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RUNNING HEAD: STRATEGIC SUPPLY CHAIN
Name of the student
Name of the university
Authors note
Executive summary
Firstly this report has showed a brief overview of the resources used in preparing the report.
Then it stated about the various aims and objectives of the report and the purpose for which
the readers must go through this report. Then it stated about the various theoretical analysis of
the information that are used in the transportation management. The implementation of
technologies and the benefits of it has also been stated in this report. The further discussed
about the various benefits of the transportation management in the supply chain of the
companies. Lastly it draws the theoretical concepts of gaining competitive advantages that
the firms get with the help of transportation management. Walmart is the live company that is
taken as an example to elaborate these points. A thorough comparison of the theoretical
concepts with the transportation management of Walmart has also been shown in this report.
Lastly the report ended by discussing various issues that the transportation management of
Walmart is facing presently.
STRATEGIC SUPPLY CHAIN
1
Table of Contents
Table of figures
...........................................................................................................................
3
Overview of the resources of investigation
................................................................................
4
Objective of the case study
........................................................................................................
4
Theoretical analysis
....................................................................................................................
4
Information about the transportation system in the supply chain domain
.............................
4
Latest development of transportation in the SCM
.................................................................
5
Needs of transportation system on the supply chain management
........................................
6
Activities involved in the transportation system
....................................................................
7
Ways transportation can bring efficiencies to gain competitive advantages
..........................
7
Real-world example: Walmart
....................................................................................................
8
Transportation of supply chain in Walmart
............................................................................
8
Latest development in the transportation system of Walmart
................................................
9
Ways transportation system works at Walmart
......................................................................
9
Ways transportation system of Walmart add values to its product and services
..................
10
Ways Walmart is gaining competitive advantages with the help of transportation system..10
Discussion
................................................................................................................................
11
Transformation management in the SCM
............................................................................
11
Latest development of Walmart’s transportation system
.....................................................
12
Activities involved in the transportation system
..................................................................
12
Values that transportation management adds
.......................................................................
13
Ways transportation management give competitive advantages
..........................................
14
Issues identified
........................................................................................................................
15
Conclusion
................................................................................................................................
17
References
................................................................................................................................
18
STRATEGIC SUPPLY CHAIN
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Table of figures
Figure no
Name of the figure
Page no
1
Transportation management of Walmart
11
2
Implementation of technology in transportation system
12
3
Activities involved in the transportation management
13
4
Added values of transportation system1
14
5
Competitive advantages from the transportation management
15
STRATEGIC SUPPLY CHAIN
3
Overview of the resources of investigation
The report is about the transportation management system of Walmart. There are various data
that has been taken to discuss about the transportation management of Walmart and the
various ways the company is successfully maintaining its transportation across the globe. The
sources include various data and information of Walmart that are all referred to the
transportation system of Walmart. The report also took various resources regarding the
innovation in the transportation system of Walmart and the ways the company has managed
to do so. Further the report also used different sources to note down the various activities that
Walmart performs utilize their transportation system in the right way. There are various
values that the transportation system of Walmart add in the business of the company. Lastly
the report gathered information about different ways the transportation system of Walmart is
helping the company to give efficiency in the supply chain management of the company.
Objective of the case study
The aims and objectives of the report is to work with the supply chain management of
Walmart and to understand its supply chain management across the globe. To understand this
the report will be using various resources and various examples of Walmart to understand the
various ways how the transportation system is helping the company to gain its competitive
advantages. The report further aimed to discuss and compare the transportation system of
Walmart with its various competitor firms.
Theoretical analysis
Information about the transportation system in the supply chain domain
Transportation in a supply-chain context refers to the shipment of merchandise from one
location to another, starting at the starting point of the supply chain with materials making the
transition from the assembly line to a warehouse and continuing all through the process back
to the point of delivery client with the goods being bought by the consumer delivered exactly
STRATEGIC SUPPLY CHAIN
4
to their door. Considering transportation is so vital, shop managers should look into it inside
the supply chains of their business. Finally, in an environment where mobility may account
for as much as 70% of total business expenses, a large portion of which is related with
transportation and logistics expenditures, this may be the only way to minimise overall
spending.
Modern transport executives face more challenges than ever before, therefore
reducing the effects of these factors is critical to keeping the infrastructure functioning
properly. Manpower deficiencies, cybercrime, and decaying infrastructure are just a few of
the current threats to the transportation industry. Businesses must keep up with technology
advancements if they're going to keep themselves profitable. As vehicle technological
innovation has expanded in recent years, the sector has become increasingly vulnerable to
new risks such as illegal hacking, requiring drivers to employ the most advanced security
technologies and equipment.
Latest development of transportation in the SCM
The worldwide transport industry has changed dramatically in recent years as a result of the
growth of e-commerce enterprises and the spread of the online world among people. It is
clear that the transport business is evolving with cutting-edge technical solutions driven by
market forces. Transportation administrators will be always on the lookout for new ideas to
implement in their firms (
Ivașcenco 2023
). Technology is a trendy issue right now, and it is
developing by the minute in areas such as administration, processes, and contracts. It brings
innovative business practises from many sectors into the modern age of digital technology. As
a side effect of digitization, customers' relations with businesses are altering radically.
Logistics networks have become increasingly complex over the past few decades as a
result of new technologies and innovations. As a result, fresh approaches for dealing with
them, in addition to increasing the flexibility of supply chains, are necessary. The key topics
STRATEGIC SUPPLY CHAIN
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in supply-chain management today include artificial intelligence and data mining, acquisition
as a business process, continuous logistics, security and authority, and a stronger emphasis on
ecological. Robotics and artificial intelligence are becoming increasingly common in the
logistics industry, with the objective of reducing waste and streamlining the whole supply
chain by doing mundane and repetitive tasks.
The material connection between different parts of the supply chain is mobility.
Transportation integrates each stage of the procedure, which goes from the initial goods being
moved from suppliers or where they were bought, through the location where they are
examined and finally to the ultimate client. Companies are going to waste a lot of their
revenue if they do not have an inexpensive and trustworthy shipping strategy in place, which
might be an edge in the market (
Zhang 2023
). Let's take a deeper look at the manner in which
mobility affects the supply chain of an industry. Running a business is already a costly effort.
With careful consideration and establishing a community can retain a significant amount of
leisure revenue with a comprehensive transit infrastructure in place.
Needs of transportation system on the supply chain management
Logistics is possibly the most crucial component of a supply chain. It comprises supplying
items from the start to the end of a production process. Transportation must be effectively
coordinated in order for a company's supply chain to have the ability to be recognised
functional. This involves making certain that the delivery and logistics strategy is agile and
adaptive to market requirements. The conveyance of a the producer's supply chain may be
used to provide customer care (
Montoya-Torres, Muñoz-Villamizar and Mejia-Argueta 2023
).
Consumer expectations must be at the focus of the whole supply chain as things flow from
one location to another about the supplier to the buyers. Transportation throughout the
manufacturing process is crucial to insuring that things get to clients in the same condition in
which they were provided on time. Prioritisation of shipments is crucial in transportation. The
STRATEGIC SUPPLY CHAIN
6
importance of objects in transit is governed by a number of factors such as people, goods, the
time of year, and intermediaries.
Activities involved in the transportation system
Transportation, along with manufacturing and warehouse space, represent some of the key
supply chain operations. It comprises a flurry of tasks, ranging from distribution plans to
transportation surveillance to shipment inspection, all of these must be properly handled. The
most sought attribute of TMS is its control tower features. A TMS control structure, which
controls the whole shipping process, captures data about things in real-time via API or EDI
technologies, and so provides crucial data from manufacture to fulfilment centres,
transportation, and purchasers to people who utilise it. Ways transportation can bring efficiencies to gain competitive advantages Transportation management entails more than simply transporting products at the highest
possible cost. The main focus now is on significance, and businesses are using the chain of
transmission as an opportunity for creating lasting jobs in an ever-changing macroeconomic
and cultural environment. In today's work environment, an information-driven approach to
decision-making is crucial. By assessing goods spending by client, control, or product,
businesses may develop cost-competitive structures and find opportunities for change. Data
collection provides a uniform, comprehensive view of a company's whole transportation
costly, not with regard to warehouse and administrative costs.
A growing number of shippers value ecologically conscious business practises.
Almost every company may lower its carbon footprint by constantly examining cargo
planning options, consolidation opportunities, and mode shift capabilities. The capacity to see
everything in the visible Chain allows supply chain players to identify inefficiencies, expose
improvements, minimise waste, and save money. Shippers are working hard to make it easier
for carriers to do deal with them by encouraging capacity promises, flexible delivery
STRATEGIC SUPPLY CHAIN
7
schedules, and performance rewards. Recognising how to support partner recipients is crucial
in restricted capacity advertising. Collaboration with providers to manage products and build
ongoing transportation plans may end up resulting in an economically beneficial
collaboration in which providers gain performance and capacity as needed.
A supply chain is made up of numerous moving parts, and each and every one must
work independently and simultaneously in parallel for the whole network to function
properly. It is critical to be competent in identifying technical issues, and having a strict
system and the ability to intervene when things do not go exactly as expected can assist in
reducing repeated interruptions. As a company grows, it may prove challenging to connect
and collect data from various data-gathering systems. In today's ever-changing business
environment, having a scalable strategy is critical. Integrating every one of the company's
departments and transactions into one computer network will allow tracking of firm from a
centralized location.
Real-world example: Walmart
Transportation of supply chain in Walmart
Walmart has one of the most powerful private truckload networks in the world, providing it
complete control across its distribution network and operations. The organisation effectively
organises the transportation of commodities from producers to distribution hubs and from
distribution points to stores (
Cahyono et al.
2023
). Walmart's transport system is designed to
optimise shipment routes, consolidate items, and reduce shipping costs. In order to improve
the long-term profitability and efficacy of its logistics arrangement, the company is also
looking into alternate modes of transportation that include railway and modal. Walmart has a
large network of factories strategically located throughout many nations. These distribution
facilities act as depots for gathering, sorting, and transferring items to Walmart stores.
STRATEGIC SUPPLY CHAIN
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Walmart prioritises ethical supply chain behaviours and supplier responsibility.
Companies which participate in the Healthy Sourcing scheme must meet severe standards.
This strategy ensures that Walmart's suppliers comply to stringent employment rights,
security at work, regulatory oversight, and environmental sustainability standards. Walmart
collaborates extensively with its vendors in order to promote ecological sustainability,
environmental improvements, fair labour methods, and responsible commercial practises
throughout the supply system. The value of strong leadership in commerce, the universe, and
sustainability is exemplified by the Walmart product supply chain.
Latest development in the transportation system of Walmart
Walmart is still considered as a supply chain management forerunner. Nevertheless, the
company's specialisation did not shield it from a problem that has characterised the
transportation industry for decades: huge amounts of data disagreements in the charging and
remittance procedures used by goods carriers, necessitating costly reconciling operations and
resulting in lengthy payment delays. In reacting, Walmart devised a strategy in which it
employed the blockchain technology, a distributed-ledger electronic gadget, to create an
automated system that could handle invoices from and reparations to its 75 third-party
transportation suppliers.
Walmart has also employed the Internet of Things to monitor food safety. To provide
an insight of goods status, IoT examines data from equipment at various stages of the
manufacturing process, from workplaces to transportation and markets. Using blockchain and
IoT technologies, food-borne viruses and associated problems may be identified and managed
more efficiently. Many more data-collection solutions are being employed to solve concerns
and improve management processes.
STRATEGIC SUPPLY CHAIN
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Ways transportation system works at Walmart
Walmart, as a worldwide retailer with an excellent transportation the system, has the capacity
to significantly reduce emissions of carbon dioxide. Walmart has what is considered to be the
largest and safest fleets in the country, with 15,000 drivers, 12,000 tractor types, and 90,000
trailers doing 1.2 billion miles every year (
Bokrantz and Dul 2023
). Walmart is implementing
a substantial approach to make an important difference by evaluating the features of three
separate fuel types: renewable natural gas, a form of hydrogen and electrification. Walmart is
investigating solutions for frozen wagons and yard trucks, as well as off-road vehicles.
Ways transportation system of Walmart add values to its product and services
The transportation system of Walmart adds great value in delivering its product and services.
This is because Walmart is a company that has its business globally. Therefore the
transportation system of the company is also huge and it allows the company to deliver its
products and services at the right time. With the help of transportation system, the company
delivers its products to its customers with high efficiency. This is the primary reason by
which the transportation system of Walmart allows the company to gain its competitive
advantages from the market (
Meredith and Shafer 2023
). The transportation system of
Walmart is made in such a way so that it allows the business to reduce its operational costs
and thereby allowing the company to deliver fresh products to its customers. Due to its fast
and efficient transportation system, the retail chain of the company doesn’t face any problem
regarding the availability of the products. This means the customers can get the products at
any point of time.
Ways Walmart is gaining competitive advantages with the help of transportation system
Walmart has a large truck fleet and a team of skilled drivers to run it. This large fleet of vans
guarantees that things are provided on time to clientele. The company's concentration on
technology that enable successful supply chain management is a further feature of the
STRATEGIC SUPPLY CHAIN
10
organization's supply-chain excellence approach (
Winata and Ellitan 2023
). Its logistics
system is believed to be among the most sophisticated and efficient. Incorporating cutting-
edge transportation technology, upgrading supply chain managers, and locating distribution
centres in strategic locations are all essential components of its strategy to reduce operational
and administrative costs.
Discussion
Transformation management in the SCM
The transportation management is one of the crucial elements in the supply chain
management of the companies (
Alteka 2023
). With the help of the transportation
management different companies gain their competitive advantages from it. The
transportation management helps the companies to deliver their products and services from
one place to the other. The following figure will show the transportation management of
Walmart:
Figure 1: Transportation management of Walmart
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Source: Deveci et al.
(2022)
From the above figure it can be seen that from the various manufacturer hub of Walmart. The
good and services are being transported with the help of trucks to different retail stores of the
company across the world. This always help the customers of Walmart to get the right
product at the right time in any of the retail store of Walmart.
Latest development of Walmart’s transportation system
Due to advancement of technologies, various companies are implementing different
technologies to bring efficiencies in their transportation management (
Kheng 2023
). This will
allow the supply chain management of the company to move faster and in a more efficient
way. Like other companies, Walmart has also implemented different technologies in their
transportation system as well. The below figure will show that:
Figure 2: Implementation of technology in transportation system
Source: Wu et al.
(2022)
From the above it can be seen that Walmart like other companies has also implemented
technologies in their transportation system. This helps the company to move their products
faster and safer (
Hannila 2023
). With the help of different technologies, Walmart can check
whether the stocks of products that they have received are all alright or not. This is because at
STRATEGIC SUPPLY CHAIN
12
the time of transportation some products might get damaged. Apart from that the technologies
help Walmart to make their transportation management faster.
Activities involved in the transportation system
There are various activities that are involved in the transportation management of the
company. Like various companies need to select their mode of transport to displace their
products and services from place to the other. It is important for the companies to
communicate with the transport managers. This will ensure them that they are not facing any
problem at the time of transportation. Following figure will show the activities that Walmart’s
transportation system is involved:
Figure 3: Activities involved in the transportation management
Source: Rakhmanberdiev et al.
(2022)
From the above it can be seen that there are various activities that the transportation system of
Walmart needs to perform for a successful transportation of products and services. Walmart is
always successful in their transportation management because they select the right mode of
transport for the right products and services (
Queiroz et al.
2023
). Apart from that Walmart is
always active in managing their freights so that they can reduce the costs of it.
STRATEGIC SUPPLY CHAIN
13
Values that transportation management adds
There are several values that the transportation system adds to the business of the companies
along with its supply chain management. With the right transportation system it brings
efficiencies in the SCM of the companies (
Alabdullah and Kanaan-Jebna 2023
). If the
company has a good transportation system then it will help the business to earn more profits
from it to deliver right goods at the right time. The following will show the added values of
transportation management:
Figure 4: Added values of transportation system
Source: Yan and Wang (2022)
From the above it can be seen that there are various values that the transportation system of
Walmart adds to its products and services. Firstly, the right transportation management helps
Walmart to carry the freights of products in a right way. Secondly the packing and packaging
of the products are also done in such a way so that it doesn’t get damaged. Doing such helps
Walmart to save a lot of cost and thus allows the company to earn more profits from it.
Ways transportation management give competitive advantages
There are various competitive advantages that the companies can gain with the help of
transportation system. Like if the transportation management can be managed in the right
way then it will help the company to save a lots of costs of its products and services. With
that it will also add different values logistics and thereby will create reliability and
STRATEGIC SUPPLY CHAIN
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responsiveness throughout the company (
Almutairi et al.
2023
). The below figure will show
the competitive advantages that Walmart gain from their transportation management:
Figure 5: Competitive advantages from the transportation management
Source: Ajay et al.
(2022)
From the above, it can be seen that with the help of transportation management, Walmart
gains different competitive advantages and such things help the business to keep a step ahead
from its competitors (
Altekar 2023
). Walmart is a company that has its business all across the
world and therefore the transportation system of the company allows the business to deliver
products at very short time. This helps the company to satisfy its customers and with that the
company also gain its competitive advantage from its global market.
Issues identified
The difficulty Walmart faces with regard to controlling its own logistics is sourcing things
from a diverse range of vendors and distributors. Walmart must manage its relationships with
STRATEGIC SUPPLY CHAIN
15
thousands of vendors and dozens of thousands of goods to ensure that it receives the stuff that
customers want at the right price and endurance. A complex and complicated procurement
process is essential, as are adequate tools and methods for monitoring and supervising vendor
performance. Additionally, this challenge highlights another concern relating to the rising
importance of environmental sustainability in the food industry, such as reducing carbon
dioxide released into the atmosphere through the adoption of less polluting practises and
technologies (
Bhat and Dubey 2023
). One of the fundamental challenges in Walmart's
interaction with suppliers is the enormous a broad range of its business strategy. The firm has
a sprawling global network of distribution channels, distribution hubs, and producers, with
millions of things traversing tremendous distances on a regular basis as they traverse the
convoluted supply chain. This makes it difficult to organise and regulate the flow of
commodities, as well as to ensure that items are supplied to companies and customers on time
and at an affordable price.
STRATEGIC SUPPLY CHAIN
16
Conclusion
From the above report it can be concluded that Walmart is a company which is having its
business all across the world. The company has its vast transportation management that helps
the company to deliver goods on time. The report also concluded that with the help of the
transportation system, the company can add various values to its own products and services.
Walmart isa company that has implemented different technologies to bring efficiencies in
their transportation management. Lastly, the report concluded that Walmart sometimes face
various transportation management challenges but the company can also resolve it.
STRATEGIC SUPPLY CHAIN
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References
Ajay, P., Nagaraj, B., Pillai, B.M., Suthakorn, J. and Bradha, M., 2022. Intelligent ecofriendly
transport management system based on iot in urban areas.
Environment, Development and Sustainability
, pp.1-8.
Alabdullah, T.T.Y. and Kanaan-Jebna, A., 2023. The Mediating Role of Innovation on the Relationship between Supply Chain Management and Company Performance in the Kingdom
of Bahrain.
Journal of Humanities, Social Sciences and Business
,
3
(1), pp.160-176.
Almutairi, K., Hosseini Dehshiri, S.J., Hosseini Dehshiri, S.S., Hoa, A.X., Arockia Dhanraj, J., Mostafaeipour, A., Issakhov, A. and Techato, K., 2023. Blockchain Technology application
challenges in renewable energy supply chain management.
Environmental Science and Pollution Research
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(28), pp.72041-72058.
Altekar, R.V., 2023.
Supply chain management: Concepts and cases
. PHI Learning Pvt. Ltd..
Altekar, R.V., 2023.
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Bhat, M.S. and Dubey, S., 2023. AN OVERVIEW OF THE EFFECTS OF BLOCKCHAIN TECHNOLOGY IN FOOD CHAIN SUPPLY: A CASE STUDY ON WALMART.
The Online Journal of Distance Education and e-Learning
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Bokrantz, J. and Dul, J., 2023. Building and testing necessity theories in supply chain management.
Journal of Supply Chain Management
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Cahyono, Y., Purwoko, D., Koho, I., Setiani, A., Supendi, S., Setyoko, P., Sosiady, M. and Wijoyo, H., 2023. The role of supply chain management practices on competitive advantage and performance of halal agroindustry SMEs.
Uncertain Supply Chain Management
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Deveci, M., Pamucar, D., Gokasar, I., Delen, D. and Martínez, L., 2022. A fuzzy Einstein-
based decision support system for public transportation management at times of pandemic.
Knowledge-Based Systems
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Hannila, H., 2023. Utilizing blockchain technology in sustainable supply chain management: benefits, challenges, and motivations.
Ivașcenco, I., 2023. Building Supply Chain Resilience and Antifragility: Strategies and Technologies for Mitigating Disruptions.
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Kheng, L., 2023. Walmart: A Business Case Study in Knowledge Management, Walmart's Secret Sauce–The Use of Machine Learning, Automation, and Virtual Reality. In
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Meredith, J.R. and Shafer, S.M., 2023.
Operations and supply chain management for MBAs
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Montoya-Torres, J.R., Muñoz-Villamizar, A. and Mejia-Argueta, C., 2023. Mapping research in logistics and supply chain management during COVID-19 pandemic.
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Winata, M. and Ellitan, L., 2023. The Effectiveness of Technology Development Towards Walmart’s Sustainability Supply Chain Management.
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Wu, Y., Dai, H.N., Wang, H., Xiong, Z. and Guo, S., 2022. A survey of intelligent network slicing management for industrial IoT: Integrated approaches for smart transportation, smart energy, and smart factory.
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