Presented By
Divya Boddu (07) Nitika Singh(22) Dhaval Parmar(25) Rishika Mittal(30) Sachin Lakade(32) Raj Saxena(35) Swati Randhawa (42) Zahid Anwar (48)
About Wal-Mart
Founded in 1962, with the opening of the first Wal-
in 1970 and were listed on the New York Stock Exchange two years later.
About Wal-Mart
Today, Wal-Mart. Servers Customers and members more than 200 million times per week at more than 8,692 retail units under 55 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Wal-Mart employs 2.1 million associates worldwide.
Wal-Mart is ranked first among retailers in Fortune Magazines 2010 Most Admired Companies survey.
Wal-Mart has established critical strategies in multiple functional areas to hit its goals for supply chain management excellence: v v v v
retailing companies in the world to centralize its distribution system, pioneering the retail huband-spoke system. assembled at a massive warehouse, known as distribution center (hub), from where they were dispatched to the individual stores (spoke).
achieve significant cost advantages by the centralized purchasing of goods in huge quantities and distributing them through its own logistics infrastructure to the retail stores spread across the U.S.
Wal-Marts Procurement
Wal-Mart emphasized the need to reduce purchasing
fully confident that the products being bought is not available else where at a lower price.
Wal-Marts Procurement
Wal-Mart
spends a significant amount of time meeting vendors and understanding their cost structure including the suppliers point of purchase. no early or late shipment is accepted. (eg Levis) certain that the manufacturers are doing their best to cut down costs.
orders along with store-to-store sales information relating to their products sold.
products, the suppliers shipped the required goods to Wal-Marts distribution centers.
Logistics Management
An
important feature of Wal-Marts logistics infrastructure was its fast and responsive transportation system. 3500 company owned trucks.
transporting unsold merchandise on trucks that would otherwise be empty.(private fleet acts as forhire carrier)
Logistics Management
Wal-Mart believed that it needed drivers who were
driven more than 300,000 accident-free miles, with no major traffic violation.
Cross-docking
To make its distribution process more efficient,
picked up from the manufacturing plant, sorted out and then directly supplied to the customers.
Cross-docking
The system reduced the handling and storage of
finished goods, virtually eliminating the role of the distribution centers and stores. place called the staging area.
The manufacturer directly forwarded the goods to a The goods were packed here according to the orders
received from different stores and then directly sent to the respective customers.
Inventory Management
Wal-Mart
invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. good communication system.
Inventory Management
Wal-Mart
was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price markdowns. Wal-Mart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels.
Inventory Management
Employees at the stores had the Magic Wand, a
hand-held computer which was linked to instore terminals through a radio frequency network.
These helped them to keep track of the inventory in
Inventory Management
The order management and store replenishment of
goods were entirely executed with the help of computers through the Point-of-Sales (POS) system.
Through this system, it was possible to monitor and
track the sales and merchandise stock levels on the store shelves.
provided with a microphone/speaker headset, connected to the portable (VOF) system that could be worn on waist belt. the distribution centers.
could respond to a variety of requests such as providing product detail (type, price, barcode number, etc.)
mispicks and product labeling costs since the system did not require paper lists and labels to be affixed on the goods.
between 40,000 to 200,000 square feet, movement of goods within the store was an important part of logistics operations.
Wal-Mart made significant investments in IT to
store-ready displays called pretty darn quick (PDQ) displays. the stores ready to be boarded on the racks.
Goods were packed in PDQ displays that arrived at Wal-Marts employees could directly replace the
empty racks at the stores with fully packed racks, instead of refilling each and every item at the racks.
$4
used the retail link system to monitor the sales of their goods at stores and replenish inventories. day) were processed through this system.
The
company used Massively Parallel Processor (MPP) computer system to track the movement of goods and stock levels. passed on through an communication system. advanced satellite
CPFR
By the mid 1990s, Retail Link had evolved to not
suppliers on a real-time basis by using the Internet to jointly determine product-wise demand forecast. partners to share forecasts and results data through the Internet, in order to reduce inventory costs while at the same time, enhancing product availability across the supply chain.
initiative aimed at a mutually beneficial collaboration between Wal-Mart and its suppliers, its actual implementation required huge investments in time and money. implement CPFR complained that a significant amount of time had to be spent on developing forecasts and analyzing sales data.
suppliers to switch over from the existing Value Added Networks (VAN) EDI to web enabled EDI. customers.
VANs route and manage EDI messages for their By implementing web-EDI, Wal-Mart can save
RFID Technology
(Radio Frequency Identification)
In efforts to implement new technologies to
reduce costs and increase the efficiency, in July 2003, Wal-Mart asked its top 100 suppliers to be RFID compliant by January, 2005. with RFID technology.
Wal-Mart planned to replace bar-code technology The company believed that this replacement
would reduce its supply chain management costs and enhance efficiency.
RFID Technology
(Radio Frequency Identification)
Because of the implementation of RFID, employees
were no longer required to physically scan the bar codes of goods entering the stores and distribution centers, saving labor cost and time.
Wal-Mart expected that RFID would reduce the
RFID Technology
(Radio Frequency Identification)
Although Wal-Mart was optimistic about the benefits of
RFID, analysts felt that it would impose a heavy burden on its suppliers. to incur an estimated $20 Million.
To make themselves RFID compliant, the suppliers needed Of this, an estimated %50 would be spent on integrating the
Mart announced an agreement with Bharti Enterprises to establish a joint venture (50-50), Bharti Wal-Mart Private Limited, for wholesale cash-and-carry and back-end supply chain management operations in India.
Global Procurement (GP) hub for the sourcing of merchandise from India and Sri Lanka to Walmart stores and Sams Clubs globally
vIncreasing visibility into all business transaction on a timely basis v vStreamlining the physical pick pack process leading to reduced errors