Walmart: Science and technology are the primary productive forces!

After studying the case of the Walmart logistics management, I have to say that its success is the organic combination with both good business model and advanced information technology applications. Through the analysis we can find that Walmart fully uses of modern information and communication technologies to build up electronic logistics management system. Including the satellite telecommunication system which surprise me a lot, I think they are the unique company with its own satellite in the retail industry. And the RFID technic was also first widely used in the logistics area by them. Due to these, Walmart not only wins a cost advantage, but more importantly, has got a deeper understanding on customers’ needs and suppliers’ situation through this system, thus makes the relationship between suppliers and customers closer and has improved the speed to respond to the market and the ability to meet customer demands, which has earned a sustained competitive advantage and has been always the leader in the retail industry. Walmart’s development experience tells us that the foundation of modern retail development is modern logistics operation system, and in order to strengthen the foundation, the modern logistics system must rely on modern information and communication technology, we must develop electronic logistics. In comparison, China’s retail sector is still very weak, there is rarely a retail company with a good basis of electronic logistics system. So for that, I want to make some suggestions to the Chinese retail enterprises:

  1. Build up the own distribution center.

With the trend of retail chain stores, logistics distribution centers become increasingly important, it is one of the important sources of enterprises to reduce operating costs.

  1. Use the third party logistics.

With the advancement of technology, the division of production is more and more specific, there have been many companies undertake specialized distribution tasks, some of the chains don’t build own distribution center anymore, instead relying on the socialization distribution centers. Socialization distribution center is particularly applicable in China.

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