Operations management of Walmart. Know how the company works and functions

2. Wal-Mart Stores, Inc. branded as Walmart, is an American multinational retailer corporation.
The company is the world's third largest public corporation, according to the Fortune Global 500 list in 2012.
It is also the biggest private employer in the world with over two million employees,.
Walmart remains a family-owned business.
It is also one of the world's most valuable companies.
The company was founded by Sam Walton in 1962, incorporated on October 31, 1969.
It publicly traded on the New York Stock Exchange in 1972.

3. HEADQUARTERS--Bentonville,Arkansas.

4. WALMART STORES ACROSS VARIOUS
COUNTRIES
• Walmart has 8,500 stores in 15 countries, under 55 different
names.
• The company operates under the Walmart name in the United
States, including the 50 states and Puerto Rico.
• It operates in Mexico as Walmex.
• In the United Kingdom as Asda, in Japan as Seiyu.
• In India as Best Price.
• It has wholly owned operations in Argentina, Brazil, and Canada.

5. WALMART SLOGAN
Starting slogan: Always Low Prices
New slogan: Save Money. Live Better.(from 2007)

6. To give ordinary folk the
chance to buy the same thing
as rich people
To become the worldwide
leader in retailing

7. What is Operation Management?
Operations Management is about the transformation
of production and operational inputs into "outputs"
that, when distributed, meet the needs of customers.

8. OPERATION STRATEGY

9. Capturing market share with “everyday low
price” strategy.
Cultural adaptation.
Training employees because people are key
to Wal-Mart's business
Buy at less to sell at less.
OPERATION STRATEGY

10. Different shop design for each demographic groups.
All product in one store.
Competence in use of information technology for
logistics system.
Highest customer satisfaction
COMPETITIVE STRATEGY

11. Creating more than 210,000 jobs in the U.S.
Saves working families more than US $2,500 per
year.
Discounting on food alone boosts the welfare of
American shoppers by approx. $ 50 billion per year.
OPERATION STRATEGY FOR THE
DEVELOPMENT OF SOCIETY

12. Introduced new Layout to improve Customer
Experience with faster service.
Always offer unbeatable Prices
Layout of the stores will save customers time as they
shop for everyday necessities
Its Service layout create an open shopping environment
that helps customers find what they are looking for
quickly.
INNOVATIVE SERVICE LAYOUT TO MAKE
SHOPPING EASIER

13. Walmart's operations are organized into three
divisions:
1)Walmart Stores
2)U.S., Sam's Club, and
3)Walmart International.
OPERATING DIVISIONS OF WAL-MART

14. SHELF MANAGEMENT AT WAL-MART

15. • Capacity Planning
The process of determining the production
capacity needed by an organization to meet
changing demands for its products
• Shop Location
USA 50 STATES 4300 OUTLETS
GLOBE 14 COUNTRIES 4081 OUTLETS

16. • Shop Layout
New layout for customer experience.
Wal-Mart supercenters
– a full-service supermarket
Discount stores
– discount department stores
Neighborhood Markets
– Shop for daily necessary goods
Sam’s Club warehouses
– membership based stores

17. • Shop Size
Different size for different stores
• Warehouse Size
Single large warehouse for a single state.

18. PRODUCT AND SERVICE FACTOR

19. • PRICE
Low Price everyday
• SUPPLIERS
Partners with more than 2500 minority-and
women-owned business suppliers.

21. Walmart’s Method of Managing the
Supply Chain

22. • KEY COMPONENTS
1. Vendor Partnerships
2. Cross Docking
3. Distribution Management
4. Technology and Integration

24. • Why is their Supply chain management
superior than others?
• Efficient supply chain
• Deals with suppliers
• Different deals with different customers.
• Different service policies
• Excellent, consistent service at a reasonable
cost

25. JUST IN TIME & RADIO FREQUENCY
IDENTIFICATION

26. 1. Just In Time :
• Lowers holding cost
• Lowers ordering cost
• Wal-Mart has made ordering small batches
with greater frequency a profitable reality.
• Reduces safety stock and EOQ
• Reduces lead time

27. 2. Radio frequency identification
• Keep track of goods at any point in time, and
also tells you where it is.
• Eliminates physical counting of inventory
• Is in line wit JIT.
• As soon as inventory levels go down, Walmart
can re-order.
• Implemented in 2005.

28. BEST PRICE outlet at Punjab

29. Scott Price,President & CEO-
Walmart Asia

30. BEST PRICE Locations
Opened in Amritsar in May 2009 and subsequently in
Zirakpur (Near Chandigarh),
Jalandhar
Kota
Bhopal
Ludhiana
Raipur
Indore
Vijaywada
Meerut, Agra
Lucknow
Jammu
Guntur
Aurangabad
Bathinda
Amravati
Hyderabad and
Rajahmundry.

31. Joint venture between the World’s largest wholesale retailer-
Wal-Mart with Sunil Mittal Bharti Enterprises opening India’s
first warehouse store- Best Price Modern Wholesale.
It serves grocery store owners, fruit and vegetable resellers,
restaurants, farmers and other business owners, including
small manufacturers.
BEST PRICE OUTLET

32. The store sells everything
from bed-sheets to ear buds.
It has come up at an initial
cost of 4.96 million euros.
It provides 500 direct jobs.
It has tie-ups with 30,000
retailers and 8,000 suppliers
across the country.
BEST PRICE OUTLET

33. Bharti Walmart opens Second Best
Price Modern Wholesale Store in
Bhopal,MP.
Bharti Wal-Mart has invested close to
USD 25 Million in Punjab.
They work closely with farmers to
improve the quality of their yield and
increase their remunerations.
Also committed to building a strong and
efficient supply chain that would
benefit the consumer as they save
people money so they can live better.
BEST PRICE OUTLET

34. Spread over 63,000 square feet, the Best Price Modern
Wholesale store at Jalandhar will stock over 5,400 items.
Including a wide range of fresh, frozen and chilled foods,
fruits and vegetables, dry groceries, personal and home care,
hotel and restaurant supplies, clothing, office supplies and
other general merchandise items.
These are available at competitive wholesale prices, allowing
retailers and business owners to lower their cost of
operations.
BEST PRICE OUTLET