Walmart made properly and planned accordingly to increase

Walmart is known for having one of the most efficient supply
chain’s in the world stocking products in 70 countries while operating over
than 11,000 stores and managing about ~32 billion in inventory (Tradegecko 1). Their
sourcing decisions helps to reduce their inventory holding costs, manage their
inventory levels and help raise profits. Knowing who your suppliers are and
managing them effectively along with coordination, communication, and trust
with their sourcing decisions leads to increased revenues and greater profits
for the firm. Economies of scale can be optimized if sourcing decisions are
made properly and planned accordingly to increase sales and reduce holding
costs. The collaboration between member firms can lead to a reduction in flow
time of inventory and help the inventory get out of the door in the quickest
possible way without stocking out.

Vendor Management Inventory (VMI) puts the management process on the
manufacturer’s themselves to control their inventory for Walmart stores. Sourcing
decisions can help increase profitability, communications and cooperation
promoting an environment where manufacturers want to provide their goods to
firms such as Walmart. Their sourcing decisions help track inventory, manage
costs, and share information accurately and quickly engages Walmart and their
constituents in a health relationship pushing responsiveness amongst the

also instilled a Responsible Sourcing initiative that focuses on the suppliers
they use, accessing their risks and third-party risks, while ensuring their
devotion to keep their manufacturing and distribution facilities up-to-date,
clean, and friendly through external audits and investigations. They make sure
all their sourcing decisions are based on the desire for excellence, acting
with integrity, and providing the best overall service to their customers.

Walmart has well defined policies and facility expectations outlining their
wants and desires for sourcing decisions. They keep their sources accountable
for their decisions via the Responsible Sourcing initiative also help in
training initiatives and showing their own responsibility efforts to their
manufacturers. Maintaining positive and beneficial relationships with their
manufacturers helps them succeed throughout their supply chain initiatives as
whole taking a unique approach that other companies and firms do not capitalize
on. Managing supply chain inefficiencies are crucial to the success from
positive sourcing decisions; Walmart is an example of a company whose policies
and contingencies ensure overall success.