Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century
Languages of publication
Aim/purpose – The main purposes of the paper are to analyze features creating a Wal-Mart’s successful integrated supply chain that contributes its dominant position in the retail market and identify issues existing in Wal-Mart’s supply chain. Then some suggestions will be mentioned for Wal-Mart to establish the Triple-A supply chain. Methodology – This paper is based on literature studies for reviewing Wal-Mart’s integrated supply chain and designing an ideal Triple-A supply chain. Findings – The key findings indicate that it is necessary to build the Triple-A supply chain for not only Wal-Mart but also firms in the 21st century and in order to achieve an ideal supply chain, firms need to redesign its supply chain towards an integrated supply chain with three capabilities (agility, adaptability and alignment) in which aligning incentives can be seen as the most important component. Research implications/limitations – This research confirms that an integrated supply chain will be the first vital pre-requisite for a firm to improve the supply chain performance and achieve an ideal supply chain. However, a main limitation is that findings are only based on the literature. Contribution – It is suggested that in order to build a successful supply chain that enhances both short-run and long-run competitive advantages, firms should follow the idea of designing an ideal Triple-A supply chain with three capabilities including agility, adaptability and alignment, in which aligning incentives among participating partners can be seen as the most important feature.
- Abbaterusso J. (2010): Supply chain management at Wal-Mart. Ivey Business School, The University of Western Ontario, London, Ontario.
- Barry C.L. (2006): Breaking the chain. “Harper’s Magazine” July, pp. 33-39.
- Chandran P.M. (2003): Wal-Mart’s supply chain management practices. ICFAI Center for Management Research (ICMR).
- Chiles C.R., Dau M.T. (2005): An analysis of current supply chain best practices in the retail industry with case studies of Wal-Mart and Amazon.com. Massachusetts Institute of Technology, Master. MA.
- Dunne P.M., Lusch R.F. (2005): Retailing. 5th ed. South-Western, Mason, OH.
- Emiliani B., Stec D., Grasso L., Stodder J. (2007): Better thinking, better results: Case study and analysis of an enterprise-wide lean transformation. 2nd ed. Center for Lean Business Management, Kensington, Conn.
- Freeman R.B., Nakamura A.O., Nakamura L.I., Prud’homme M., Pyman A. : Wal-Mart. Harvard Business School Press, Boston.
- Forbes (2016): The world’s largest retailers 2016: Wal-Mart dominates but Amazon is catching up. http://www.forbes.com/sites/laurengensler/2016/05/27/global-2000-worlds-largest-retailers/#110913629a9e (access: 22.12.2016).
- Gattorna J. (2006): Supply chains are the business. “Supply Chain Management Review”, https://www.highbeam.com/doc/1G1-152333975.html (access: 12.05.2017).
- Global 500 (2017): http://fortune.com/global500/ (access: 12.05.2017).
- Grean M., Shaw M.J. (2002): Chapter 8. Supply-chain partnership between P&G and Wal-Mart. In: E-Business management: Integration of web technologies with business models. Ed. M.J. Shaw. Kluwer Academic Publishers, Norwell, MA, pp. 155-171.
- Harrison A. (2003): Competing through supply chains. Department of Management Science and Technology, Athens University of Economics and Business, Athens.
- Johnson P.F. (2008): Supply chains management at Wal-Mart. Ivey Management Services, Ivey Publishing, London, Ontario.
- Jones M.A. et al. (2005): The adoption of RFID technology in the retail supply chain. “The Coastal Business Journal”, Vol. 4(1), pp. 29-42.
- Kim S.M., Mahoney J.T. (2006): Collaborative planning, forecasting, and replenishment (CPFR) as a relational contract: An incomplete contracting perspective. http://www.business.illinois.edu/Working_Papers/papers/06-0102.pdf (access: 23.12.2016).
- Krajewski L.J., Ritzman L.P., Malhotra M.K. (2013): Operations management: Processes and supply chains. 10th ed. Prentice Hall, Upper Saddle River, NJ, pp. 431-483.
- Lee H.L. (2004): The triple A supply chain. “Harvard Business Review”, Vol. 82, No. 10, pp. 102-112.
- Manuj I., Mentzer J.T. (2008): Global supply chain risk management. “Journal of Business Logistic”, Vol. 29, No. 1, pp. 133-150.
- Mark K. (2012): Half a century of supply chain management at Wal-Mart. Harvard Business School Press, Boston.
- Magretta J. (2002): Fast, global and entrepreneurial: Supply chain management, Hong Kong style. “Harvard Business Review”, https://hbr.org/1998/09/fast-global-andentrepreneurial-supply-chain-management-hong-kong-style (access: 12.11.2016).
- Narayanan V.G., Raman A. (2004): Aligning incentives in supply chains. “Harvard Business Review”. https://hbr.org/2004/11/aligning-incentives-in-supply-chains (access: 22.11.2016).
- National Research Council (2010): Surviving supply chain integration: Strategies for small manufacturers. National Academy Press, Washington, D.C.
- Natto H. (2014): Wal-Mart supply chain management. “International Journal of Scientific & Engineering Research”, Vol. 5, No. 1, pp. 1023-1026.
- Prater E. et al. (2005): Future impacts of RFID on e-supply chains in grocery retailing. “Supply Chain Management: An International Journal”, Vol. 10, No. 2, pp. 134-142.
- Shin S., Tucci J.E. (2015): Wal-Mart’s dilemma in the 21st century: Sales growth vs. Inventory growth. “The Journal of Applied Business Research”, Vol. 31, No. 1, pp. 37-45.
- Traub T. (2012): Wal-Mart used technology to become supply chain leader. http://www.arkansasbusiness.com/article/85508/wal-mart-used-technology-to-become-supply-chain-leader?page=all (access: 26.11.2016).
- Walmart (2012): 50 years of helping customers save money and live better. 2012 Annual Report, Bentonville.
Publication order reference