Supply-Chaining - One of the world's flattener (2)

Wal-Mart case study – 3 methods to lower products’ prices
1) Working with manufacturers to get them to cut their costs as much as possible.

2) Working on its supply chain from those manufacturers.

3) Constantly improving information systems - so it knew exactly what customers were exactly buying and could feed that information to all the manufacturers, as the shelves would always be stocked with the right items at the right time.
(Thomas L. Friedman, 2005, pg 158)

Wal-Mart’s application
1) Connect its drivers by radio and satellites – after drivers dropped off at certain store, they could go few miles down the road and pick up goods from a manufacturer so they would not come back empty and this helps to save on delivery charges.

2) Communicate by headphones with minilift trucks drivers – received instructions and being reminded whether were behind or ahead of expectations

3) By implementing a collaborative planning, forecasting, and replenishment (to supply)(CPFR), Wal-Mart began a just-in-time inventory program that reduced carrying costs for both the retailer and its suppliers.

4) RFID-Radio Frequency Identification Microchips, attached to replace bar codes which have to be scanned individually and can get ripped or soiled. RFID is a generic term for technologies that use radio waves to automatically indentify people or object.


In this world a smart and fast global chain is becoming one of the most important ways for a company to distinguish itself from its competitors. (Thomas L. Friedman, 2005, pg 155)
(Thomas L. Friedman, 2005, pg 159, 160, 161)

Source : THE WORLD IS FLAT, Thomas L. Friedman, 2005