Wal-Mart uses an efficient distribution system to supply its stores. It operates distribution centers that are strategically located within a day's drive of the stores they supply. Using cross-docking and other techniques, the distribution centers are able to quickly receive and ship goods to stores. This just-in-time system, supported by Wal-Mart's transportation fleet and technology infrastructure, allows it to keep prices low by reducing costs. Wal-Mart's Remix initiative further streamlines this supply chain by consolidating vendors' shipments into full truckloads for more efficient transport. This program changes vendors' logistics responsibilities and requires coordination with third-party providers.
This document defines and describes different types of marketing intermediaries, including retailers, wholesalers, and logistical organizations. Retailers sell directly to final consumers, and include both store and non-store retailers like department stores, specialty stores, discount stores, vending machines, and direct marketing. Wholesalers sell goods and services to businesses for resale. Logistical organizations plan and control the physical flow of materials and goods to meet customer demand profitably.
This document defines and describes various retail store formats and non-store retail formats. Store retail formats include department stores, specialist stores, category killers, convenience stores, supermarkets/superstores/hypermarkets, catalogue shops, discount stores, and factory outlets. Non-store retail formats consist of mail order, direct selling, personal retailing, telesales, and internet retailing. Each format is briefly characterized, such as department stores offering a wide product range across multiple floors and specialist stores focusing on a narrow customer segment.
Channel Power & Conflict and Channel DynamicsNavin Raj Saroj
This document discusses channel power, conflict, and dynamics. It defines channel power as a member's ability to influence other members' behavior. The five bases of power are reward, coercion, expertise, reference, and legitimacy. Channel conflict can occur vertically between different levels, horizontally between members at the same level, between different types of members, and with multiple channels. Conflicts arise from incompatible goals, unclear roles, and dependence. Managing conflict involves communication, councils, co-optation, arbitration, and mediation. Channel dynamics include gaining member acceptance, physical distribution, legal issues like exclusivity and tying arrangements, and factors like output, lot size, waiting time, convenience, variety, and service.
A marketing channel consists of all the institutions and activities involved in transferring goods from production to consumption, including producers, buyers, and middlemen. It performs important functions like linking producers to buyers, sales and promotion, influencing pricing strategy, and customizing products. When determining the appropriate marketing channel strategy, factors to consider include product characteristics, market conditions, company resources and goals, and the available middlemen and their potential services.
Walmart is no stranger to innovation.
However, when defining the secret to the company’s success, Walmart’s chief executive Doug McMillon said he doesn't have to look far. He just has to look within the company’s proverbial four walls.
A blog on Walmart’s website shared highlights of the retail giant’s Walmart’s 47th Annual Shareholders’ Meeting, held Friday, June 2. During the event, McMillon said Walmart has “started to invent the future of shopping again.”
How so? It is not secret that the company is leveraging technology to empower associates and improve the customer experience. These efforts will help “build a new Walmart,” according to McMillon, who addressed more than 14,000 associates worldwide from the Bud Walton Arena at the University of Arkansas, in Fayetteville, Arkansas.
Wal mart case study solution.shrikant ranaShrikant Rana
Walmart has built a highly efficient supply chain management system centered around its distribution centers and use of innovative IT. It uses over 40 distribution centers located strategically across the US to stock over 80,000 items. Walmart owns the largest private fleet of trucks which it uses to directly pickup goods from manufacturers and deliver 85% of inventory to its stores. The company heavily invests in IT systems to track sales, inventory, and replenish stock based on demand. This efficient supply chain allows Walmart to offer the lowest prices through reduced costs and ensures stores are well stocked.
This document defines and describes different types of marketing intermediaries, including retailers, wholesalers, and logistical organizations. Retailers sell directly to final consumers, and include both store and non-store retailers like department stores, specialty stores, discount stores, vending machines, and direct marketing. Wholesalers sell goods and services to businesses for resale. Logistical organizations plan and control the physical flow of materials and goods to meet customer demand profitably.
This document defines and describes various retail store formats and non-store retail formats. Store retail formats include department stores, specialist stores, category killers, convenience stores, supermarkets/superstores/hypermarkets, catalogue shops, discount stores, and factory outlets. Non-store retail formats consist of mail order, direct selling, personal retailing, telesales, and internet retailing. Each format is briefly characterized, such as department stores offering a wide product range across multiple floors and specialist stores focusing on a narrow customer segment.
Channel Power & Conflict and Channel DynamicsNavin Raj Saroj
This document discusses channel power, conflict, and dynamics. It defines channel power as a member's ability to influence other members' behavior. The five bases of power are reward, coercion, expertise, reference, and legitimacy. Channel conflict can occur vertically between different levels, horizontally between members at the same level, between different types of members, and with multiple channels. Conflicts arise from incompatible goals, unclear roles, and dependence. Managing conflict involves communication, councils, co-optation, arbitration, and mediation. Channel dynamics include gaining member acceptance, physical distribution, legal issues like exclusivity and tying arrangements, and factors like output, lot size, waiting time, convenience, variety, and service.
A marketing channel consists of all the institutions and activities involved in transferring goods from production to consumption, including producers, buyers, and middlemen. It performs important functions like linking producers to buyers, sales and promotion, influencing pricing strategy, and customizing products. When determining the appropriate marketing channel strategy, factors to consider include product characteristics, market conditions, company resources and goals, and the available middlemen and their potential services.
Walmart is no stranger to innovation.
However, when defining the secret to the company’s success, Walmart’s chief executive Doug McMillon said he doesn't have to look far. He just has to look within the company’s proverbial four walls.
A blog on Walmart’s website shared highlights of the retail giant’s Walmart’s 47th Annual Shareholders’ Meeting, held Friday, June 2. During the event, McMillon said Walmart has “started to invent the future of shopping again.”
How so? It is not secret that the company is leveraging technology to empower associates and improve the customer experience. These efforts will help “build a new Walmart,” according to McMillon, who addressed more than 14,000 associates worldwide from the Bud Walton Arena at the University of Arkansas, in Fayetteville, Arkansas.
Wal mart case study solution.shrikant ranaShrikant Rana
Walmart has built a highly efficient supply chain management system centered around its distribution centers and use of innovative IT. It uses over 40 distribution centers located strategically across the US to stock over 80,000 items. Walmart owns the largest private fleet of trucks which it uses to directly pickup goods from manufacturers and deliver 85% of inventory to its stores. The company heavily invests in IT systems to track sales, inventory, and replenish stock based on demand. This efficient supply chain allows Walmart to offer the lowest prices through reduced costs and ensures stores are well stocked.
Walmart has established itself as the largest retailer through efficient supply chain management. It reduces costs by partnering with suppliers, cross-docking products at distribution centers, and using technology like RFID tags to track inventory. RFID implementation has led to a 16% drop in out-of-stock items. Walmart's scale also allows it to negotiate lower prices from suppliers. Its supply chain integration has provided competitive advantages like lower product costs and improved in-store variety and selection.
In this presentation, we will help you understand about retail location selection, factors affecting location of retail outlet, retail organization designs/structures, knowing potential customers in detail, accessibility factors, competitor’s issues, cost factors etc.
We will also talk about managing human resource, effective HRM, employee productivity, importance of human resource management, motivating and developing employee’s skills, merchandise management, store management, operations management, strategic management, co-ordination of stores, emerging trends in retail, building HR scoreboard, employee behavior and organization benefits.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document discusses key concepts in distribution management. It defines distribution as making products and services available to end users when and where they need them through sequential systems and activities. Distribution channels refer to the organizations that facilitate the flow of goods from producers to consumers. The document outlines important attributes of distribution systems like time, place, and control of products. It also describes elements of distribution like material handling, inventory planning and control, order processing, transportation, communication, and organizational structure.
This document discusses sales promotion and motivation. It covers the role and objectives of consumer and trade sales promotion, common techniques used, and limitations. Motivation of the sales force is also addressed, including theories of motivation, tools to increase motivation, and ways companies can fulfill sales force needs and keep them motivated. Ethical issues related to some sales promotion practices are also briefly outlined.
Walmart has achieved significant success and growth since Sam Walton opened the first store in 1962. It has expanded to over 7,800 stores globally and 2 million employees, becoming the largest retailer in the world. Walmart thrives during economic downturns as consumers flock to its low prices. Key factors in its success include strategic targeting of rural communities with lower costs, strong management practices, cost control, distribution network, and embracing employee ideas.
Walmart is the world's largest company by revenue and largest private employer. Founded in 1962 in Arkansas by Sam Walton, Walmart operates retail stores across various formats globally. In fiscal year 2015, Walmart generated over $485 billion in revenue. Walmart pioneered the use of supply chain management and technology to offer customers low prices on a wide range of products.
This document provides an overview of sales forecasting. It discusses that sales forecasting is an important aspect of sales management that involves estimating future sales. It describes that no single forecasting method is suitable for every situation and managers must choose methods that match their specific decision needs. Both qualitative methods like expert opinions and quantitative methods like statistical analysis can be used. The document also discusses key considerations like who is responsible for forecasts, choosing appropriate time horizons, and evaluating forecast accuracy.
Non-store retailing involves sales made directly to consumers without using physical stores. It includes direct marketing through methods like telemarketing, direct mail, and e-commerce. Non-store retailing offers consumers convenience through purchases made 24/7 via phone or online. It now accounts for over 15% of all consumer purchases and is growing at a higher rate than traditional retail stores. Common non-store retailing methods include direct marketing, direct selling, vending machines, and kiosks.
The document discusses various aspects of promotion mix, including the key elements of promotion mix such as advertising, sales promotion, public relations, and personal selling. It defines these elements and provides examples. The objectives of promotion are also outlined as building awareness, creating interest, providing information, and stimulating demand. Factors that guide selection of promotion mix include the nature of the product market, overall marketing strategy, buyer readiness stage, and product life cycle stage.
This document discusses marketing channels and their evolution. It describes how marketing channels link producers to buyers, influence pricing strategies, and customize services. It then outlines the historical development of marketing channels from agricultural to industrial systems and the rise of independent intermediaries. Finally, it categorizes possible channel formats that are product-driven, seller-driven, or service-driven and lists the functions performed by marketing channels.
Sam Walton founded Walmart in 1940 and it has grown to become the world's largest retailer. Walmart pioneered efficient supply chain management practices like centralized distribution and electronic data interchange with suppliers. This allowed Walmart to offer low prices while maintaining high sales volumes. Walmart's use of technology like barcodes, data warehouses, and GPS tracking further optimized its supply chain and logistics operations.
Retailing Dictionary A To Z Retail BusinessAnoopsinghMba
This document provides definitions for over 100 common retail business terms starting with A through G. Some of the key terms defined include:
- Anchor store: A major store used to drive customers to smaller retailers in a shopping center.
- Brand: A name, symbol or mark associated with a seller's goods/services that distinguishes them from competitors.
- Brick and mortar: Refers to physical retail stores located in a building rather than online.
- Category killer store: A large specialty store with an enormous selection in its product category and low prices that draws customers from a wide area.
- Department store: A large retail unit organized into departments selling a wide variety of goods and services
This document discusses channels of distribution and types of distribution. There are two main types: direct distribution, where the producer sells directly to the consumer, and indirect distribution, which involves one or more intermediaries like wholesalers or retailers. Choosing which channels to use involves considering factors like the market size and type, product characteristics, services provided by middlemen, and the company's resources and desire for control. The document outlines different levels of channels from producer to consumer and potential conflicts that can arise both horizontally and vertically between participants in the channels.
Wal-Mart has achieved tremendous success through a strategic focus on dominating retail markets wherever it operates, expanding aggressively in the US and internationally, and creating widespread brand recognition associated with low prices and quality. It implements these strategies by maintaining low costs, opening numerous store formats like supercenters and Sam's Club warehouses, and branching into new retail sectors. While largely successful, Wal-Mart faces some criticism that it has negatively impacted local businesses and pays low wages.
The document discusses concepts related to sales and sales management. It defines sales as persuading people to satisfy their wants through the act of selling goods and services. Sales management involves planning, directing, and controlling personal selling activities like recruiting, training, and motivating the sales force. The document also outlines the benefits of sales activities for businesses, consumers, and society as a whole by facilitating economic growth and employment. Key skills for sales executives are discussed, including conceptual, people, technical, and decision-making abilities.
Marketing research is used to understand consumers and identify marketing opportunities and problems. It involves gathering information to develop, test, and evaluate marketing strategies. Some common applications of marketing research include product research to develop and test new products, concept testing to evaluate new advertising or branding concepts, and pricing research to determine the optimal price points. Other areas that marketing research addresses include positioning, customer satisfaction, market segmentation, advertising, branding, and sales analysis.
1. The document discusses demand measurement and sales forecasting. It defines sales forecasting as an estimate of future sales under a marketing plan and economic conditions.
2. Sales forecasting serves as the basis for business planning and informs decisions around marketing, production, inventory, and budgets. Accurate forecasting requires analyzing market trends, demand, and a company's sales potential.
3. The document outlines various forecasting methods like executive opinions, statistical analysis, customer expectations, time series analysis, and the Delphi method. It emphasizes using multiple forecasting techniques for a reliable sales estimate.
This document discusses Walmart's global supply chain management. It provides details on Walmart's operations in over 11,000 stores across 27 countries. Key aspects of Walmart's supply chain include vendor managed inventory, strategic supplier partnerships, cross-docking, barcoding, RFID tracking, and information sharing with suppliers. The document also summarizes Big Bazaar's supply chain partnership with Unilever in India, including procurement, inventory management, and a program to foster collaboration between retailers and suppliers.
Walmart has highly effective supply chain management practices that have contributed significantly to its success. It uses procurement strategies like direct sourcing from manufacturers and vendor managed inventory. Logistically, it employs cross-docking and a hub-and-spoke distribution model. Walmart also pioneered the use of IT in supply chain management, developing systems for inventory tracking, replenishment, and collaboration with suppliers. These integrated IT systems and data-driven practices help Walmart maintain low inventory levels while still ensuring high product availability.
Quince is a communication and digital development company that has been operating for 15 years. They have a large percentage of long-term employees and clients. Quince has offices in Amsterdam, Budapest, and various locations in Asia. The document discusses measuring skills, learning to grow through improving skills and tasks, and leveling communication. It also provides tips on brainstorming and creating the future together.
Walmart has established itself as the largest retailer through efficient supply chain management. It reduces costs by partnering with suppliers, cross-docking products at distribution centers, and using technology like RFID tags to track inventory. RFID implementation has led to a 16% drop in out-of-stock items. Walmart's scale also allows it to negotiate lower prices from suppliers. Its supply chain integration has provided competitive advantages like lower product costs and improved in-store variety and selection.
In this presentation, we will help you understand about retail location selection, factors affecting location of retail outlet, retail organization designs/structures, knowing potential customers in detail, accessibility factors, competitor’s issues, cost factors etc.
We will also talk about managing human resource, effective HRM, employee productivity, importance of human resource management, motivating and developing employee’s skills, merchandise management, store management, operations management, strategic management, co-ordination of stores, emerging trends in retail, building HR scoreboard, employee behavior and organization benefits.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document discusses key concepts in distribution management. It defines distribution as making products and services available to end users when and where they need them through sequential systems and activities. Distribution channels refer to the organizations that facilitate the flow of goods from producers to consumers. The document outlines important attributes of distribution systems like time, place, and control of products. It also describes elements of distribution like material handling, inventory planning and control, order processing, transportation, communication, and organizational structure.
This document discusses sales promotion and motivation. It covers the role and objectives of consumer and trade sales promotion, common techniques used, and limitations. Motivation of the sales force is also addressed, including theories of motivation, tools to increase motivation, and ways companies can fulfill sales force needs and keep them motivated. Ethical issues related to some sales promotion practices are also briefly outlined.
Walmart has achieved significant success and growth since Sam Walton opened the first store in 1962. It has expanded to over 7,800 stores globally and 2 million employees, becoming the largest retailer in the world. Walmart thrives during economic downturns as consumers flock to its low prices. Key factors in its success include strategic targeting of rural communities with lower costs, strong management practices, cost control, distribution network, and embracing employee ideas.
Walmart is the world's largest company by revenue and largest private employer. Founded in 1962 in Arkansas by Sam Walton, Walmart operates retail stores across various formats globally. In fiscal year 2015, Walmart generated over $485 billion in revenue. Walmart pioneered the use of supply chain management and technology to offer customers low prices on a wide range of products.
This document provides an overview of sales forecasting. It discusses that sales forecasting is an important aspect of sales management that involves estimating future sales. It describes that no single forecasting method is suitable for every situation and managers must choose methods that match their specific decision needs. Both qualitative methods like expert opinions and quantitative methods like statistical analysis can be used. The document also discusses key considerations like who is responsible for forecasts, choosing appropriate time horizons, and evaluating forecast accuracy.
Non-store retailing involves sales made directly to consumers without using physical stores. It includes direct marketing through methods like telemarketing, direct mail, and e-commerce. Non-store retailing offers consumers convenience through purchases made 24/7 via phone or online. It now accounts for over 15% of all consumer purchases and is growing at a higher rate than traditional retail stores. Common non-store retailing methods include direct marketing, direct selling, vending machines, and kiosks.
The document discusses various aspects of promotion mix, including the key elements of promotion mix such as advertising, sales promotion, public relations, and personal selling. It defines these elements and provides examples. The objectives of promotion are also outlined as building awareness, creating interest, providing information, and stimulating demand. Factors that guide selection of promotion mix include the nature of the product market, overall marketing strategy, buyer readiness stage, and product life cycle stage.
This document discusses marketing channels and their evolution. It describes how marketing channels link producers to buyers, influence pricing strategies, and customize services. It then outlines the historical development of marketing channels from agricultural to industrial systems and the rise of independent intermediaries. Finally, it categorizes possible channel formats that are product-driven, seller-driven, or service-driven and lists the functions performed by marketing channels.
Sam Walton founded Walmart in 1940 and it has grown to become the world's largest retailer. Walmart pioneered efficient supply chain management practices like centralized distribution and electronic data interchange with suppliers. This allowed Walmart to offer low prices while maintaining high sales volumes. Walmart's use of technology like barcodes, data warehouses, and GPS tracking further optimized its supply chain and logistics operations.
Retailing Dictionary A To Z Retail BusinessAnoopsinghMba
This document provides definitions for over 100 common retail business terms starting with A through G. Some of the key terms defined include:
- Anchor store: A major store used to drive customers to smaller retailers in a shopping center.
- Brand: A name, symbol or mark associated with a seller's goods/services that distinguishes them from competitors.
- Brick and mortar: Refers to physical retail stores located in a building rather than online.
- Category killer store: A large specialty store with an enormous selection in its product category and low prices that draws customers from a wide area.
- Department store: A large retail unit organized into departments selling a wide variety of goods and services
This document discusses channels of distribution and types of distribution. There are two main types: direct distribution, where the producer sells directly to the consumer, and indirect distribution, which involves one or more intermediaries like wholesalers or retailers. Choosing which channels to use involves considering factors like the market size and type, product characteristics, services provided by middlemen, and the company's resources and desire for control. The document outlines different levels of channels from producer to consumer and potential conflicts that can arise both horizontally and vertically between participants in the channels.
Wal-Mart has achieved tremendous success through a strategic focus on dominating retail markets wherever it operates, expanding aggressively in the US and internationally, and creating widespread brand recognition associated with low prices and quality. It implements these strategies by maintaining low costs, opening numerous store formats like supercenters and Sam's Club warehouses, and branching into new retail sectors. While largely successful, Wal-Mart faces some criticism that it has negatively impacted local businesses and pays low wages.
The document discusses concepts related to sales and sales management. It defines sales as persuading people to satisfy their wants through the act of selling goods and services. Sales management involves planning, directing, and controlling personal selling activities like recruiting, training, and motivating the sales force. The document also outlines the benefits of sales activities for businesses, consumers, and society as a whole by facilitating economic growth and employment. Key skills for sales executives are discussed, including conceptual, people, technical, and decision-making abilities.
Marketing research is used to understand consumers and identify marketing opportunities and problems. It involves gathering information to develop, test, and evaluate marketing strategies. Some common applications of marketing research include product research to develop and test new products, concept testing to evaluate new advertising or branding concepts, and pricing research to determine the optimal price points. Other areas that marketing research addresses include positioning, customer satisfaction, market segmentation, advertising, branding, and sales analysis.
1. The document discusses demand measurement and sales forecasting. It defines sales forecasting as an estimate of future sales under a marketing plan and economic conditions.
2. Sales forecasting serves as the basis for business planning and informs decisions around marketing, production, inventory, and budgets. Accurate forecasting requires analyzing market trends, demand, and a company's sales potential.
3. The document outlines various forecasting methods like executive opinions, statistical analysis, customer expectations, time series analysis, and the Delphi method. It emphasizes using multiple forecasting techniques for a reliable sales estimate.
This document discusses Walmart's global supply chain management. It provides details on Walmart's operations in over 11,000 stores across 27 countries. Key aspects of Walmart's supply chain include vendor managed inventory, strategic supplier partnerships, cross-docking, barcoding, RFID tracking, and information sharing with suppliers. The document also summarizes Big Bazaar's supply chain partnership with Unilever in India, including procurement, inventory management, and a program to foster collaboration between retailers and suppliers.
Walmart has highly effective supply chain management practices that have contributed significantly to its success. It uses procurement strategies like direct sourcing from manufacturers and vendor managed inventory. Logistically, it employs cross-docking and a hub-and-spoke distribution model. Walmart also pioneered the use of IT in supply chain management, developing systems for inventory tracking, replenishment, and collaboration with suppliers. These integrated IT systems and data-driven practices help Walmart maintain low inventory levels while still ensuring high product availability.
Quince is a communication and digital development company that has been operating for 15 years. They have a large percentage of long-term employees and clients. Quince has offices in Amsterdam, Budapest, and various locations in Asia. The document discusses measuring skills, learning to grow through improving skills and tasks, and leveling communication. It also provides tips on brainstorming and creating the future together.
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This document provides a summary of activities that occurred at Detachment 3 Ammo in Qatar in 2006. It describes the original crew, upgrading their home, ways they cooled off in the hot desert, media center activities, blocking and bracing work, testing munitions and loading combat unit boxes. It also mentions trips downtown, playing dominos and other games, an EOD blast, inventory work, and inspecting missiles before concluding with thanks for the memories from that year.
This document provides a summary of key microeconomics concepts including:
1. Demand, supply, and the concept of equilibrium. It defines demand, supply, and how equilibrium price and quantity are determined by the intersection of the demand and supply curves.
2. Consumer surplus and how it is measured as the difference between what consumers are willing to pay and the actual market price.
3. How government subsidies of essential goods, like bread, can reduce total economic surplus in the market by creating a new equilibrium price below the original market price.
The document discusses communication skills and personal and professional growth. It encourages measuring one's skills in areas like strategy, creativity, and leadership. It advises that all skills are interconnected and improving one improves others. It suggests finding work that creates "leap learning" and communicating at different levels. It promotes brainstorming with dreamers, realists, and critics and creating the future together through creating, using, and throwing away ideas to create new ones.
This document provides an introduction and overview of 5 Core Electronics Ltd, an electronics manufacturer based in India. Some key points:
- The company was founded in 1984 in Kolkata and established its brand "5 CORE" in 1988, introducing multi-core soldering wire.
- It is now a large manufacturer with a turnover of over 250 crores and exports products to over 15 countries worldwide.
- 5 Core produces a wide range of electronics and electrical products across several categories including audio, video, power solutions, and PA systems.
1 - O documento discute o uso de números e matemática na língua inglesa no dia a dia.
2 - É explicado que os números são onipresentes em situações cotidianas como pagamentos, transporte público, receitas e transações bancárias.
3 - As seções subsequentes irão ensinar como falar números cardinais, ordinais, frações, porcentagens, decimais e outras unidades matemáticas em inglês.
The document provides instructions for configuring a company code in SAP. It discusses creating a company code, assigning the company code to a company and chart of accounts, defining business areas and account groups, and creating retained earnings accounts. The configuration covers basic setup steps for company code 1100 located in the US including defining the country, currency, address and assigning the USCA chart of accounts.
Elk Education Consultants Pvt Ltd (International Journal of Marketing) is a initiative of ELK group. we are not for profit initiative and offers deep insights to research topics in Marketing and Retail management. ELK Asia Pacific Journal of Marketing and Retail Management is an internationally listed Journal with Cabell.
This document discusses channels of distribution, which refers to the chain of businesses that move a product from the manufacturer to the final consumer. It identifies key functions of distribution channels like facilitating transactions, logistics, marketing, and risk sharing. Common channel types include one level (manufacturer to retailer), two level (manufacturer to wholesaler to retailer), and three level channels. Factors that influence channel selection include market factors, product characteristics, company resources, competitive landscape, and the environment. Choosing the right distribution channel is important and depends on aligning with strategic goals and adding value for consumers.
Wal-Mart has an efficient supply chain management system that allows it to replenish stores within two days on average. It has over 40 distribution centers across the US that have high inventory turnover rates. Wal-Mart owns over 3,500 trucks that deliver goods from distribution centers to stores within two days, replenishing stores once a week. It works directly with manufacturers to reduce costs and ensure transparency, preferring local and regional suppliers. Wal-Mart's supply chain practices result in increased efficiency, lower costs that are passed onto customers, and strong competitive advantage.
Marketing Channels
Channel Functions
Role of Intermediaries
Direct Distribution
InDirect Distribution
Marketing Channel Systems
Vertical Marketing System
Horizontal MS
Multi-channel Distribution
Distribution Channels
Spatial Discrepancy
Temporal Discrepancy
Breaking Bulk
Need for Assortment
Financial Support
Channel Flows
Three Flows Recognized
Degree of Involvement
Channel Levels
Key Learnings
Corporate VMS
Administered VMS
Contractual VMS
Vertical System
The document discusses marketing channels and distribution. It defines marketing channels as the structure of intra-company and extra-company organizations that link producers and consumers. The key participants in distribution channels are producers, intermediaries, and consumers. Common distribution strategies include intensive distribution, selective distribution, and exclusive distribution. Wholesalers sell goods to retailers or other businesses for resale, while retailers sell directly to end consumers. Wholesalers provide stocking, financing, and market information to help producers and retailers. Common types of retailers include department stores, discount stores, supermarkets, and convenience stores.
Marketing Channel and Wholesaling ManagementKULDEEP MATHUR
The document discusses marketing channels and wholesaling management. It defines key terms like marketing channels, intermediaries, wholesalers, retailers, consumers and describes their various roles. It also summarizes the functions of marketing channels in moving goods from producers to consumers and overcoming barriers. Additionally, it outlines decisions around selecting, training and motivating channel members as well as trends in wholesaling like increasing efficiency and strengthening manufacturer relationships.
Wholesalers are intermediary firms that purchase goods in bulk from manufacturers and sell them in smaller quantities to retailers. There are three main types of wholesalers: merchant wholesalers, who take ownership of goods and store them; brokers and agents, who facilitate sales but do not take ownership; and manufacturers' sales branches, which distribute their own products. Wholesalers provide benefits like expanding markets, cash flow for manufacturers, and moderating supply and demand fluctuations. New technologies, global competition, and retail consolidation are forcing wholesalers to modify their practices to remain competitive in the changing market.
Wal-Mart's supply chain has been a key competitive advantage through low distribution costs, centralized operations, and tight supplier relationships. However, Wal-Mart has seen its first profit decline in over a decade and aims to reduce inventory by $6 billion. The document recommends Wal-Mart analyze inventory levels, upgrade forecasting software, establish lean teams, benchmark competitors, design new trucks, implement RFID tags, and ship directly to stores to reduce costs and maintain low prices. It provides a background on Wal-Mart's supply chain operations and a quantitative and qualitative SWOT analysis.
This document discusses marketing channels and distribution strategies. It defines marketing channels as the organizations and individuals that facilitate moving goods from producers to customers. The key functions of marketing channels are routinizing decisions, financing the distribution process, participating in pricing, communicating between producers and customers, assisting with promotion, and minimizing transactions. The document outlines different types of marketing channels for consumer and industrial goods, and factors to consider when evaluating and selecting marketing channels.
This document discusses channel of distribution concepts, including:
- Types of channels can be physical (transfer of products) or trading (negotiation and ownership aspects).
- Designing distribution channels involves establishing objectives, specifying roles, selecting channel types (direct or indirect), determining intensity, and choosing members.
- Characteristics like market, product, competitive, middlemen, and company characteristics influence channel choices.
- Outsourcing decisions revolve around using in-house operations or outsourcing to third parties, which can provide benefits like reduced costs and inventory but loss of control.
- Major distribution channels include consumer goods, business goods, and services.
This document discusses key concepts related to physical distribution and marketing channels. It defines physical distribution as the movement and storage of goods from production to consumption via distribution channels. It describes different decisions involved in physical distribution like order processing, transportation, inventory planning and control, and warehousing. The document also discusses types of marketing channels like direct, indirect, and multiple-level channels. It explains factors that determine the choice of distribution channel for a product. Finally, it covers concepts of vertical marketing systems, horizontal marketing systems, channel power, and channel conflicts.
Entrepreneurship Week 3 Q4 - Distribution Channels.pdfMeinradBautista1
This document discusses distribution channels and supply chain management. It defines distribution channels as the chain of businesses that moves products from manufacturers to consumers. There are different types of distribution channels, including direct, indirect, exclusive, intensive and selective channels. Indirect channels involve intermediaries like wholesalers, distributors, agents and retailers. Distribution channels serve functions like transactions, logistics, and facilitating post-purchase services. Effective distribution channels and supply chain management are important for companies to deliver products efficiently and lower costs.
The document summarizes and compares the management strategies and business models of Amazon and Walmart that have contributed to their success in e-commerce. It analyzes both companies' use of Michael Porter's value chain model and competitive forces model. Key factors for Amazon included convenience, selection, service, technology innovation, and low costs. For Walmart, factors were aggressive technology use, supplier partnerships, data analytics, workforce culture, and everyday low prices.
Chapter 10-marketing-channels-and-supply-chain-managementEloisa Dela Cruz
This chapter discusses key concepts relating to marketing channels and physical distribution. It explains that distribution channels involve organizations that make products available to consumers, and intermediaries help match supply and demand. The chapter then outlines different channel functions including transportation, inventory management, and order processing. It also identifies different channel structures, from direct to indirect channels, and discusses factors involved in selecting and evaluating channel members.
Creating an Omnichannel Supply Chain for BrandsMichael Hu
Branded manufacturers can take advantage of the unprecedented omnichannel opportunity to get closer to the consumer, if they manage to acquire the requisite fulfilment and supply chain capabilities. European Business Review
Marketing channels, retailers and wholesalersMayanka Singh
1. The document discusses marketing channels and different types of intermediaries involved in making products available to consumers such as retailers, wholesalers, distributors.
2. It describes different channel structures from zero-level channels involving direct sales to consumers to multi-level channels involving multiple intermediaries.
3. The roles and functions of different channel members as well as important considerations in designing, managing, and integrating marketing channels are summarized.
Marketing channels help facilitate the exchange of goods between producers and consumers by reducing the number of transactions needed. They fill gaps in time, space, quantity, and variety between production and consumption. Common types of distribution channels include retailer channels, wholesaler channels, agent/broker channels, and direct channels. Managing channel relationships and potential conflicts is important for effective multichannel distribution.
A Strategic Approach: GenAI in EducationPeter Windle
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Digital Artefact 1 - Tiny Home Environmental Design
International sales & distribution management(isdm)
1. International Sales & Distribution Management
Project Report
On
'Distribution Channel System followed by Wal-Mart'
Submitted to: Submitted By:
Prof. Sachin Sinha Shubham Suman
2. FT-IB-11-344
WAL-MART
slogan: “Low prices. Every day. On everything”
Wal-Mart Stores, Inc.(branded as Walmart) is an American public corporation that runs a chain of
large, discount department stores. In 2008 it was the world’s largest public corporation by revenue,
according to the Fortune Global 500 for that year. Wal-Mart is the largest majority private employer
and the largest grocery retailer in the United States. It also owns and operates the Sam’s club retail
warehouse in North America.
Wal-Mart’s operations are organized into three divisions: Wal-Mart Stores U.S., Sam’s Club,
and Wal-Mart International. The company does business in nine different retail formats:
supercenters, food and drugs, general merchandise stores, bodegas (small markets), cash and carry
stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants.
Wal-Mart enjoyed a 50 percent market share position in the discount retail industry with its
nearly 3,000suppliers. Though Wal-Mart may have been the top customer for consumer product
manufacturers, it deliberately ensured it did not become too dependent on any one supplier; no single
vendor constituted more than 4 percent of its overall purchase volume.
3. The current ratio in the last 5 years is below 1, between 0,8 and 0,9 (Walmart, annual report
2009). This is typical of strong distribution companies that pay their suppliers in 1,2 or 3 months but
they cash immediately from customers. They use this lag as a financial source.
Distribution channel system:
A distribution channel is the method a company uses to get its products into the marketplace for
consumer use. The traditional channel goes from supplier, manufacturer, distributor, wholesaler and
retailer. Two types of distribution channels exist: indirect and direct.
Indirect Channel
The indirect channel is used by companies who do not sell their goods directly to consumers.
Suppliers and manufacturers typically use indirect channels because they exist early in the supply
chain. Depending on the industry and product, direct distribution channels have become more
prevalent because of the Internet
Direct Channel
A direct distribution channel is where a company sells its products direct to consumers. While direct
channels were not popular many years ago, the Internet has greatly increased the use of direct
channels. Additionally, companies needing to cut costs may use direct channels to avoid middlemen
markups on their products.
The Importance of Distribution channel system
Most producers use intermediaries to bring their products to market. They try to develop
a distribution channel system to do this. A distribution channel system is a set of interdependent
organizations that help make a product available for use or consumption by the consumer or business
user. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or
retailers who help move a product from the producer to the consumer or business user.
A company’s channel decisions directly affect every other marketing decision. Place decisions, for
example, affect pricing. Marketers that distribute products through mass merchandisers such as Wal-
4. Mart will have different pricing objectives and strategies than will those that sell to specialty stores.
Distribution decisions can sometimes give a product a distinct position in the market. The choice of
retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass
merchandisers to sell mid-price-range products while they distribute top-of-the-line products through
high-end department and specialty stores. The firm’s sales force and communications decisions
depend on how much persuasion, training, motivation, and support its channel partners need.
Whether a company develops or acquires certain new products may depend on how well those
products fit the capabilities of its channel members.
Some companies pay too little attention to their distribution channels. Others, such as FedEx, Dell
Computer, and Charles Schwab have used imaginative distribution systems to gain a competitive
advantage.
Functions of Distribution Channels
Distribution channels perform a number of functions that make possible the flow of goods from the
producer to the customer. These functions must be handled by someone in the channel. Though the
type of organization that performs the different functions can vary from channel to channel, the
functions themselves cannot be eliminated. Channels provide time, place, and ownership utility.
They make products available when, where, and in the sizes and quantities that customers want.
Distribution channels provide a number of logistics or physical distribution functions that increase
the efficiency of the flow of goods from producer to customer. Distribution channels create
efficiencies by reducing the number of transactions necessary for goods to flow from many different
manufacturers to large numbers of customers. This occurs in two ways. The first is called breaking
bulk. Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only
one or a few at a time to many different customers. Second, channel intermediaries reduce the
number of transactions by creating assortments—providing a variety of products in one location—
so that customers can conveniently buy many different items from one seller at one time. Channels
are efficient. The transportation and storage of goods is another type of physical distribution
function. Retailers and other channel members move the goods from the production site to other
locations where they are held until they are wanted by customers. Channel intermediaries also
perform a number of facilitating functions, functions that make the purchase process easier for
customers and manufacturers. Intermediaries often provide customer services such as offering credit
to buyers and accepting customer returns. Customer services are oftentimes more important in B2B
markets in which customers purchase larger quantities of higher-priced products.
Some wholesalers and retailers assist the manufacturer by providing repair and maintenance
service for products they handle. Channel members also perform a risk-taking function. If a retailer
buys a product from a manufacturer and it doesn’t sell, it is ―stuck‖ with the item and will lose
money. Last, channel members perform a variety of communication and transaction functions.
Wholesalers buy products to make them available for retailers and sell products to other channel
members. Retailers handle transactions with final consumers. Channel members can provide two-
way communication for manufacturers. They may supply the sales force, advertising, and other
marketing communications necessary to inform consumers and persuade them to buy. And the
channel members can be invaluable sources of information on consumer complaints, changing tastes,
and new competitors in the market.
The Internet in the Distribution Channel
5. By using the Internet, even small firms with limited resources can enjoy some of the same
competitive advantages as their largest competitors in making their products available to customers
internationally at low cost. E-commerce can result in radical changes in distribution strategies. Today
most goods are mass-produced, and in most cases end users do not obtain products directly from
manufacturers. With the Internet, however, the need for intermediaries and much of what has been
assumed about the need and benefits of channels will change. In the future, channel intermediaries
that physically handle the product may become largely obsolete. Many traditional intermediaries are
already being eliminated as companies question the value added by layers in the distribution channel.
This removal of intermediaries is termed disintermediation, the elimination of some layers of the
distribution channel in order to cut costs and improve the efficiency of the channel.
'Distribution Channel System followed by Wal-Mart'
About 85 percent of all the merchandise sold by Wal-Mart was shipped through its distribution
system to its stores. Wal-Mart used a ―saturation‖ strategy for store expansion. The standard was to
be able to drive from a distribution center to a store within a day. A distribution center was
strategically placed so that it could eventually serve 150-200 Wal-Mart stores within a day. Stores
were built as far away as possible but still within a day’s drive of the distribution center; the area
then was filled back (or saturated back) to the distribution center. Each distribution center operated
24 hours a day using laser-guided conveyer belts and cross-docking techniques that received goods
on one side while simultaneously filling orders on the other. The company owned a fleet of more
than 3,000 trucks and 12,000 trailers. (Most competitors outsourced trucking.) Wal-Mart had
implemented a satellite network system that allowed information to be shared between the
company’s wide network of stores, distribution centers, and suppliers. The system consolidated
orders for goods, enabling the company to buy full truckload quantities without incurring the
inventory costs.
The key to Wal-Mart’s supply chain
Wal-Mart is committed to improving operations, lowering costs and improving customer
service. But the key to retailer Wal-Mart’s success is its ability to drive costs out of its supply
chain and manage it efficiently. Many supply chain experts refer to Wal-Mart as a supply chain-
driven company that also has retail stores. Wal-Mart’s company philosophy is to be at the leading
edge of logistics, distribution, transportation, and technology. The Wal-Mart business model
would fail instantly without its advanced technology (Wal-Mart has the largest IT systems of any
private company in the world) and supply chain(Wal-Mart has made significant investments in
supply chain management).
Wal-Mart’s business model and competition
Wal-Mart’s business model is based on a low price strategy and low transportation costs
allow it to sell its products at the lowest possible prices. In return for its strategy (Everyday Low
Price Strategy), Wal-Mart’s suppliers – both large and small – either break even or make profit
supplying at Wal-Mart’s stores. But the real winners are Wal-Mart’s customers (approximately
175 million every week) who save thousands of dollars buying at low prices. Since Wal-Mart
stores began selling groceries almost three dozen regional grocery suppliers have struggled to
match or simply run out of business. Last year (2007), Wal-Mart’s annual sales were $350 billion
6. and it had more than 7,000 stores, 120 distribution centres and operations spanning 15
countries. Nearly two million employees at Wal-Mart focus on cost, customers and continuous
improvement on a daily basis.
Wal-Mart’s one-store-at-a-time, RFID and just-in-time distribution
approach
Every Wal-Mart store operates like a small company. Store managers are trained
to manage one store at a time, one department at a time, and one customer at a time.
Decisions are made by store teams to make the individual stores operate at its best with
superior in-store execution. With established vendor partnerships with top manufacturers,
Wal-Mart has implemented advanced logistics solutions like RFID (radio frequency
identification). RFID solutions help maintain lower costs, identify out-of-stocks and
increase sales. Distribution centres instead of warehouses, automated replenishment
and cross-docking technology also reduce inventory carrying costs.(“Why Wal-Mart´s
supply chain is so successful?”, http://supply-chain-case-studies.blogspot.com/)
Monitoring supply chain risk
In 2008 Wal-Mart introduced Supply Risk Monitoring (SRM)service as a requirement
to Wal-Mart’s supplier community. This after Wal-Mart made an agreement with Strategic
Forecasting, Inc. (Stratfor) to assess and rank security risk for countries in its global supply
chain.
Stratfor is a leading private intelligence company and its serviceswill enable Wal-Mart to
identify risks with supply chain infrastructure in countries (ranked as high, medium or
low) within its supply chain using a unique analytical methodology. The countries will be
assessed on risks associated with terrorism, insurrection, crime, the political and regulatory
environment, natural disasters, including various other factors related to supply chain
infrastructure. This will help Wal-Mart to produce a quantifiable measure of the actual risk to
a nation’s supply chain and thereby determine appropriate supply chain security counter-
measures. It can thus quickly warn of emerging threats and prevent disruption of deliveries of
goods to major markets around the world.
Consolidation Strategy in Wal-Mart
Remixing the Inbound Channel
Shippers are always on the lookout for ways to speed product from source through supply
chains to the consumer, and Wal-Mart’s ―Remix‖ distribution strategy is going to give its
vendors a new way to reach the goal whether they’re ready for it or not.
Remix is Wal-Mart’s name for a vendor transportation consolidation
program on a colossal scale.
Between 2006 and 2007, Wal-Mart plans to transform its distribution system of 120
company warehouses fed by thousands of vendors moving 2 billion cases of food and 2.7 billion
packages of other merchandise to 3,700 U.S. stores annually. The Bentonville, Ark.-based chain
is forging a two-track inbound logistics system that will separate high-turnover goods from
slower-selling products to reduce stock-outs, especially in its fast-growing grocery stores.
7. To do that, Wal-Mart is leaning on its vendors to work with transportation and logistics providers
to consolidate less-than-truckload deliveries into truckload freight before it reaches a store. If
successful, the system will change the way vendors and supply chain partners move goods to
Wal-Mart, and because of the company’s size and reach, set an example other high-volume
competitors will be hard-pressed not to follow.
It will also sharply expand Wal-Mart’s distribution channels through certain gateways in ways
that will ripple across strategies for handling and moving imported goods well beyond Wal-
Mart’s own operations
The largest shippers have the expertise, resources and technology to move beyond a simple role
as a buyer of goods. They want to dictate not only when shipments are delivered, but how and
where, whether to a third-party warehouse or the company’s own, or direct to the store.
For Wal-Mart, the Remix strategy also means a realignment of supply chain relationships.
The shipper asserts more control in this case by encouraging vendors to coordinate their LTL
shipping schedules with logistics providers and carriers so they arrive as full truckloads at
stores. Inventory management becomes more the responsibility of the vendor and logistics
provider. Investments may have to be made in technology to support a much more complex
loading of trucks and other transport modes. Many of these costs will be borne by the vendor or
third-party provider.
―I’ve heard the argument,‖ said Tyler Ellison, vice president, global client group for Schneider
National. ―But what I would contend is that Wal-Mart’s Remix initiative at the end of the day
eliminates waste and cost from the supply chain. … Even if we have to add costs in some areas,
the cost of being out of stock is higher.‖
At its heart, Remix is about avoiding stock-outs of popular, fast-moving items, from paper towels
and toothpaste to laundry detergent and fresh food.
Stock-outs became an issue for Wal-Mart after the mass merchandiser ramped up its in-store grocery
units in the 1990s. At the same time, Wal-Mart turned from its focus on American-made goods to
becoming a huge importer, particularly from Asia, lowering the cost of the goods but adding
complexity and cost to a supply chain now built on inbound logistics.
The initiative aims to free distribution workers from the need to sort manually on receiving docks the
higher-velocity items from slower-moving goods, thus slowing replenishment of both.
Wal-Mart wanted more and smaller deliveries faster, something of a challenge when goods are
coming from overseas in bulk.
That would mean vendors sending more LTL shipments, which would push up their transportation
costs. Instead, Wal-Mart suggested vendors partner with carriers and logistics providers to have their
LTL freight consolidated into truckloads at third-party distribution centers. Systems were also
encouraged to pack freight for optimal unloading and distribution at stores to reduce overlapping or
redundant delivery stops.
8. The company offers its online Retail Link software for vendors to enter and review purchase orders,
make carrier appointments and get data on consolidated loads. It compiles vendor scorecards to
assess on-time performance and other metrics.
Remix relies heavily on technology. CaseStack has what Sanker called a consolidation engine
installed into a combined transportation and warehouse management system to make truckloads
easier to pack, and a transportation optimizer that reviews roughly 1,000 carriers for the best routes
and price.
“You have to be able to move really fast in a consolidation program,‖ Sanker said. ―Instead of two
pallets of three products, you might have five cases, two pallets, six boxes, which means a lot more
picking. The system has to be able to kick out the right information and instructions to everyone in
the warehouse. … If you tried to do it manually, you’d be buried.‖
Late or missed deliveries are intolerable in an environment without safety stock. As a result, he said,
―We’re always one day away from a Wal-Mart distribution center. … The probability of a service
failure is reduced dramatically the fewer miles you have to drive.‖
To support Remix, more logistics providers and carriers are turning to barcode-enabled mobile
computers to update inventory databases on the fly. Accurate, near-real time data from vendors and
warehouses feeds higher-level systems Wal-Mart needs to fine-tune its new distribution system.
“Once you know what you’re selling and how fast,‖ McNerney said, ―you can work on your demand
forecast.”
For those who send the products to the shelves, the judgment is more complicated.
Although he wouldn’t name names, Conover said vendor reaction to the new program breaks down
into roughly two camps. ―There’s a concern because vendors see the increase in supply chain costs.
Their view is that they have to bear the expense of it,‖ he said. ―The other camp also looks at the
increased costs to their supply chain, but recognizes if they do it right they will see their sales
increase,‖ and they may enjoy an advantage over non-participating competitors.
As results accumulate, the ripple effects of Remix will spread from gateways to points deeper in
supply channels, observers said.
―As Wal-Mart pushes back inventory, that’s going to force vendors to relocate distribution centers
and such closer to the retailers own distribution facilities and stores,‖ said Barry Hibbard, vice
president of real estate at Tejon Ranch, a 426-square-mile multi-use development in Southern
California’s Inland Empire. Those relocations will in turn have ripple effects on the distribution
networks of vendors to other retailers.
―Wal-Mart’s focus on the end customer is what makes them great,‖ he said. Reducing the biggest
merchandiser’s cash-to-cash cycle, as Remix is expected to do, will benefit not only the retailer but
eventually its partners, as new efficiencies help each move other clients’ freight on the same swift
schedules. Keeping Wal-Mart’s shelves stocked keeps customers, but also focuses the company’s
supply chain partners in ways that benefit their other clients.