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Principles of Logistics Management Essay Example

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Principles of Logistics Management

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In the result, this leads to lowering the prices of products. In this way company is successful to maintain the momentum of ‘everyday low prices. Wal-Mart has developed its just-in-time (JIT) inventory, and, on the other hand, keep the low level of inventory just to meet urgent needs. The inventory management system of Wal-Mart ensures that company has enough of stock to meet daily needs, but keep it as little as possible. Its effective inventory management results in satisfied customers, less cash engaged in warehouse and reducing sales. However, owing to its international contracts of production, rapid production processes, a continuous increase in its product lines make them store a necessary inventory. Wal-Mart tracks its sales, communicates with suppliers, receives data and uses information to ensure the availability of inventory for example products that are sold on seasonal demands. Also, Company has maintained good relationship and effective communication channels so that storeowners must inform when to reorder and purchase.The company with such effective logistic management coordinates its demand estimation with the supply management under an interactive planning, projecting and replenishment process. Every single process is connected through advance technology which involves the central database system, systems regarding point-of-sale and a proper network of satellite. By using the advanced information and communication technology, company has implemented the bar code system of products in the country for the first time by implying the Universal Product Code. These codes help the company to collect and analyze information available at store by devising the Retail link. This retail link is further connected to the global satellite system which helps to project the suppliers demand to distribution centres as well as supplier associations and reflects the sales data to them. Wal-Mart uses its information collected from the cash register and point-of-sale is communicated to all the partners by processing through retail link. Moreover, company has adapted to more advanced technology by using Radio Frequency Identification Tags (RFID) to monitor the inventory and keep the management informed about items that are to be replaced. This technology based information and communication process helped the company to save time, increase inventory turnover, enhance storehouse space (Traub, 2012).Wal-Mart has implemented the cross dock

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