The report reflects what we learned from GBMP 517 and uses that knowledge to provide recommendation for improving the supply chain management process of Wal-Mart Stores, Inc. Canadian division Walmart Canada Corp.
3. Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Walmart) operates retail stores in
various formats across the world. The retail formats
operated by Walmart include discount stores,
supercenters, neighborhood markets and other small
store formats.
Walmart is headquartered in Bentonville, Arkansas.
4. Wal-Mart Stores, Inc.
Internationally, the company has presence in Canada,
Argentina, Brazil, Chile, Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua, China, India, Japan,
Mexico, the UK and Africa.
Walmart Canada Corp. is the Canadian division of
Walmart.
5. Walmart’s Financial Status
Walmart recorded revenues of $469,162 million in
FY2013, an increase of 5% over FY2012.
The operating profit of the company was $27,801 million
in FY2013, an increase of 4.7% over FY2012.
The net profit was $16,999 million in FY2013, an
increase of 8.3% over FY2012.
6. Walmart Canada Corp.
Walmart Discount Stores
Walmart Discount Stores
are discount department
stores with an average store
covering about 102,000
square feet.
Walmart Discount Stores
carry limited grocery items.
7. Walmart Canada Corp.
Walmart Supercenters
With the success of both Walmart
in Canada and Walmart
Supercenters in the United
States, Supercentres concept was
introduced in Canada.
Walmart Supercentres stock
everything a Walmart Discount
Store does, and also include a
full-service supermarket.
9. Walmart’s Supply Chain
Walmart uses a 60-foot custom build trailer that allows
shipping of 30% more products and helps Walmart
achieve it’s sustainability goals.
Walmart tries to minimize inventory through JIT activities.
For automatic replenishment and VMI, Walmart uses
‘Inforem’ system; a software developed by IBM.
10. Walmart’s Supply Chain
Contd.
Delivery of the product from any vendor to a Walmart
store is either directly or through a distribution center
(DC).
Decision is made on the basis of DEMAND and OUT-
BOUND LOGISTICS. In-Bound logistics is not
considered.
11. Walmart’s Supply Chain
Contd.
If the product is sent to a distribution center, the product
is processed and sent directly to the store.
No inventory is stored at the distribution center.
Distribution Centers uses RFID to identify and segregate
products.
16. Recommendations
Walmart could use RFID technology to maintain an
accurate inventory of the items that are replenished in the
stores on a regular basis, which could lead to an increase
in sales of those items.
Same technology maybe extended back to e-commerce
application.
17. Recommendations Contd.
By effectively implementing Electronic Data Interchange
(EDI) and bar code scanning, Walmart could use it as
potential fulfillment centers for orders received on the
Web or from mobile devices.
Walmart could control and improve business processes
based on real-time performance data.