Operation management wal-mart


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This presentation is on the Operation Management by Wal-mart.It includes Introduction,Operation Strategies,

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Operation management wal-mart

  1. 1. A Presentation by Dhaval GurnaniK.S.School of Business Management Year-2012-13
  2. 2. Wal-Mart Stores, Inc. branded as Walmart, is an American multinational retailer corporation.The company is the worlds 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 worlds 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. 3. HEADQUARTERS--Bentonville,Arkansas.
  4. 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. 5. WALMART SLOGANStarting slogan: Always Low PricesNew slogan: Save Money. Live Better.(from 2007)
  6. 6. To give ordinary folk the To become the worldwidechance to buy the same thing leader in retailing as rich people
  7. 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.
  9. 9. OPERATION STRATEGYCapturing market share with “everyday lowprice” strategy.Cultural adaptation.Training employees because people are keyto Wal-Marts businessBuy at less to sell at less.
  10. 10. COMPETITIVE STRATEGYDifferent shop design for each demographic groups.All product in one store.Competence in use of information technology forlogistics system.Highest customer satisfaction
  11. 11. OPERATION STRATEGY FOR THE DEVELOPMENT OF SOCIETY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.
  12. 12. INNOVATIVE SERVICE LAYOUT TO MAKE SHOPPING EASIERIntroduced new Layout to improve CustomerExperience with faster service.Always offer unbeatable PricesLayout of the stores will save customers time as theyshop for everyday necessitiesIts Service layout create an open shopping environmentthat helps customers find what they are looking forquickly.
  13. 13. OPERATING DIVISIONS OF WAL-MARTWalmarts operations are organized into threedivisions:1)Walmart Stores2)U.S., Sams Club, and3)Walmart International.
  15. 15. • Capacity PlanningThe process of determining the productioncapacity needed by an organization to meetchanging demands for its products• Shop LocationUSA 50 STATES 4300 OUTLETSGLOBE 14 COUNTRIES 4081 OUTLETS
  16. 16. • Shop LayoutNew 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. 17. • Shop SizeDifferent size for different stores• Warehouse SizeSingle large warehouse for a single state.
  19. 19. • PRICELow Price everyday• SUPPLIERSPartners with more than 2500 minority-andwomen-owned business suppliers.
  20. 20. Walmart’s Method of Managing the Supply Chain
  21. 21. • KEY COMPONENTS1. Vendor Partnerships2. Cross Docking3. Distribution Management4. Technology and Integration
  22. 22. • 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
  24. 24. 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
  25. 25. 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.
  26. 26. BEST PRICE outlet at Punjab
  27. 27. Scott Price,President & CEO- Walmart Asia
  28. 28. BEST PRICE Locations Opened in Amritsar in May 2009 and subsequently inZirakpur (Near Chandigarh),JalandharKotaBhopalLudhianaRaipurIndoreVijaywada Meerut, AgraLucknowJammuGunturAurangabadBathinda AmravatiHyderabad andRajahmundry.
  29. 29. BEST PRICE OUTLETJoint venture between the World’s largest wholesale retailer-Wal-Mart with Sunil Mittal Bharti Enterprises opening India’sfirst warehouse store- Best Price Modern Wholesale.It serves grocery store owners, fruit and vegetable resellers,restaurants, farmers and other business owners, includingsmall manufacturers.
  30. 30. BEST PRICE OUTLETThe store sells everythingfrom bed-sheets to ear buds.It has come up at an initialcost of 4.96 million euros.It provides 500 direct jobs.It has tie-ups with 30,000retailers and 8,000 suppliersacross the country.
  31. 31. BEST PRICE OUTLETBharti Walmart opens Second BestPrice Modern Wholesale Store inBhopal,MP.Bharti Wal-Mart has invested close toUSD 25 Million in Punjab.They work closely with farmers toimprove the quality of their yield andincrease their remunerations.Also committed to building a strong andefficient supply chain that wouldbenefit the consumer as they savepeople money so they can live better.
  32. 32. BEST PRICE OUTLETSpread over 63,000 square feet, the Best Price ModernWholesale 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 andother general merchandise items.These are available at competitive wholesale prices, allowingretailers and business owners to lower their cost ofoperations.