Final answer:
Managers can use Wal-Mart as a benchmark to evaluate their performance in supply chain management. Wal-Mart's efficient supply chain has both positive aspects, such as cost savings, and negative implications for local economies and businesses. Consideration of both efficiency and economic impact is important when analyzing supply chain practices.
Step-by-step explanation:
Wal-Mart is known for its expertise in supply chain management. Managers may use Wal-Mart as a benchmark to evaluate their current performance in this area. As a benchmark, Wal-Mart provides a reference point for other companies to measure their own supply chain effectiveness against. This can be particularly relevant when considering Wal-Mart's ability to leverage economies of scale, impacting local economies and businesses. While Wal-Mart achieves low costs and efficiencies, it is also criticized for its effect on small towns and local businesses, often referred to as Wal-Martization, due to its impact on local economies, wages, and job benefits.
While assessing supply chain management, it is essential for managers to not only consider cost efficiency but also the broader economic impact of their practices. As Wal-Mart competes on a large scale, smaller firms, like a local deli, have to decide on their production models and cost structures to remain competitive while considering the implications on their community and local economy.