By: Michael E. Martinez

Wal-Mart, the world's largest retailer is making itself known abroad. Their system for "global procurement" contributes to the company's productivity. Wal-Mart purchases goods in bulk from all over the world, purchasing in bulk can also save money. They buy most of one type of product from one place in mass quantities. They then set up retail information systems, that way they can access inventory and stock shelves when they need to.

This system guarantees profits for Wal-Mart from different countries. China for example, is a seller of goods to Wal-Mart. They purchase $6 billion of goods a year from China alone. Wal-Mart is aware that in different countries, the selling of products are handled differently because of their cultures. China may have different products in their store than Great Britain, so Wal-Mart has to find a way to please customers from each different county.

Wal-Mart is not content to being the largest retailer in the United States; they want to be the largest retailer in the world. Wal-Mart is now expanding its services in some markets to include used cars, money orders, and flower deliveries. Some of the Wal-Marts in our area have banks, hair stylists, video rentals, and cafés. I believe Wal-Mart wants to get to the point where you go to one store to do everything.

Their biggest challenge will be to bring all of these extra services to the international markets. Wal-Mart now has more than 1.3 million employees with stores in 9 countries. I believe that Wal-Mart wants to stay ahead of all the other competitors in the industry by at least two steps. By expanding to other countries, they will be able to do this by offering services you wouldn't normally find with other retailers.

Wal-Mart believes that technology helps with their productivity; it keeps links between customers and suppliers. As soon as other countries become up to par with the world in technology, I wouldn't be surprised to see a Wal-Mart going up in their country.