MIS is a system that provides information to help manage organizations efficiently. The objectives of MIS are to improve decision making and provide accurate, up-to-date information on performance. Common MIS applications include ERP, SCM, CRM, and KMS. Walmart pioneered the hub-and-spoke distribution model in the 1970s and has continuously invested in technology like EDI, RFID, and computer systems to optimize inventory management and reduce costs through its supply chain.

1. MIS in
GROUP-5
• Sreedhar G.
• Mayank Tripathi
• Poonam Khaitan
• Shivam Mehrotra
• Shaurya Vikram SinghPowerpoint Templates Page 1

2. Management Information System
• System that provides information needed
to manage organizations effectively and
efficiently.
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3. Objectives of MIS
• To improve the Management decision
making
• By providing accurate and up-to-date
information about the key aspects of
organizational performance.
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4. Applications
• ERP(Enterprise Resource Planning)
• SCM(Supply Chain Management)
• CRM(Customer Relationship
Management)
• KMS(Knowledge Management System)
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5. History of Walmart
• Sam Walton, a businessman from
Arkansas, began his retail career when he
started work on June 3, 1940.
• On July 2, 1962, Walton opened the first
Walmart Discount City store located at 719
Walnut Ave. in Rogers Arkansas.
• Has undergone several changes in its
image(specifically logos)
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7. • This phenomenal growth of Walmart is
attributed to its continued focus on
customer needs and reducing cost through
efficient supply chain management
practices
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8. Hub and Spoke System
• In the early 1970s, Walmart became one
of the first retailing companies in the
world to centralize its distribution
system, pioneering the retail hub-and-
spoke system
• Goods were centrally ordered, assembled
at a massive warehouse, known as
„distribution center‟ (hub), then dispatched
to the individual stores (spoke).
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9. • The hub and spoke system enabled
Walmart to achieve significant cost
advantages by the centralized purchasing
of goods in huge quantities; and
• distributing them through its own logistics
infrastructure to the retail stores spread
across the U.S.
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10. Walmart‟s Procurement
• The need to reduce purchasing costs
and offer the best price to the customer.
• The company directly procured from
manufacturers, by passing all
intermediaries.
• Walmart finalizes a purchase deal only
when it is fully confident that the products
being bought is not available else where
at a lower price.
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11. • Walmart spends a significant amount
of time meeting vendors and
understanding their cost structure.
• By making the process transparent, the
retailer can be certain that the
manufacturers are doing their best to cut
down costs.
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12. Using EDI for Procurement
• The computer systems of Walmart were
connected to those of its suppliers.
• EDI enabled the suppliers to download
purchase orders along with store-to-store
sales information relating to their products
sold.
• On receiving information about the sales
of various products, the suppliers shipped
the required goods to Walmart‟s
distribution centers.
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13. Inventory Management
• Walmart invested heavily in IT and
communication systems to effectively track
sales and merchandise inventories in
stores across the country.
• With the rapid expansion, it was essential
to have a good communication system.
• Hence, Walmart set up its own satellite
communication system in 1983.
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14. • Walmart was able to reduce unproductive
inventory by allowing stores to manage
their own stocks, reducing pack sizes
across many product categories, and timely
price markdowns.
• Instead of cutting the inventory across the
board, Walmart made full use of its IT
capabilities to make more inventories
available in the case of items that customers
wanted most, while reducing the overall
inventory levels.
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15. • Employees at the stores had the
“Magic Wand,” a hand-held computer
which was linked to in-store terminals
through a radio frequency network.
• These helped them to keep track of the
inventory in stores, deliveries, and backup
merchandise in stock at the distribution
centers.
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16. • Order management and store
replenishment of goods were entirely
executed with the help of computers
through the Point-of-Sales (POS) system.
• Through this system, it was possible to
monitor and track the sales and
merchandise stock levels on the store
shelves.
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17. Voice-based Order Filling (VOF)
• In 1998, Walmart installed a voice-based
order filling (VOF) system in all its grocery
distribution centers.
• Each person responsible for order picking
was provided with a microphone/speaker
headset, connected to the portable (VOF)
system that could be worn on waist belt.
• They were guided by the voice to item
locations in the distribution centers.
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18. • The VOF system also verified quantities
picked, and could respond to a variety
of requests such as providing product detail
(type, price, barcode number, etc.)
• By installing the VOF system, Walmart
eliminated mispicks and product labeling
costs since the system did not require paper
lists and labels to be affixed on the goods.
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19. Quick Replenishment
• Since the floor area of any Walmart
store varied between 40,000 to 200,000
square feet, movement of goods within the
store was an important part of logistics
operations.
• Walmart made significant investments in
IT to quickly locate and replenish goods
at the stores.
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20. Pretty Darn Quick displays
• The company asked its suppliers to ship
goods in store-ready displays called pretty
darn quick (PDQ) displays.
• Goods were packed in PDQ displays that
arrived at the stores ready to be boarded on
the racks.
• Walmart‟s employees could directly replace
the empty racks at the stores with fully
packed racks, instead of refilling each and
every item at the racks.
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21. Retail link system
• In 1991, Walmart had invested
approximately $4 billion to build a retail
link system.
• More than 10,000 Walmart retail suppliers
used the retail link system to monitor the
sales of their goods at stores and
replenish inventories.
• Details of daily transactions (~10 million
per day) were processed through this
system.
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22. • Retail Link connected Walmart‟s EDI
network with an extranet, accessible to
Wal-Mart‟s thousands of suppliers.
• The suppliers could find out how their
product was performing against
competitors products in a particular
product category.
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23. • Walmart owned the largest and most
sophisticated computer system in the
private sector.
• The company used Massively Parallel
Processor (MPP) computer system to
track the movement of goods and stock
levels.
• All information related to sales and
inventories was passed on through an
advanced satellite communication system.
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24. Collaborative
Planning, Forecasting and
Replenishment
(CPFR)
• By the mid 1990s, Retail Link had
emerged into an Internet-enabled SCM
system whose functions were not confined
to inventory management alone
• It also covered collaborative
planning, forecasting and replenishment
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25. • In CPFR, Walmart worked together
with its key suppliers on a real-time
basis by using the Internet to jointly
determine product-wise demand forecast.
• CPFR is defined as a business practice for
business partners to share forecasts and
results data through the Internet, in order
to reduce inventory costs while at the
same time, enhancing product availability
across the supply chain.
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26. CPFR: Hard to implement
• Though CPFR was a promising supply
chain initiative aimed at a mutually
beneficial collaboration between Walmart and
its suppliers , its actual implementation
required huge investments in time and money
• A few suppliers with whom Walmart tried to
implement CPFR complained that a significant
amount of time had to be spent on developing
forecasts and analyzing sales data
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27. VAN EDI vs Web-EDI
• In October 2002, Walmart asked its
14,000 suppliers to switch over from
the existing Value Added Networks
(VAN) EDI to web enabled EDI
• VANs route and manage EDI messages
for their customers
• By implementing web-EDI, Walmart can
save millions of dollars in the form of
license fees to the private VANs
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28. VAN EDI WEB EDI
Transactions between the business Transactions between the business
partners are routed and managed partners are routed through the
through Private Value Added internet.
Networks.
It takes time for the messages to be Direct online communication between
communicated between the trading the trading partners.
partners.
Transactions are not totally secure as Security of transactions is relatively
they are routed through private high as the transactions are routed
players. through a secured web server with a
128 bit end-end security.
Charge transaction fees from those As internet is accessible to all ,no
who utilize the service. Transaction transaction fee is charged.
costs are high.
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29. RFID Technology
(Radio Frequency Identification)
• In efforts to implement new technologies
to reduce costs and increase the
efficiency, in July 2003, Walmart asked
its top 100 suppliers to be RFID compliant
by January, 2005.
• Walmart planned to replace bar-code
technology with RFID technology.
• They believed that this replacement would
reduce its supply chain management costs
and enhance efficiency.
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30. • Because of the implementation of
RFID, employees were no longer
required to physically scan the bar
codes of goods entering the stores and
distribution centers, saving labor cost and
time.
• Walmart expected that RFID would reduce
the instances of stock-outs at the stores.
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32. CONCLUSION
• Walmart has been able to efficiently
USE and UPGRADE its IT tools
, namely:
• EDI
• VOF
• CPFR
• RFID
• Achieved EFFICIENCY and COST
MINIMIZATION
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33. Thank You
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