Task 1
1. As a supplier for Wal-Mart, what decisions you need to consider before making the business with Wal-Mart regarding to its supply chain management?
If I want to make the business with Wal-Mart, I should consider several factors. The first thing is the price. The Wal-Mart succeeds for many years in the supermarket industry because low price enter the market. Therefore, I should consider whether my price meets the requirement of Wal-Mart. In order to obtain the lowest price, Wal-Mart adopts open bidding to the world, their purchase embranchments spread all over the South American, Europe, Asian and so on, and they build up their competitive advantage of price due to economic globalization. Wal-Mart insists on open and transparent competition mode, in the same condition, they choose the lowest price supplier to make the business. Wal-Mart rely on their strength obtain bargaining power. Also Wal-Mart purchase goods from manufacturer to avoid some intermediate links. So I if can cooperate with Wal-Mart, I should confer with my raw material supplier to reach a better price for us. So Wal-Mart put the pressure to all suppliers. The next key factor is the quality. Wal-Mart requires their suppliers that the product must attain the standard of government regulation. Wal-Mart will supervise supplier’s processing room and transportation process. Also, the professional staff check selling food hygiene standard. Wal-Mart has also attached great importance to environmental protection products; they will waste discharge of wastewater treatment plant and toxic materials review, whether they attain certification of environmental protection. Also, the quantity is more important. I must consider whether my capacity can satisfied the demand of Wall-Mart. If more than three times cannot meet the needs of Wal-Mart, then Wall-Mart will cease the cooperation with my