Comparison of Supply Chain Management Practices Essay

This report provides a comparison of the supply chain management practices of Wal-Mart and Toyota. Comparison was done after researching, examining, and analysing each company’s supply chain management practices, in relation to each company’s values and philosophy. Comparison was done in five sections, by examining strategic alliances, procurement and outsourcing, challenges and risks, sustainable strategies, and efficient supply chains in relation to technology. Additional figures and references used can be found in the appendix and reference list. Comparison of the two supply chain management practices showed that despite being from different industries, with different company philosophies, Wal-Mart and Toyota both have similarities†¦show more content†¦These practices ensure production and distribution of merchandise in the right quantities, locations, and time. Efficient supply chain management can provide a source of competitive advantage to an organisation (Christopher, 2012). In the case of Wal-Mart, supply chain management practices are targeted towards lowering cost price, the basis of Wal-Mart’s competitive strategy. This is done by avoiding unnecessary middlemen and seeking to purchase products directly from manufacturers. As a large retailer, Wal-Mart is also able to utilise buyer power to achieve a supply chain that is more efficient and low-cost (Basker, 2007). Supply chain management practices for Toyota are integrated into the Toyota Production System (TPS). TPS is a combination of organizational philosophies, and practices, focusing on relationships and quality. Toyota achieves this by producing vehicles Just In Time (JIT), to reduce in-process inventory and associated carrying costs, as well as increasing flexibility. This also reduces overburden and inconsistency in the supply chain, and cuts wastage (Gross McInnis, 2003). Toyota thus achieves efficiency and low-cost through the streamlining of the supply chain processes. Each company has different types of supply chain practices. Wal-Mart manages their supply chain by leveraging their buyer power for a better negotiating position, and shortensShow MoreRelatedThe Main Influences On Operation Management1112 Words   |  5 PagesOperations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. The main influences on operation management include; ï  ¶ Globalisation ï  ¶ Technology ï  ¶ Quality expectation ï  ¶ Cost-based competition ï  ¶ Government policies ï  ¶ Legal regulation ï  ¶ Environmental sustainability ï  ¶ Cooperate social responsibility (CSR) Globalisation Globalisation is the change in a businessRead MoreSupply Chain Management1259 Words   |  5 PagesIntroduction Supply chain management is a valuable practice whose purpose is to offer businesses a competitive advantage in the market place. 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