LOGO Wal-Mart supply chain www.walmartstores.com Professor: 何正得 Students : 楊氏良, 范氏紅, 阮德盛
Background Industry: Retailing Founded: 1962 Founder: Sam Walton Headquarter: Bentonville, Arkansas, United States Number of locations: 8,970 (2011) Area served: Worldwide Key people: S. Robson Walton(Chairman) Mike Duke (President and CEO)
Background Revenue: US$ 421.849 billion (2011) Operating income: US$ 25.542 billion (2011) Net income: US$ 15.355 billion (2011) Total assets: US$ 180.663 billion (2011) Total equity: US$ 68.542 billion (2011 Employees: Approx. 2.1 million (2011) Top U.S. Retail Industry Corporations on the 2011 Fortune 500 ranks Wal-Mart: - 2010 Rank - 1 - 2009 Rank - 2 - 2008 Rank - 1
Mission Wal-Marts advertised mission statement and its advertising slogan are the same: "We save people money so they can live better." In addition to this mission statement, the company looks to its founder, Sam Walton for a company "purpose": “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.”
Supply chain overviewwww.themegallery.com Company Logo
Competitive and supplychain strategies Wal-Mart’s competitive strategy is to be reliable, low-cost retailer for a wide variety of mass-consumption goods Supply chain emphasize efficiency but also maintain an adequate level of responsiveness in term of product availability.
Suppliers Wal-Mart works hard to ensure that the products on their shelves meet the unique needs Wal-Mart partners with thousands of suppliers in every merchandise category Maintaining a diverse mix is the key to their success. Wal-Mart outlines the steps a business owner must take in order to become its supplier Providing supplier training program: Wal- Mart has begun a new Web-based training program for Chinese factories that manufacture products for its stores.
SuppliersWal-Mart provides some standards for their suppliers: Compliance with Laws Voluntary Labor Hiring and Employment Practices Compensation Freedom of Association and Collective bargaining Health and Safety Environment Gifts and Entertainment Conflicts of Interest Anti-Corruption Financial Integrity
Distribution Center Having one of the largest private distribution operations in the world. Having more than 40 Regional Distribution Centers Wal-Mart was able to provide replenishment within 2 days against at least 5 days for competitor. The inventory turnover rate was very high, about once every two weeks for most of the items They operate 24/7 There are also distribution centers for specific product categories such as grocery, jewelry, pharmacy, apparel/shoes
Distribution Center Each DC’s size : 1 million square feet. It was divided into different sections on the basis of the quantity goods received Inside each DC, more than five miles of conveyor belts move over 9,000 different lines of merchandise Each DC supports between 75 and 100 stores within a 250-mile radius Each DC had facilities for maintaining personal hygiene such as shower bath and fitness center.
Inventory management Wal-Mart maintains an efficient supply chain by keeping low levels of inventory Wal-Mart pioneered cross-docking They run an EOQ(Economic order quantity) system where their demand rates are continuous, frequent, and known Wal-Mart manages an efficient JIT system The Wal-Mart EPC(electronic product code) initiative, launched in 2005, uses RFID solutions to track items from manufacturer to distribution centers to its stores.
Inventory management:RFID RFID is used to improve product availability for Wal-Mart customers. Cases and pallets containing the products will feature EPCs when delivered to Wal-Mart’s regional distribution center. RFID readers installed at dock doors will automatically let Wal-Mart’s operations and merchandising teams as well as suppliers know this exact shipment of products has arrived and is inside the building Cases will then be removed from pallets and processed as usual through the distribution center.
TransportationA Slow Boat from ChinaDelivers Cars Toys to the U.S. Trains transport the Containers to the Distribution Centers Trucks also haul the Containers to Distribution Centers
Transportation The retailer aims to take over U.S. transportation services from suppliers in an effort to reduce the cost of hauling goods Wal-Mart will increase its use of contractors, as well as its own vehicles, to pick up products directly from manufacturers’ facilities. Wal-Mart’s initiative to take over transportation from its suppliers to its distribution centers and stores: Wal-Mart has a very large private fleet (6,500 tractors and 55,000 trailers) Wal-Mart supports one of the largest trucking fleets in the United States with over 6650 trucks, 5400 dry vans, 3900 reefers and logs over 757 million miles annually
TransportationFleet Statistics 7,400 Drivers 6,537 Tractors 51,882 Dry Van Trailers 5,001Reefer Trailers 80,000 Associates in Logistics 124 Distribution Centers 713 Million Miles Driven in 2010 4 Million Total Store Deliveries Per Year 1.6 Million Miles Per Preventable Accident
Wal-Mart stores Wal-Mart Stores serves customers and members more than 200 million times per week at more than 9,800 retail units under 69 different banners in 28 countries. Wal-Mart builds retail stores only where the demand is sufficient to justify having several of supported by DC
Wal-Mart stores in USDescription Retail Units Entry Opened first in 1988Supercenter 3,002 (Washington, MO) Opened first in 1962Discount Store 647 (Rogers, AR) Opened first in 1998Supermarkets* 192 (Bentonville, AR)Small formats** 9Walmart U.S. 3,850 Opened first in 1983Sams Club 610 (Midwest City, OK)Total U.S. 4,460
Wal-Mart stores in USwww.themegallery.com Company Logo
Wal-Mart stores in other countriesMexico 1,932 Entered November 1991Canada 329 Entered November 1994Brazil 496 Entered May 1995Argentina 67 Entered August 1995China*** 352 Entered August 1996United Kingdom 542 Entered July 1999Japan 415 Entered March 2002Costa Rica 194 Entered September 2005El Salvador 77 Entered September 2005Guatemala 188 Entered September 2005Honduras 62 Entered September 2005Nicaragua 67 Entered September 2005Chile 299 Entered January 2009India 9 Entered May 2009Africa**** 337 Entered June 2011Walmart International 5,366Wal-Mart Stores, Inc. 9,826
Where in the World isWal-Mart?www.themegallery.com Company Logo
Supply chain issues The company was tired to apply the same standards it used in The United States with local suppliers Some local suppliers either refused to give special discount or to sell products to Wal- Mart Some producers rejected delivery system; they refused to send goods to Wal-Mart distribution center
ConclusionWal-Mart 2011 annual report :Every week around the world, Wal- Mart’s 2.1 million associates work diligently to help more than 200 million customers save money so they can live better