An overview of the decision making system in the it systems of Walmart

1. {
IT Systems in
A Decision Information System Assignment
Deepthi (46)
Devyani (47)
Dinesh (48)
Ekankita (50)
Gulrukh (59)
Group 7
Section A, Batch 21

2.  Wal-Mart, incorporated on October 31, 1969, is
engaged in the operation of retail, wholesale
and other units in various formats.
 The company offers its products at Everyday
Low Prices (EDLP)
 Mission: “Saving people money so they can live
better.”
 Vision: “To be the best retailer in the hearts and
minds of consumers and employees.”
Walmart - Introduction

4.  Wal-Mart‘s business strategy is Overall Cost
Leadership, offering their customers great
quality service and products at a lower price
than their competition
 Walmart follows the five forces business
strategy namely buyer power, supplier power,
threat of substitute products and services,
threat of new entrants, and rivalry among
existing competitors
Business Strategy

5.  Revenue of established stores in the U.S which account for 60% of the
company's total sales has declined for 5 consecutive quarters
 Number of customers has fallen six quarters in a row
 Victim of an uneven economic recovery that has benefitted well-heeled
shoppers more than those in the lower -income rungs
 Customers turning to competitors like Amazon and dollar stores for they
hesitate to spend hours in big supercenters
 Major challenges:
 Cash-strapped shoppers
 Price pressure
 Changing shopping habits
Business Challenges

6. Business Processes

7. Support
System
Processes
Warehousing
And Shelf
management
Processes
Supply
Chain
Management
Processes
• Recruitment
&selection
• employee data
base
• PMS
• compensation
through IT
• POS system
(LINUX)
• Magic wand
inventory
management
(Replenishment
device)
• Continuous
replenishment
• VOF (Voice Based
Order Filling)
• JIT
• Sam’s club
• Capacity planning
• Cross docking
• Satellite system
• Bar code and
RFID (Radio
Frequency
Identification)
• Hub and Spoke
• EDI (Electronic
Data
Interchange) for
Procurement
• MPP (Massively
Parallel
Processor)
• CPFR
(Collaborative
Planning
Forecasting and
Replenishment)

8.  NeoVista provides Wal-mart with the Software. Neo
Vista delivers its data mining needs. The Neo Vista
“decision series” was tailored to match the
requirements of the database environment of Wal-
Mart. One important advantage of the implementing
the data-mining tool was that the company was able
to optimize the inventory management.
 The NeoVista Decision Series is enabling Wal-Mart
to look at individual items for individual stores to
determine seasonal sales profiles. This additional
level of detailed analysis is helping us make even
better informed business decisions and helps us
further utilize our data Warehouse.
Hardware, Software &
Database
 In 1996, NCR Corporation announced a multi-million dollar
contract with Wal-Mart to expand its data warehouse. This
redefined Very Large Database (VLDB) in the industry by
growing the largest commercial database system in the world.
 This includes a 32-node WorldMark 5100 Massively Parallel
Processor (MPP) system, Teradata Database for UNIX and
professional services which adds 384 processors and four
terabytes (trillion bytes) of disk storage to Wal-Mart's existing
decision-support system, bringing total disk storage to over 7.5
terabytes.
 This is the equivalent of nearly two billion pages of text. Using
NCR's Teradata database, this decision-support system provides
information on customer buying trends, merchandise volume and
movement in each of its 2945 stores and clubs in six countries.
 The timely availability of this detailed data to merchandising
professionals ensures that stores have the right items in stock
when and where customers want to buy making the foundation of
Wal-marts success.

9. { {Universal Product Code Satellite System
TPS at Wal Mart
 Walmart pushed the
retail industry to adopt
its UPC system
 Enables accurate pricing
 Improve efficiency
 Reduce shrinkage
 Improve
communications

10. MIS at Wal Mart

11.  A number of strategic DSS tools were implemented in Wal
Mart in the 1990s, including the $4 Billion
 7.5 TB of data with 52 weeks of rolling history of transaction
by product, store, supplier and date
 Vendors manage inventory replenishment
 Vendors receive a Profit & Loss statement for the products
they provide to Wal Mart
 Internal employees interact with vendors through the same
platform
 10,000 enquiries, relating to the sale value of $10 Million worth
of transactions every day
retaillink.wal-mart.com
DSS at Wal Mart

12.  Data Driven Value Chain
 Record sales
 Triggers inventory re-order
 Inventory scheduling and delivery
 Enables
 Demand forecast
 Track and predict inventory levels
 Create highly efficient transport routes
 Manage customer relationships
 Manage service logistics
 Supplier Portal Allowing Retail Coverage
 Empowering suppliers with real time data
 Collaborative demand forecast by suppliers
RetailLink – Walmart’s Secret Sauce

13. { {Benefits
 Maximum margin
with lowest
inventory possible
 Operational forecasts
 Provide basis for
executive strategy
 Patterns to help
suppliers sell more
Challenges
 Low inventory with
no out-of-stock
 Boost profits for
higher stock price
 Adapting to changes
in the retail
landscape
Business Benefits and Challenges

14. {
“Supply Chain
Management is moving
the right items to the
right customer at the
right time by the most
efficient means. No one
does that better than Wal
Mart.”
- Retired Army Colonel
Vernon L. Beatty
Expert Opinion

15. Thank You