The supply chain of Walmart Essay Example | Topics and Well Written Essays - 750 words

The supply chain of Walmart - Essay Example This expose elucidates on the effects of inventory management on the strategic goals of the supply chain. Lee and Billington (1997) noted that the â€Å"supply chain must ultimately be measured by its responsiveness to customers† (p. 67). In order to achieve this strategy in the supply chain, a companys inventory management must be efficient in delivering products to customers on a timely manner. While recognizing the importance of efficient inventory management, it is important to point out that a customer’s order may involve multiple lines of shipment or even one shipment of goods. In effect, proper management of a company’s inventory along the supply chain will help determine the speed of a companys responsiveness to its customer’s orders. On the other hand, the failure to institute proper inventory management systems in the supply chain will result to failures on the supply chain strategy of responsiveness to customers requirements. A company designs its supply chain strategy so that it can maintain a competitive edge over its competitions in the ever-increasing competitive business world. Lee and Billington (1997) noted the need by customers to know when their deliveries will arrive after they placed their orders (p. 67). In effect, the failure by companies to keep their customers posted on a regular basis regarding their deliveries, especially during delays, causes discontent, loss of goodwill, and confusion from the customers. Effectively, a company may lose its competitiveness due to its failure to manage inventory effectively along the supply chain especially in times of delay in delivery. Another key strategy by companies in their supply chains is the importance of maintaining low logistics costs, which will not have an effect on the supply chain’s responsiveness. As a result, inventory management will play a crucial role in achieving this goal by