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Walmart and Proctor & Gamble implemented a successful supply chain management (SCM) system. The system links Wal-Mart’s distribution centers directly to P&G’s manufacturing centers. Each time a Wal-Mart customer purchases a P&G product, the system sends a message directly to P&G’s factory for a reorder. Answer the below questions related to this case.
Please explain how Wal-Mart’s and P&G’s relationship would be affected if a catastrophic incident destroyed the SCM system?
How would Wal-Mart reorder products?
How would Wal-Mart send payments?
How would P&G know which products to send to Wal-Mart?
Expert Answer
1. If a catastrophic incident took place inbetween definately it will effects the SCM system.But rite now the SCM was more powerful and it has a high sucess rate.The sales of the goods will definately in down. Becuase if this incident occurs people were in fear to get to the stores and to buy the products.In this situation generally people were not show a much interest to buy the products dialy.So definately the market will goes down. The chain managament work work and due to less goods in walmart stores the customers wont show much interest to buy..So the relationship between p&g and walmart will breakdown because of this incident.The shares value will get down.
2.Re-order is totally based on recently purchased items in the customer account.Walmart will search what are the orders for this purticaluar person till now will make in detail list and it will be visible to the customer.Now the customer can easily identify his products what he ordered at lasttime so that it can be easy for the customer to place reorder.The reorder list will be stored in walmart database seperately in table.so that it can pick the re-order data instantly.
3.If the customer didnt like the product what he ordered in e-commerce or in online then at given time he can return the product to the walmart stores and get his payment back.Then walmart stores the data in the database about the details of the customer like what he ordered and id of the order and how much cost should return to the customer like this every information will be avaliable to the walmart and even to the customer when he access the site. The the walmart will return the money to thge customer through check or through the bank debitcards.
4. P&G wil have a detail list like what are the products are good in the market rite now and how much rate should keep on that puricular product for margin .Then P&G will transfer the goods to the walmart stores according to the statistics and walmart will receive the goods and sell to the customers.Here P&G will be the seller to the walmart and wakmart is the receiver.Then the chain goes on.
