Question & Answer: MG10 Revised. Assignment answers are complete, please turn into APA format…..

MG10 Revised. Assignment answers are complete, please turn into APA format including an introduction and conclusion (Instructions are also included below)

Answer: (a) There are a number of disadvantages of hiring the local suppliers in the supply chains for the retailers like Wal-Mart. Firstly, these suppliers are small businesses and they are unable to create financial efficiencies in their operations like getting economies of scale and managing their cash flow efficiently. Because of these issues at times these suppliers need to be paid a higher price. The cash flow is an issue with these suppliers and they cannot extend credits to the retailers like the big suppliers. At times cash purchases need to be made to such suppliers’ .They need to be paid at a higher frequency as compared to the big suppliers. This results in financial issues in the supply chain for the retailers. Apart from this there are several other issues also associated with the local suppliers like their high dependency on the retailers, resistance to change and policy related issues.

(b) Yes I see problems with the varying definitions of the term local as they create confusion in creating supply chain policies for decision making. I find the definition of “grown at less than 8 hours drive” as the most suitable as it can help the retailers to actually get fresh supplies with less need for storage, refrigeration and inventory management.

Question & Answer: MG10 Revised. Assignment answers are complete, please turn into APA format..... 1Question & Answer: MG10 Revised. Assignment answers are complete, please turn into APA format..... 2:

Question & Answer: MG10 Revised. Assignment answers are complete, please turn into APA format..... 3

Expert Answer

Lets start with some information on walmart. Wal-mart stores inc. is involved as an American multinational retailer. Some data reveals about the competency of walmart as it operates in 28 countries with 11695 stores employing 2.3 million employees. They also attempt to bring wide range of products for the different category of customers. We can calculate the strength of walmart just by knowing the fact that it is the world’s largest company by revenue with $480 billion and world’s largest employer. When walmart steps to expand its US based customer they announce “one size-fits all” merchandising strategy. Walmart perform with a strategy to operate in a competitive environment in long term basis. “We operate for less” and “we buy for less” strategy helps to bring cost effective advantage for the company.

Walmart uses the local suppliers to cater its grocery and other food product demand. They hier local producer in their supply chain management as it serves many purpose.

  1. Low cost
  2. Reduce shipping cost
  3. No need to add the cost of storage (warehouse)
  4. No product spoilage
  5. Fewer stock outs

But everything comes with some disadvantages also. Local suppliers are unable to meet the financial efficiency when needed. As a result they were unable to meet the economies of scale and hence they were unable to give credit benefit like other big suppliers.

Recently walmart suppliers are in news stating that they are fighting with the walmart because vendors are refusing to pay charges and want a better deal. On this walmart counter that they too are working to simply the relationship with their suppliers. After so many years walmart stores inc. Suppliers are saying no to new margin squeezing storage fees and a payment schedule that could delay for months

Walmart evidently does not purchase any significant amount of goods from local retailers so the customary accelerator remains down 5 times of sales.

There are some challenges that walmart and their suppliers faced:-

  1. Timely payment
  2. Quality and accuracy
  3. Performance
  4. Delivery

Yes i see the problem with varying definitions of local it must be local business stay in state with their vendor purchases. It must be walmart uses its local supplies 25% to 40% of its product purchases.

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