Most important transportation in supply chain for Wal-Mart

Running Head: Business and Marketing
Transportation
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Transportation
Most important transportation in supply chain for Wal-Mart
The most important transportation in supply chain for Wal-Mart is water transport. This is due to the fact that it engages in retailing practices which extend globally (Gilmore, 2002). Water transport which may also be looked upon as ocean method of transport is usually regarded as important within supply chain in Wal-Mart due to the fact that other transport ways only become effective when the company intends to serve individuals within its region. For effective global service extension, ocean transport turns out to be more suitable (Trunick, 2000). Supply chain in this case may be looked upon as all operations which are associated with transformation and flow of services and goods from stage of unprocessed materials through to customers or end users. The ability for Wal-Mart to successfully seek ways of trimming down costs associated with transport has promoted preferred objectives realization (Milmo, 2003). One would therefore be very right to put to light that Wal-Mart’s phenomenal growth is due to persistent cost reduction and concentration on customer requirements through efficient management practices within supply chain.
Different transportation modes mix which Wal-Mart could use for efficiency improvement
Wal-Mart has always sought methods of ensuring that costs associated with transportation are trimmed down substantially (MacDonald, 2007). This is due to the fact that the company aims at realizing highest possible returns. Costs associated with transport extensively influence experienced costs due to the fact that they are among major costs which are experienced. This has an implication that over all corporate and supply chain components, transportation costs make up a significant component (Boyer, 2005). It is apparent that transport cost rising effects have over time been felt as a result of modifications in supply chains which are of high velocity and also order types. Technology enablement and transportation process improvement are mostly used by Wal-Mart supply chain outlay and quality improvement, customer satisfaction and consistency (Gilmore, 2002).It is evident that companies have the capacity to reduce transport outlay through execution effectiveness and shipment optimization improvement while concurrently perking up customer service. It has been found out that companies make every effort to become efficient in leadership management of supply chains so as to be able to effectively control their costs (Trunick, 2000). The various transportation modes mix which Wal-Mart could use for efficiency improvement may be explained as follows.
For instance, use of logistics and transportation has the capacity to enable Wal-Mart reach the supply chain levels which are looked upon as world class (Gilmore, 2002). The outcome here is th...