Posted: October 29th, 2022

Walmart supply chain comparison in China between now and 2004

Walmart supply chain comparison in China between now and 2004

China is the most populous market in the world; therefore, many retailers want to go into business. Walmart is a supply chain company that has become popular in the United States, where it started due to the low cost of exemplary products and services for consumers. Products from China travel through it to reduce their costs. The supply chain process begins with planning and obtaining details of the goods and resources needed. Walmart’s supply company devised a winning strategy, like the US, before entering the Chinese market. The company believed that the secret of distribution was the discount from its local suppliers. The company had the lowest prices of any other store while also opening stores outside of major cities to ensure customers didn’t travel far to shop. ( idem)

But in China there was a big gap between the purchasing power of citizens living in urban areas and those living in suburban and rural areas. The pattern of consumption between the different cities was dispersed in terms of scale and variety, which prevented Walmart from developing a uniform national marketing and supply strategy. For Walmart, satisfying consumer demand in different regions became an expensive practice. Walmart faces several demand forecasting challenges, the most problematic of which was the distance between distribution centers and retail stores, the underdeveloped road network, high toll rates, and different forms of transportation that were not working well. connected and seriously fragmented, it generated logistics costs for Walmart that were estimated to be very high. Also added to all these difficulties, the biggest obstacle Walmart faced in mainland China was the lack of an information technology network with suppliers, which made purchasing and distribution difficult. As a result of all the inconveniences, Walmart’s supply chain was long, various factors prevented an optimal combination for the operation. The supply chain not only increased the total cost of the operation, but also generated a loss of value, especially when dealing with perishable products.

In 2015, Walmart China management changed its focus and introduced dry and perishable goods distribution systems into its supply chain management. It is a clear indication that the supply chain has been gradually moving forward. Distribution is a component of the supply process, including transportation, delivery, and return of goods. Walmart delivers products to consumers daily using company-owned trucks. The company controls the movement of goods, which is impossible with third parties. Walmart created distribution centers to store products after purchase. The work has been facilitated since different warehouses in the shopping centers were close to the distributions. Today, technology has drastically improved, and transportation has become even cheaper. The company operates electronic platforms where a third party can deliver to the consumer when ordering. The offer is taking a new turn for the better. Deliveries today can be made to the consumer’s preferred locations through the company’s arrangements at the required time. Perishable and cooked foods can be delivered on short notice to specific company addresses. Goods arriving at consumer destinations damaged are returned and replaced, or consumers are reimbursed.

Technology has incredibly advanced and influenced the supply chain in China. The customer had to walk to shopping malls to buy goods. Today’s technology has advanced, and goods are delivered to consumers’ premises.” Almost all areas are open for trading by anyone. China had restricted the opening of businesses in the country by outsiders. China is very competitive today due to its technological position. It represents the world’s largest production and supply of personal computers, mobile phones, and televisions. The supply side has improved with technology. Rapid technological growth in China has fueled the large young market that enables the large-scale commercialization of digital business models. The Chinese government has also lifted regulations on the digital sector until they have enough time to experiment.

China has developed dramatically in terms of infrastructure (Chan & Ania, 2011). Walmart has been in business since market accessibility was a challenge. The country was not fully open to trade. The government has drastically improved the supply process by ensuring that all consumers are accessible. Railway lines and highways connect to all parts of the country. Exceptional infrastructure development has dramatically improved China’s economy. The supply chain has improved a lot in China over the years. Technology and infrastructure contribute to improvement.

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Walmart’s supply chain in China between now and 2004

Because China is the world’s most populous market, many retailers want to open shop there. Walmart is a supply chain organization that has grown in popularity in the United States, where it began by offering low-cost exemplary items and services to customers. Products from China pass through it to save money. The supply chain process begins with planning and gathering information about the goods and resources required. Before entering the Chinese market, Walmart’s supply company devised a winning approach, similar to the US. The corporation thought the secret to distribution was a discount from its local suppliers. The company had the lowest prices of any other store while also opening

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