Wal-Mart is a legendary leader who has greatly excelled in its company’s operations and has been an approved supplier of products for its customers because of its Retail Link System

Wal-Mart is a legendary leader who has greatly excelled in its company’s operations and has been an approved supplier of products for its customers because of its Retail Link System (RLS) which is currently one of the hugest B2B chain systems of supply in the business world. The company starts at offering the lowest prices in the market attracting more consumers and vendors to venture into the business. In 2013 Wal-Mart offered sales worth more than 476 billion US dollars to their consumers thus keeping their promise of large supplies to their clients who rely on their services. In addition, the system is able to link the company’s large suppliers to the inventories management systems thus the suppliers are allowed to trace all actual sales according to the rules of the company and by their stores. They are also required to replenish their supplies depending on the customer’s demands which are forecasted by analysts who display the real time data of the sales over the internet.
The retail system is triggered by the financial system which allows the Wal-Mart to purchase products in the local stores and make the payments of the products at the point of delivery depending on the data displayed by the analysts on the cash registers, thus Wal-Mart can only own the products after their payment to the vendors on delivery. Moreover, the company has synchronized the customer demand projections under forecasting, collaborative planning and replenishment system allowing it to fully satisfy their needs. The invention of the smart cards which are read by scanners allows the staff to restock the shelves thus allowing clear predictions of levels of inventories, faster turnover of inventories and collaboration between the suppliers and Wal-Mart.
Question 2.
Furthermore, Wal-Mart needs to access the consumer’s information about their purchases for the company to know the types of orders to make from the suppliers. If the company does not offer the goods need by the consumers they will make their purchase somewhere else thus they will end up losing their customers thus making loses. Also, the company may end up purchasing too many goods which may not be needed by the consumers thus resulting to financial losses since the inventory is not purchased. Therefore, the Big data analysis offers relevant knowledge of the market such as weather condition, local perceptions and local culture for the company to ensure continuous supply of products and satisfaction of its consumer’s demands hence increasing the profits.
Question 3.
Wal-Mart retail link has been developed over centuries and the company has much more experience with the largest number of suppliers thus other firms cannot be in a position to meet the standards and knowledge Wal-Mart has on the systems hence making it difficult to duplicate it. For example, the company has more than 5200 stores in other countries other than the United States which has 5000 retails with a total of 60 000 suppliers and 10000retail units. Additionally, Wal-Mart has the largest information technology system in the world compared to other companies hence dominating the private sector. Wal-Mart has a business model which focuses on improving their services to enhance their customer services by offering the lowest prices and managing the supply chains effectively. Moreover, it is the leading edge of transportation, distribution and logistics hence other companies do not have such resources and relationships that would make them duplicate Wal-Mart.
Question 4.
The key behind Wal-Mart’s success is the retail chain which contributes to the company’s low costs through efficient management of the system. Every store in the company is managed on its own and the employees are trained to manage them one at a time like small companies. Also, the managers are always advised to manage departments and customers one by one thus ensuring effective management and maximum customer satisfaction. In addition, the company has advanced their systems solution to logistics such as radio frequency identifications (RFID) and also offers retail link software on the internet for the vendors to access the purchase orders, identify the consolidated loads and make necessary carrier appointments. The system’s ability to assess the vendors performance using the scorecards has resulted into Wal-Mart’s good performance and in 2012, the revenues increased by 6.4% from 443 billion in 2010 with a net income growth which increased from 15.36 billion to 15.77. Therefore, other businesses want to boost their performance and sales and profits have to adopt the system as it would work efficiently to ensure that financial losses are reduced and customers are fully satisfied.