Wal-Mart pioneered the retail "hub-and-spoke" distribution system in the 1970s, centrally ordering goods at warehouses then dispatching to individual stores. This enabled significant cost savings through bulk purchasing and logistics control. Wal-Mart also emphasized efficient procurement practices like eliminating intermediaries and transparency with vendors. The company made large investments in IT like EDI, RFID, and inventory tracking systems to closely monitor sales and replenishments across its extensive supply chain network.