Presentation on Supply Chain management at Wal-Mart

1. Submitted by:
Rahul Chanda
160103106

2. Business based
on discount
retailing
Strong power
over suppliers
Integrated
logistics system
for real time data
“hub and spoke”
design for
distribution
Use of “Back-
haul”, VMI for
inventory
management
EDLP for
attracting
customers
without ads
20% revenue
generation from
private labels
RFID and Remix
for reducing out
of stock rate

3. Suppliers’
Warehouses
Distribution
Centers
Stores
Costal
Distribution
Center
Back-Haul
Distance <= 130 miles
P&G
Uni-
lever
Nestle
Foreign
Markets

4. Strong Distribution Channel
Private fleet of trucks
Low Supplier power
Stores tailored as per community
needs
State of art technology
Stores located in Low rent areas
Unattractive to HNIs
High exit barrier from
international markets
Commercial workers’ union’s anti-
Walmart’s campaign
Political vendetta
Unwanted press coverage
Sale of private labels
Favorable business environments
in emerging markets
Strength Weakness
Opportunities Threats

5. General merchandise store
18%
Food and
beverages
18%
food services and
drinking places
14%
gasoline
14%
building materials and
gardening equip
12%
furniture, home
furnishing,electronic
appliances
7%
health and personal
care
7%
clothing and clothing
accessories
7%
sporting goods,
hobby, book, music
3%
*Total Industry size
= US$2.8 trillion

6. Segment-wise ITR
0
2
4
6
8
10
12
14
16
Analysis
 Grocery has the highest ITR and
General Merchandise has a very low
ITR
 Thus Walmart which falls in the
segment of General Merchandise and
grocery should have higher grocery
inventory in order to increase
revenue

7. Albertsons Inc.
6%
Costco Wholesale
Corp.
8%Federated Department
Stores
4%
Gap Inc.
3%
Kroger Co.
9%
Sears Holdings Corp.
8%
Safeway Inc.
6%
Target Corp.
8%
Wal-Mart Stores
48%
Share of total sales (2005)
Albertsons Inc.
Costco Wholesale Corp.
Federated Department Stores
Gap Inc.
Kroger Co.
Sears Holdings Corp.
Safeway Inc.
Target Corp.
Wal-Mart Stores

8. -6
-4
-2
0
2
4
6
8
Albertsons Inc. Costco Wholesale
Corp.
Federated
Department
Stores
Gap Inc. Kroger Co. Sears Holdings
Corp.
Safeway Inc. Target Corp. Wal-Mart US
Stores
Wal-Mart Sam
Club US Stores
Sales growth of US Retailers

9.  Favour memberships since Sam Club stores have higher sales growth
 Emergency back-up inventories can be held at stores for fast moving goods
 Dedicated shipments for fast selling items will save time in sorting

10.  Integrate with suppliers to increase supply chain efficiency
 Use of technology to have real time information of shipments
 Use Business intelligence software to forecast demands
 Increase engagement of suppliers in inventory management