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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 2
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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 5
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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 8
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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 9
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 STRATEGIC SUPPLY CHAIN 11
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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 14
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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 17
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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 , 30 (28), pp.72041-72058. Altekar, R.V., 2023. Supply chain management: Concepts and cases . PHI Learning Pvt. Ltd.. Altekar, R.V., 2023. Supply chain management: Concepts and cases . PHI Learning Pvt. Ltd.. 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 , 11 (2). Bokrantz, J. and Dul, J., 2023. Building and testing necessity theories in supply chain management. Journal of Supply Chain Management , 59 (1), pp.48-65. 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 , 11 (1), pp.153-160. STRATEGIC SUPPLY CHAIN 18
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 , 252 , p.109414. 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. Eastern European Journal for Regional Studies (EEJRS) , 9 (1), pp.70-76. 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 Cases on Enhancing Business Sustainability Through Knowledge Management Systems (pp. 33-46). IGI Global. Meredith, J.R. and Shafer, S.M., 2023. Operations and supply chain management for MBAs . John Wiley & Sons. Montoya-Torres, J.R., Muñoz-Villamizar, A. and Mejia-Argueta, C., 2023. Mapping research in logistics and supply chain management during COVID-19 pandemic. International Journal of Logistics Research and Applications , 26 (4), pp.421-441. Queiroz, M.M., Fosso Wamba, S., Pereira, S.C.F. and Chiappetta Jabbour, C.J., 2023. The metaverse as a breakthrough for operations and supply chain management: Implications and call for action. International Journal of Operations & Production Management . Rakhmanberdiev, R., Gulamov, A., Masharipov, M. and Umarova, D., 2022, June. The digitalization of business processes of railway transport of the Republic of Uzbekistan. In AIP Conference Proceedings (Vol. 2432, No. 1). AIP Publishing. STRATEGIC SUPPLY CHAIN 19
Winata, M. and Ellitan, L., 2023. The Effectiveness of Technology Development Towards Walmart’s Sustainability Supply Chain Management. J-CEKI: Jurnal Cendekia Ilmiah , 2 (2), pp.224-248. 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. IEEE Communications Surveys & Tutorials , 24 (2), pp.1175-1211. Yan, R. and Wang, S., 2022. Integrating prediction with optimization: Models and applications in transportation management. Multimodal Transportation , 1 (3), p.100018. Zhang, D., 2023. Understanding Enterprise Risk Management of the Retail Industry During the Pandemic-Case Study of Walmart. In SHS Web of Conferences (Vol. 154, p. 01018). EDP Sciences. STRATEGIC SUPPLY CHAIN 20
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