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Wal*Mart SCM


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Wal*Mart SCM

  1. 1. Wal*Mart - Introduction
  2. 2. Differences among discount stores, superstores, Supermarkets, Sam’s club, Hypermarket
  3. 3. Wal*Mart – Phenomenal Distribution
  4. 4. Wal*Mart – Phenomenal Distribution
  5. 5. Wal*Mart – Phenomenal Distribution
  6. 6. Wal*Mart – Phenomenal Distribution
  7. 7. Wal*Mart – Vendor relationships (VMI) Inventory managed by Less physical manufacturer Decision making inventory count pushed up the time supply chain Less time Sustainable finding misdirected Inv. VMI competitive advantage Less time Reduce the entering data distortions in into Cust. Sys. Links partners ordering together and grants authority
  8. 8. The CPFR Model
  9. 9. Forecasting and Replenishment Process Current State RETAILER Retailer POS Data Market/item Create item-level knowledge, store Collect POS Data and forecast and special Create purchase orders planning, item other supporting event calendar (e.g..., for items planning by information promotions, store individual stores openings, item distribution) No Retailer and manufacturer ? Decision - Is manufacturer able discuss other options to meet retailer’s purchase order? MANUFACTURER Yes Marketing Programs and Promotional developed with Input Production planners Forecast drives production from Sales/Marketing (e.g..., validate item-level Product shipped to meet pricing, item additions/deletions) forecast purchase order and market/customer knowledge specifications
  10. 10. Collaborative Planning, Forecasting, and Replenishment Future State Process Overview YES Manufacturer Manufacturer Retailer MRP System Decision - Is exception within tolerance? Exception analysis process Order Forecast Retailer & Manufacturer generate forecast & special event calendar at Retailer item level, and maintain Replenishmen it on the Internet t System Manufacturer Request and Retrieval of event calendar and/or detail Retailer information Manual Collaboration YES Decision - Does message, event NO calendar and/or detail Adjust Item Forecast information explain discrepancy?
  11. 11. Collaborative Planning, Forecasting, & Replenishment Benefits Joint Business Planning Retailer Manufacturer Common Event Calendar Joint Forecast
  12. 12. Various Information Systems used to improve the Supply Chain • Electronic scanning of universal product code (UPC) at the POS , RFID • Ensure accurate pricing • Improve efficiency • Reduce Shrinkage • Improve communications • Satellite system • Data collected and analysed • Observing Merchandise flow, overstock, discount • Video transmissions, credit card authorizations, and inventory control • Retail Link System • Electronic data interchange (EDI) • CPFR • Forecasting • Planning • Replenishing • Shipping applications • Voice based tools and applications • Retail Link system
  13. 13. Wal*Mart – Store Operations
  14. 14. Wal*Mart – Store Operations
  15. 15. An Universal Product Code The major advantages Of RFID are: - The movement of inventory can be tracked - Goods can be received and shipped faster - Ease of predicting product demand - Shoppers can save time - Out of stock situations can be avoided - Shoppers get a better deal as system becomes more efficient - The right products are available at the right stores at the right time - Boost sales An EPC RFID tag used by Wal-Mart
  16. 16. Some EDI benefits are: • Improved customer service • Decreased Operating costs as paper work and clerical tasks are reduced • Eliminated information float as EDI speeds up the delivery of goods and services • More accurate and timely information allows for better control over inventory and reduces safety stocks • Faster account reconciliation lowers accounts payable overhead • Improved cash flow process frees up capital for other investments.
  17. 17. Retail Link • Retail link provides sales and inventory data—by item, store, and day—to vendor partners or suppliers • It contains record of every sale of every individual item at every Wal- Mart store, every hour of the day for the last 2 years.
  18. 18. Benefits of SCM to Wal*Mart  Increasing visibility into all business transaction on a timely basis  Streamlining the physical pick pack process leading to reduced errors and redundant labor  Eliminating charge backs and fines by retailer compliance and permitting access to all data from EDI through shipping  Keeps inventory costs down  Quickly and effectively predict the needs of customers in different areas and from different backgrounds
  19. 19. Benefits of SCM to others Benefits of SCM to other businesses and organizations can be viewed as Streamlined inventories and Cost and Financial reduced costs Reduced errors and redundant labor Increased visibility of all business Retailers transaction Manufacturers Improved return on inventory Improvements investment Distributors Optimized transportation costs, routes, and load times Increase cost savings from outsourcing for low cost materials E.g. Dell and Intel have created an increasingly streamlined supply chain model with mass-customization and customer-direct capabilities. 23
  20. 20. Benefits of SCM to others Benefits of SCM to other businesses and organizations can be viewed as Improved forecast accuracy as well as resource and distribution planning Processes Improved manufacturing and replenishment cycle time Enhanced manufacturing scheduling  Manufacturers  Construction companies Increased effectiveness of planning and decision making  Automotive industry Improvements Improved overall efficiency in production Enhanced a seamless multi-channel shopping Reduced supplier base E.g. Cisco uses the Internet to enable deep process integration of all levels of the extended supply chain. 24
  21. 21. Benefits of SCM to others Benefits of SCM to other businesses and organizations can be viewed as Reduced out-of-stock situations Services Improved order fill rates Increased ship-complete and on-time percentages  Retailers  Service companies E.g. Wal-Mart uses the replenish Improvements model to keep their shelves full and penalize their suppliers for late shipment. 25
  22. 22. • • • • Thank You