, and increase contingency planning and reserve funds.
Walton experienced supply chain disruptions during the pandemic due to dependencies on imported parts from China. Their supply chain was impacted by reduced labor availability, increased transportation costs, and port congestion. To prepare for future disruptions, the document recommends Walton diversify sourcing, establish domestic manufacturing, expand overseas factories, and increase contingency planning and reserve funds.
Walton experienced supply chain disruptions during the pandemic due to dependencies on imported parts from China. Their supply chain was impacted by reduced labor availability, increased transportation costs, and port congestion. To prepare for future disruptions, the document recommends Walton diversify sourcing, establish domestic manufacturing, expand overseas factories, and increase contingency planning and reserve funds.
Walton experienced supply chain disruptions during the pandemic due to dependencies on imported parts from China. Their supply chain was impacted by reduced labor availability, increased transportation costs, and port congestion. To prepare for future disruptions, the document recommends Walton diversify sourcing, establish domestic manufacturing, expand overseas factories, and increase contingency planning and reserve funds.
Walton’s mostly imported spare part is PCB Boards. Walton should expand in-house production
Walton mostly imports from China.
Walton is trying to find more diversified sources. Walton transport their goods by Sea and by air. Walton is establishing a factory in Mirershorai nearby seaport.
Key Component that was involved in SCM is
material source planning & shipment. Walton follow 20~35% contingency plan It should focus on increasing the contingency plan.
Walton lost 14% market share due to pandemic
They should plan in long term considering the global politics and economics beforehand. Walton Paid 70M additional money due to congestion in the transshipment port. They should create reserve funds for future unplanned events and forex loss.
50% of salary were deducted.
It was a good move that they didn’t sack employees like most other companies. Production reduced 20~22% due to pandemic Long term planning may also help regarding the issue.
Labor availability decreased by 22%.
They should focus on more automation. Findings Dependency on foreign countries for RM. 7-10 months lead time & 7-8 times container cost. Low financial condition and migration. Most of the people being able to choose correct answer as they all experienced it together for long 2 years. Conclusion and Recommendation Supply chain disruption can make the world standstill. • Economic zone completion for RM availability within country. • Own ship introduction for companies like Walton. • Expanding factories to over-seas to face future calamities. • Government to act and measure about long trans- shipment process.