Walmart has maintained its low cost leadership place due to its persevered focus on providers. Walmart has one of the crucial biggest supply chains on the earth. Walmart spent over $365 billion to acquire merchandise for its stores in the fiscal year 2015. This economic climate of scale gives the company large bargaining power with its providers. To further reduce the cost and achieve price leadership, Walmart uses cross docking.
In cross docking, inbound shipments from suppliers are unloaded without delay into outbound trailers at distribution centers. Walmart owns 158 distribution facilities and is among the biggest on the planet. Walmart Logistics has a fleet of 6,500 tractors, 55,000 trailers, and more than 7,000 drivers. These innovative options are helping Walmart be triumphant on the pricing front.