PROCUREMENT
It always emphasized the need to reduce its purchasing costs
procured goods directly from manufacturers, bypassing all
intermediaries.
tough negotiator on prices- the products being bought were not
available elsewhere at a lower price.
Wal-Mart was able to provide replenishments within two days
(on an average) against at least five days for competitors.
DISTRIBUTION
Walmart has around 120 distribution centers around US.
Goods meant for distribution within the country arrived in pallets,
while imported goods arrived in re-usable boxes or cases.
Some suppliers delivered goods directly to the stores.
85% of the goods which were available at the stores passed
through the distribution centers.
Employees had an access to real-time information regarding the
inventory levels of all the products in the center.
He has to make two scans _ one to identify the pallet, and the
other to identify the location of stock
Different barcodes are used to label different products,
shelves and bins in a center.
The hand-held computer guides the employee with regard to
the location of a particular product from a particular bin or
shelf in the center.
The quantity of the product required from the center is
entered into the hand-held computer by the employee and
then the computer updates the information on the main
server.
Logistics Management:
The distribution centers are serviced by more than 3,500 company
owned trucks.
These dedicated truck fleets shipped goods from DC’s to the stores
within two days and replenish the store shelves twice a week.
Private Fleet Driver Handbook- purpose is to educate the drivers with
regard to the code of conduct.
These retail stores were considered as customers by the distribution
centers.
Coordinators give information to the driver as to what is the expected
time of arrival or delivery of the goods .
There was a gap of two hours between unloading of each
trailer.
Wal-Mart also invented unique “Cross-Docking” technique.
This reduced cost of sales and made everyday low prices
possible.
reduction in lead time, speedy inventory turnover, accurate
forecast of inventory levels, reduction in safety stock,
reduction in the dependency of the distribution center,
reduction in errors.
INVENTORY MANAGEMENT
Wal mart used in IT and communications systems to
effectively track sales and merchandise inventories in stores.
Wal-Mart has its own satellite communication system