The company’s founder was Sam Walton Born on 1918 at Oklahoma<br />
By 1969,walton had established 18 Wal-Mart stores.<br />By late 1970s the retail chain had established a pharmacy and an auto service center.<br />In 1980s ,Wal-Mart continued to groom due to huge customer demands in small towns.<br />By 1984,there were 640 Wal-Mart stores in U.S.<br />Wal-Mart suffered a setback in 1992 when Walton died<br />But it continued its growth in the 1990s focusing on overseas stores<br />1992 ,México(joint venture with cifra.<br />1994,Canada(acquired 122 wool co stores from Woolworth)<br />1997,Germany (acquired 21 store of wertkauf).<br />
This phenomenal growth of Wal-Mart reduced cost through efficient “SUPPLY CHAIN MANAGEMENT”<br />
First retailing companies pioneered the retail HUB & SPOKE system.<br /> Goods centrally ordered ,assembled at massive warehouse.HUB from where they were dispatched to the individual stores i.e. SPOKE<br />
Wall-Mart Procurement<br />Sell thing in low price.<br />Procured directly from the manufacturers , by passing all the intermediaries.<br />Procure things from the vendors when product being bought IS NOT AVAILABLE ELSE WHERE AT A LOWER PRICE.<br />Spends time meeting vendors and understanding their cost structure.<br />Making the process transparent<br />
USING EDI FOR PROCUREMENT<br />Computer systems connected to its suppliers.<br /> EDI enables the supplier to download purchase order along with store-to store sales information relating to their products sold<br />
LOGISTIC MANAGEMENT<br />Fast and responsive transportation system.<br />Distribution centers serviced by more than 3500 company owned trucks.<br />Drivers were committed and dedicated to customer service.<br />Hired only experienced drivers who had driven more than 300,000 accident –free miles ,with no major traffic violation.<br />
Finished goods were directly picked up from the manufacturing plat, sorted out and then directly supplied to the customer.<br />Reduced the handling and storage of finished goods.<br />Manufacturer directly forwarded the goods to a place called the “STAGING AREA”.<br />
Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country.<br />Good communication system.<br />Set up its own satellite communication system in 1983.<br />A “HAND HELD COMPUTER” which was linked to in-store terminals through a radio frequency network.<br />Helped them to keep track of the inventory in stores ,deliveries ,and backup merchandise in stock at the distribution centers.<br />
Quick replenishment.<br />Pretty darn quick display.<br />Retail link system. <br />
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