Logistics
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How can Wal-mart logistical system be improved?
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How can Wal-mart logistical system be improved?
There are several ways in which logistical system at Wal-Mart can be improved. The improvement emerges from the strategy of Wal-Mart. The company strives to reduce costs. It can further decrease its costs and increase its revenues by decreasing the inventory carried as well as reducing stock outs.
The first step that Wal-Mart needs to take is to locate its warehouses in such a way that the delivery times to its stores are improved. The current warehouse locations do not increase the ease of delivery, shipping, and distribution to different stores in the area. Wal-Mart warehouses have been located on the basis of past locations. Wal-Mart should consider locating its warehouses in places where the inbound cost is minimum and the out bound distance to its stores is also lowest. Further, Wal-Mart should locate its warehouses in places where the operation cost of ...
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