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Supply Chain Management - Walmart

Walmart facts, SCM, Partnership with P&G, Big Bazaar in India

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Supply Chain Management - Walmart

  1. 1. Wal-Mart’s Supply Chain Management MEMBERS
  2. 2. Presentation coverage  Some Walmart Facts  Global Presence  Supply Chain Management at Walmart  Walmart Supply Chain Flow Chart  Supply Chain elements at Walmart  Walmart – P&G channel partnership  SCM – enabled partnership in India  Supply Chain Management at Big Bazar  Inwarding Process at Warehouse  Outwarding Process at Warehouse  Unique Features in Big Bazar -Uniliver Partnership
  3. 3. Some Walmart Facts  Walmart averages a profit of $1.8 million every hour.  35 million people shop at Walmart every day, as much as the population of Canada.  The Walton family is worth $150 billion.  Walmart’s top selling item in 2012 was the Banana.  90% of Americans live within 15 minutes of a Walmart.
  4. 4. Global Presence It has over 11,000 stores in 27 countries, under a total 55 different banners. The company operates under the Walmart name in the US and Puerto Rico. It operates in Mexico as Walmart de México y Centroamérica, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Source - http://en.wikipedia.org/wiki/Walmart
  5. 5. Supply Chain Management at Walmart  Fewer Links in Supply Chain  Vendor Managed Inventory (VMI)  Strategic Vendor Partnerships  Cross Docking as inventory Tactic  Technology Universal Product Code bar codes  Retail Link  Information sharing with Partners  RFID tags Source - http://blog.tradegecko.com/incredibly-successful-supply-chain-management-walmart/
  6. 6. Walmart Supply Chain Flow Chart Manufacturer Manufacturer Manufacturer Retail Store Retail Store Radio, headphone Point of sale terminal Retail Store Distribution center Bar code, RFID Satellite system Company Headquarter
  7. 7. Supply Chain elements at Walmart Some of the ways supply chain is managed at Walmart-  Minitrucks - Inside distribution centers equipped with headphone Computer give direction to driver in voice.  Bar Code System - Pallets passed through conveyor belt are scanned automatically and product codes are transferred to centralized computer system  RFID - Use radio waves to identify objects, tags with microchip and antenna built in  Large Scale Satellite system - Link all of the stores to headquarter, giving Wal-Mart’s central computer system real-time inventory data. Continued…
  8. 8.  Information Sharing - Open its databases, Retail Link private extranet system : to see exactly how its products are selling and when it might need to up its production to give more than 2000 suppliers computer access to point-of-sale data.  Walmart Advanced Vehicle Experience Concept Truck – It is the latest in fleet efficiency program. The one-of-a-kind prototype offers a whole package of firsts. The trailer is made almost exclusively with carbon fibre, saving around 4,000 pounds, which can then be used to carry more freight. Here is a small video for the same……
  9. 9. Walmart – P&G channel partnership Initial Drawbacks-  Adversarial Relationship - Wal-Mart did not like doing business with P&G as they were too complicated and inflexible.  Transactional focus - P&G were obsessed by day by day selling, in which success was that you got the order today and failure was that you did not.  Main Objective – Only to push sales, irrespective of what the customer needed, or was rewarded for. No testing or long term planning. Continued… Source - http://citebm.business.illinois.edu/IT_cases/Graen-Shaw-PG.pdf
  10. 10.  Fragmented processes - Relationship and activities were managed by the buying and selling function only. Management - Post Deal  An example of how that manufacturers and retailers integrate into the supply chain as partners and build benefits for each other by reducing costs and improving service.  P&G installed the IT system Electronic Data Interchange (EDI), recommended by Wal-Mart.
  11. 11.  Allowed Wal-Mart to get and share data, reducing the costs and making higher profits.  Used the CRP to reduce the reorder cycle time.  Using these systems, P&G replenishes Walmart’s inventory.  This assists P&G in managing its inventory levels and ensures that P&G products are in stock in Wal-Mart at all times.
  12. 12. SCM – enabled partnership in India Source - http://articles.economictimes.indiatimes.com/2011-08-22/news/29915200_1_devendra-chawla-big-bazaar- future-group
  13. 13. Supply Chain Management at Big Bazar Big Bazar has partnership with many vendors out of which Unilever is one of the biggest. Procurement at big bazar happens from  Central Distribution Centre (CDC).  Local Vendors The stock in the store is managed by Automated Replenishment System(ARS). The CDC are located in such a strategically positioned so that it can easily caters to the nearby Big Bazar.
  14. 14. Inwarding Process at Warehouse PO generated by the ARS Received by the vendor Vendor delivers the Goods IRN is issued by the warehouse management team Stock Tally. If stock tally fails then discrepancy note is generated GRN is issued Stock is either piled in the warehouse or sent to the floor for sale
  15. 15. Outwarding Process at Warehouse Raising of PO to the vendor by the CDC Delivery of the stock to the CDC Receiving of the stocks after weighing, counting and generation of IRN Information is transferred to SAP Generation of GRN Stock piled stored in the warehouse of CDC PO generated from stores to CDC Outwarding of material from CDC Receiving of goods at the Big Bazaar store
  16. 16. Unique Features in Big Bazar - Uniliver Partnership Sambandh Program - Sambandh program aims to foster an environment combining our strengths to create immense value for our supplier partners and in turn, nurture mutual growth. There are three main aspects of the Sambandh program:  Collaborating in business planning and management to ensure optimal growth  Leveraging Future Group resources and making life easier for you  Putting our strengths together to create a unique position in the marketplace Continued… http://www.futuregroup.in/suppliers/suppliers-distributors.html
  17. 17. Success Story - Netway began manufacturing homecare products like toilet cleaners, glass cleaners, utensil cleaners and hand-wash at its plant under Future Group’s guidance with respect to quality and other product specifications. With this association, Netway’s turnover saw exponential growth in just three years. Netway is now growing at a brisk pace of 50% in sync with Future Group’s growth.

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