4 Ways Walmart and Dell supply chains differ in supply chain management | 2022

Describe the differences between the supply chains for the retail business of Walmart and Dell‍

Dell has been operating as a retailer since its inception. With the rise in online shopping and e-commerce, Dell is also leveraging this to become a fast-moving consumer goods (FMCG) retail business. Dell operates an FMCG business with various FMCG outlets across the country. To operate an FMCCHQ model, you need a supply chain that runs from manufacturer to end customer in a cost-effective manner to meet customer demand at the most economical costs. Read on for more details about how the two organizations supply chain works and the major differences between Walmart’s and Dell’s supply chains.

What is the supply chain of a retailer?

The supply chain or a supply chain management is a series of activities that lead from raw materials to finished goods. It is a key part of any business because it involves moving and storing goods. Put simply, the supply chain is the process that connects the raw materials to the finished products. This chain includes the raw materials (such as cotton and oil), the production process (such as extracting oil from cotton), and the distribution and sale of the goods once they’re produced.

For example, a retail store might buy its cotton from a supplier, which is then processed into yarn and then woven into fabric. The fabric is then cut, sewn, and finished into a T-shirt. The whole supply chain process takes time, with raw materials being transformed into finished goods at each step along the way.

Walmart’s supply chain management

Walmart’s supply chain management consists of various stages where the goods are produced, transported, and delivered to the store’s distribution centers. Walmart's approach entails the store’s distribution centers, goods are sorted, packed, and then transported to stores. Goods are then loaded into a truck and driven to a Walmart store. After the goods are unloaded, the truck is driven back to the distribution center with the goods being unloaded at the next store.

Walmart’s supply chain stages

Walmart’s supply chain consists of the following stages. - Raw materials: Walmart sources its goods from various suppliers at different stages of the supply chain.

- Production: Products are made at various factories, where workers create goods like clothing, food, furniture, etc.

- Distribution: The products are transported from the factories to the stores by trucks.

- Sourcing and branding: Products are branded and stocked with different goods at different stages of the supply chain.

Walmart’s supply chain has been highly criticized by competitors, as well as by consumers who believe that Walmart is using its market power to maximize profits, regardless of whether or not the company achieves any of its stated goals. The company has been accused of engaging in illegal price dumping and price discrimination, which means it is setting prices above what other companies charge for similar products.

For example, some customers pay $100 for a computer mouse but pay only $30 for an identical product at Walmart.com.

Dell’s supply chain management

Dell company supply chain starts with the raw materials. These goods, such as the cotton, are sourced from different mills and port facilities in the country. The cotton is then transported to the various Dell factories across the country. There, it is converted into yarn, woven into fabric, and then stitched into various goods. The goods are then branded and then stocked in storage. The goods are then transported to distribution centers, where they are sorted, packed, and then transported to the stores.

Dell supply chain stages

The Dell supply chain consists of the following stages.

- Raw materials: Dell sources its goods from various mills and port facilities in the country.

- Production: The goods are converted into yarn, fabric, and then into different goods.

- Distribution: The goods are sorted, packed, and transported to the stores.

- Sourcing and branding: The goods are branded and stocked in the stores.

How Walmart and Dell's Supply Chains Differ?

Differences

There are a number of key differences between Walmart’s and Dell’s supply chains. Let’s take a closer look at these key differences between the two supply chains.

- Raw Materials: Walmart sources its goods from various suppliers at different stages of the supply chain. On the other hand, Dell sources its goods from various mills and port facilities.

- Production: Dell’s production is done in various factories across the country. The goods are made in these factories, where workers create goods like clothing, food, furniture, etc. On the other hand, Walmart’s production is done in various factories across the country. The goods are made in these factories, where workers create TVs, computers, watches, etc.

- Distribution: Dell’s distribution is done by trucks, while Walmart’s distribution is mostly done by trucks. However, both Dell and Walmart’s distribution is done by trucks and trains.

- Sourcing and branding: Dell’s goods are sourced from various suppliers and are then branded. The goods are then stocked in the stores. On the other hand, Walmart’s goods are sourced from various suppliers and are then branded and stocked in the stores.

Conclusion

Both Walmart and Dell are retailers that are striving to stay relevant in the modern world. With the rise in online shopping, it becomes even more important for retailers to operate an online store as well as an offline store. To stay relevant, both these retailers are trying to leverage the advantages of their respective supply chains. While Walmart’s supply chain management is predominantly focused on in-store sales, Dell’s supply chain is primarily focused on building a robust e-commerce presence. These key differences between the two supply chains highlight the importance of a robust supply chain in terms of both cost and efficiency. If you are interested in learning more about how these two different retailers are operating their supply chains, then choose an example from one of them and compare their supply chains.