Barriers for Implementing advanced logistic system in retail : Comparison between Wal-Mart and a Chinese company

Abstract: With the rapid growth of China economy, more and more companies search a way to raise their local business to an international level. Wal-Mart is the best representative of advanced supply chain management. With decades of developing, Wal-Mart establishes an enviable supply chain management with nearly zero inventory and advanced information technology system. Hualian is the biggest supermarket chain in China, who tries to gain competitive advantage from Wal-Mart supply chain pattern. Meanwhile, beside Hualian, Wal-Mart's supply chain pattern is also meaningful to other companies. Hence, trying to figure out how Wal-Mart manages its supply chain is useful. The main purpose is to find out requirement and barriers for implementing Wal-Mart’s advanced logistics system in a Chinese retail company. By comparing Wal-Mart supply chain management with Hualian, this illustration will perfectly make a demonstration for Chinese companies. Since Hualian is the biggest supermarket chain company in China, this comparison is resourceful. This paper will finally illustrate how Wal-Mart does its supply chain management, and what barriers and benefits Chinese companies will meet while implementing. Primary data and secondary data have been used in the comparison. Additionally, qualitative method will be applied for purchasing, and quantitative method will be used for distribution analysis. Although Hualian is the biggest supermarket chain company in China, it still has a distance from Wal-Mart whatever on information system or on scales. Implementing advanced logistic supply chain management eventually will benefit Hualian a lot; however, barriers prior to benefits are huge obstacles for Hualian and its suppliers.