Subject Name - SCM

(SUBJECT NAME – SCM)
Subject Code: PG41

Term – IV
PGDM Batch – 2022-2024
Assignment – 01 Submission Date: 03/09/2023
Submitted To: Submitted By:

Prof. Nishant Tyagi Aditya Singh
PGDM22220
SEC - C
1
Q.1 Pick any existing industrial enterprise and study its business operations in
a detailed manner. Draft a use-case highlighting the supply chain of the
organization, and its existing CTS accomplishment status with every possible
stakeholder including vendor, supplier, consumer, intermediaries, etc.
Propose a dynamic model that can act as a relevant solution to the mentioned
problem(s) and can contribute directly or indirectly to the CTS-based revenue
achievement of the organization. After writing the case, if you feel, the current
case study has any shortcomings, list them with a justified reason.
Optional: If you feel your case study needs strategic solutions in the end, you
may develop a 4-quadrants-based Box model for portraying the same.
Ans. Case Study: Optimizing Cost-to-Serve (CTS) for Walmart
Introduction
Walmart is a well-known retail giant that operates thousands of stores worldwide.

While it's been very successful, Walmart faces challenges in managing its costs
while serving customers effectively. This case study looks at how Walmart
currently manages its supply chain operations and suggests ways to make it more
cost-efficient, which is called Cost-to-Serve (CTS). We'll explain this in simple
terms.
How Walmart's Supply Chain Works Now
 Store Operations: Walmart's main job is to get products to its stores so that
people can buy them. This means managing lots of items and making sure
they are in the right place at the right time.
2
 Suppliers: Walmart gets its products from various suppliers, the companies
that make or provide the things it sells. They need to work together to make
sure the right amount of products is available when needed.
 Inventory Management: Walmart has to store products in its warehouses

until they are sent to stores. They want to keep just enough so they don't run
out but not so much that it sits around and costs money.
 Transportation: Walmart has to move products from suppliers to stores.

This means using trucks, ships, and other transportation methods.
To make things better for Walmart, we can:
 Smarter Inventory: Use computer programs to predict which products will

be popular and make sure there are enough of them in stores. This helps
Walmart avoid wasting money on products that don't sell.
 Better Supplier Communication: Create an online system where Walmart

and suppliers can talk quickly to coordinate orders. This helps them work
together efficiently.
 Efficient Transportation: Use technology to find the best routes for trucks
to deliver products to stores. This can save money on fuel and make sure
products arrive on time.
Things to Keep in Mind
 Costs: Making these changes might cost some money, so Walmart needs to
be sure it's worth it in the long run.
3
 Training: Employees and suppliers may need help learning how to use
these new systems.
 Security: When using online systems, it's important to keep information

safe and private.
 Quick Changes: Walmart needs to make these improvements quickly to

keep its stores running smoothly.
Conclusion
By using technology to predict what products people want, improving

communication with suppliers, and finding the best routes for transportation,
Walmart can save money and serve its customers better. This helps Walmart make
more money while keeping its prices low for shoppers.
Certainly, let's develop a 4-quadrant Box model to portray the strategic solutions
for optimizing Cost-to-Serve (CTS) at Walmart:
Box Model for Optimizing CTS at Walmart
In this model, we'll consider two main factors: Cost Impact (low to high) and
Implementation Difficulty (low to high). The goal is to map the proposed strategic
solutions into four quadrants based on these factors.
4
Quadrant 1: Quick Wins (Low Cost Impact, Low Implementation Difficulty)
Smarter Inventory: This solution falls into Quadrant 1. While it may require
some investment in predictive technology, the potential benefits, such as reducing
overstock and avoiding unnecessary costs, are relatively quick to achieve.
Quadrant 2: Strategic Investments (High Cost Impact, Low Implementation
Difficulty)
Better Supplier Communication: This solution falls into Quadrant 2.

Implementing an online communication system with suppliers might require some
financial investment but is relatively straightforward. The potential cost savings
and efficiency improvements make it a strategic investment.
Quadrant 3: High-Payoff Challenges (High Cost Impact, High
Implementation Difficulty)
Efficient Transportation: This solution falls into Quadrant 3. While optimizing

transportation can lead to significant cost savings and operational improvements, it
can be challenging and costly to implement. It involves complex logistics and
potentially substantial technology investments.
Quadrant 4: Caution and Consideration (Low Cost Impact, High
Implementation Difficulty)
N/A: In this case study, there isn't a proposed solution that falls into Quadrant 4.
All the suggested solutions aim to have a meaningful impact on CTS, and none are
overly complex without corresponding benefits.
5
Conclusion:
The Box model helps visualize the strategic solutions for optimizing CTS at
Walmart:
 Quick Wins: Prioritize "Smarter Inventory" as it offers a quick and

relatively straightforward solution with cost-saving potential.
 Strategic Investments: Consider investing in "Better Supplier

Communication" to improve coordination with suppliers, which can lead to
long-term cost savings.
 High-Payoff Challenges: Carefully evaluate the potential benefits and costs

of "Efficient Transportation" as it offers substantial improvements but comes
with complexities and expenses.
By categorizing the solutions within this model, Walmart can develop a clear
strategy for optimizing its CTS while considering cost and implementation
challenges.

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Subject Code: PG41

Assignment – 01 Submission Date: 03/09/2023

Submitted To: Submitted By:

Ans. Case Study: Optimizing Cost-to-Serve (CTS) for Walmart

Walmart is a well-known retail giant that operates thousands of stores worldwide.

How Walmart's Supply Chain Works Now

 Inventory Management: Walmart has to store products in its warehouses

 Transportation: Walmart has to move products from suppliers to stores.

To make things better for Walmart, we can:

 Smarter Inventory: Use computer programs to predict which products will

 Better Supplier Communication: Create an online system where Walmart

Things to Keep in Mind

 Security: When using online systems, it's important to keep information

 Quick Changes: Walmart needs to make these improvements quickly to

By using technology to predict what products people want, improving

Box Model for Optimizing CTS at Walmart

Better Supplier Communication: This solution falls into Quadrant 2.

Efficient Transportation: This solution falls into Quadrant 3. While optimizing

 Quick Wins: Prioritize "Smarter Inventory" as it offers a quick and

 Strategic Investments: Consider investing in "Better Supplier

 High-Payoff Challenges: Carefully evaluate the potential benefits and costs

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