The Distribution and Logistics System Adopted By Wal-Mart - Essay Example

This research will begin with the statement that Wal-Mart has 158 centers of distribution globally. These centers of distribution are exceedingly automated and function 24 every day. Every center is more than one million square feet big. The full conveyor belts length within each center is projected to be five miles. There is a totality of seven thousand drivers, 55,000 trailers, and 6,500 tractors. Every distribution center sustains about ninety to one hundred stores, in the expanse of two hundred miles.

While considering the growth of trade to a novel area, Wal-Mart has to select a distribution center locality. This location is required to be where ninety to one hundred storehouses have the aptitude to be constructed around. No register is amassed at the centers of distribution given that Wal-Mart utilizes the “hub-and-spoke” system of distribution. Merchandise is picked up straight from the producers by a 6,500 motor vehicles fleet. They have organized at the hubs afterward and dispensed to storehouse in one or two days.

With particular goods or for unique orders, the corporation also makes the most of the manufacturers’ system of delivery to distribute the merchandise straight from the stockrooms to the stores. Wal-Mart has utilized Radio frequency identification technology, which allows the company to have the aptitude to track merchandise through the chain of supply. An RFID structure is made up of three major components, which are a label, a reader, as well as a central processing unit system. These labels are typically capable of stocking up to 2 kilobytes of data.

The stored information may take account of product recognition, the manufacturing time, and the cost of the merchandise. These labels can later be attached independently to the physical merchandise itself or even to the merchandise packaging. Whereas the valuable data is stored within the label, it requires a reader so that it can be able to detect, gather, and make sense of the information. Lastly, a central processing unit system is utilized to interpret, sort out, and amass the gathered information in a significant manner.

Wal-Mart’s technology helps the company to examine the general system well-being, recognizing bottlenecks and additional potentially helpful information. RFID labels are eye-catching since they are effortlessly read and are able to be read this makes it easier for Wal-Mart to be effective in their services.