Walmart was founded in 1962 by Sam Walton. It now operates over 8,500 stores globally under 55 names. Walmart pioneered an efficient supply chain and logistics system focused on reducing costs. This allowed it to procure goods directly from manufacturers and offer consistently low prices to customers, fueling its rapid growth to become the world's largest company by revenue. Key to its success was heavy investment in technology and data systems to track inventory and sales across its vast network of stores.

1. Demonstrated by:-
Nishant Bindra
P. Suraj
Parag Saini
Yashi Arora
Priyanka Shee
Priyanka Singh

2. INTRODUCTION
The company was founded by Sam Walton in 1962,
Wal-Mart has 8,500 stores in 15 countries, under 55 different names.
The main strength of this company is logistics & supply chain
management.
Wal-Mart focus on improving sales & innovative technologies, constantly
reducing cost.
Wal-Mart operated more than 3500 discount stores.
Competitor of this company are: Carrefour ,Ahold, Metro AG .

3. REVENUE

4. BACKGROUND
Walton was born in 1918
1940-set up own store
1969-80s-expanded business
1984-640 Wal-Mart stores
1992-Joint venture with Cifra
1997-largest volume discount retailer
2002-largest company in terms of revenues

5. SUPPLY CHAIN MODEL

6. PROCUREMENT AND DISTRIBUTION
The main emphasis of Wal-Mart was to reduce its purchasing
cost and to offer the best prices to all its customers.
The goods available at Wal-Mart were really low which the
customers were sure that they would not get at any other store.
Goods were directly procured from manufacturer, passing all the
intermediaries
Big manufacturers like proctor and gamble were also spared.
The manufacturing process of it was made transparent so that
manufactured had any way to grab extra price.

7. CONTINUED….
• Wal-Mart had approx. 40 distribution centers located in
different geographical locations.
• About 85% were available at the stores and those were passed
through distribution centers Automotive and drug products were
directly available to the stores.
• Sophisticated barcode technology and hand held computer system
were easier and more economical.
• The handled computers the packaging department to get accurate
information .

8. LOGISTICS MANAGEMENT
Fast responsive transportation system
More than 3500 company owned trucks
Company hired highly experienced drivers
only

9. TRANSPORTATION
.REPORTING DISTRIBUTION CENTRES
LOADED TRUCKS
RETAIL STORES REPORTING
UNLOADING AT TWO
HOURS GAP

10. LOGISTICS TECHNIQUES
Cross docking:-
MANUFACTURING
f PLANT
CONSUMER

11. LOGISTICS TECHNIQUES
CROSS
. DOCKING
PRE
Opportunistic ALLOCATED
cross docking CROSS
DOCKING
FLOW
THROUGH MANUFACTURING
CROSS CROSS DOCKING
DOCKING
DISTRIBUTOR
CROSS
DOCKING

12. INVENTORY MANAGEMENT
An accelerated delivery system by which stores located within a certain
distance of a geographical center could receive replenishment within a
day.
Wal-Mart invested heavily in IT and communications systems to
effectively track sales and merchandise inventories in stores across the
country
Wal-Mart set up its own satellite communication system in 1983.
Reduce unproductive inventory by allowing stores to manage their own
stocks, reducing pack sizes across many product categories, and timely
price markdowns

13. WALTON SAID……
Walton said, “I can walk in the satellite room, where our
technicians sit in front of the computer screens talking on
the phone to any stores that might be having a problem with
the system, and just looking over their shoulders for a
minute or two will tell me a lot about how a particular day is
going. On the screen, I can see the total of the day’s bank
credit sales adding up as they occur. If we have something
really important or urgent to communicate to the stores and
distribution centers, I, or any other Wal-Mart executive can
walk back to our TV studio and get on that satellite
transmission and get it right out there. I can also go every
Saturday morning around three, look over these printouts
and know precisely what kind of work we have had."

14. WALMART AND P&G
Automated Reordering System:-
LOW STOCK
ITEM
SIGNAL TO
P&G
RESUPPLY ORDER
DISTRIBUTION WALMART
NEAREST P & G
CENTRE STORES
FACTORY

15. CONTINUED
The ‘Magic Wand’
Point-of-Sales (POS) system
Centralized inventory data system
In 1991, Wal-Mart had invested approximately $4 billion
to build a retail link system
used Massively Parallel Processor (MPP)

16. BENEFITS REAPED
Low transportation cost
Priced its goods economically and the prices varied
from day 2 day
Offer higher discounts
Faster inventory turnover
Accurate forecasting of inventory levels

17. CONTINUED…
Increased warehouse space
Estimated old stocks and maintained quality of goods
Bar coding and radio frequency technologies
Cross docking-to reduce inventory cost
Cut down labour cost and other handling cost involved
in loading and unloading

18. STRENGTH
Loyal customers
Great pricing
Good locations
Good benefits for full time employees
Wal-Mart appeals to mostly middle and lower economic clientele
Wal-mart competitive strength is their remarkable logistics
system.

19. CONTINUED.......
Walmart believed the logo of EDLP.
20% prices is lower than other stores.
Walmart not only targeted rural areas but it also
started in dealing with urban areas.
Technology of Walmart is very appreciable that it is
able to invest in to improve their company.