Wal-Mart (WMT) is one of the best, if not the best supply chain management companies in the world. Their recent move into India as a wholesales supplier and consultant underscores this strength.
Another strength it plays to is their experience and expertise in buying direct from manufacturers in the U.S. and elsewhere. This will be a similar role they play in the Indian market, which includes somewhere in the 12 million small mom and pop type stores spread across the country.
Raj Jain, president of Wal-Mart India, said concerning where they're looking to start in the country: "These are existing retailers with a few crores (rupees) of turnover and 50-100 stores."
He added that there was a large market for consulting in the country in the retail space because of problems in managing the supply chain.
Like we talked about before, for Wal-Mart this is a great opportunity to offer a secondary strength as a primary service in the country.
It's something to consider in any business. Many businesses create solutions to problems they have in their businesses. Many times these specific solutions can be monetized by offering them to other businesses.
By working within the existing Indian laws, which forbid multi-brand retailers from entering the country, they have the potential to build a huge business that can meet a tremendous need in the country.
Once that happens, who knows if the retail side may open up as well, and explode in tremendous growth.
We should be on the lookout in our companies for things we've worked out for our particular needs that can serve others also. It can at times be as big a money producer as the original service or products we offer.
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