07 Supply Chain Management

Does Walmart use AI bots to negotiate with their suppliers?

Yes. Walmart uses AI to automate negotiations with “tail-end” suppliers, which account for 20% of its spend on low-value items. This streamlines procurement and reduces manual effort

Which BYD components are made in-house vs. outsourced? Why?

BYD vertically integrates key components like batteries and electric motors to control quality and reduce costs. Outsourcing is used for non-core parts to stay flexible and manage capacity

Does Arc’teryx manufacture some products in Canada? Why?

Yes. Arc’teryx manufactures ~10% of its products at ARC'One in Vancouver to support proprietary designs, rapid prototyping, and quality control for high-performance gear.

Can shipping by air end up being cheaper than by rail?

Surprisingly, yes. When total logistics costs (e.g., damage, inventory holding, speed) are considered, air freight can be more economical despite higher per-unit transport costs.

How can the average time that a product is in a Walmart distribution centre be less than 10 minutes?

Through cross-docking. Products are unloaded and immediately reloaded for outbound shipment, minimizing storage time and reducing handling and inventory costs.

How can slowing down improve supply chain performance?

Slowing down can reduce variability, improve coordination, and lower inventory costs. It supports better forecasting and smoother operations, especially in complex networks.

Why is the power supply for printers and laptops on the cord instead of inside the unit itself?

Externalizing the power supply simplifies product design, reduces heat inside the device, and allows for easier regional customization (e.g., voltage and plug types)

What is a Humanitarian Supply Chain? How many ‘disasters’ occur?

It mobilizes resources to aid communities affected by disasters. In 2024, hundreds of climate-related disasters occurred, with ~75% of IFRC responses targeting extreme weather events.

What is the Reverse Supply Chain?

It involves retrieving products from customers for reuse, recycling, or disposal. Key activities include remarketing, refurbishing, and end-of-life design considerations.

How many mugs can IKEA fit on a pallet?

IKEA optimizes product and packaging design to maximize pallet efficiency. While the exact number varies, their design-for-logistics approach significantly increases pallet density