Walmart established itself as the largest retailer in the US through innovative supply chain management practices utilizing information technology. It was an early adopter of technologies like EDI and barcoding to efficiently procure inventory and share sales data with suppliers. Walmart further improved inventory management through voice picking technologies in warehouses, GPS tracking of trucks, and collaborating with suppliers on forecasting through the Retail Link system and CPFR initiatives. Implementing RFID tagging was expected to enhance supply chain visibility and save over $8 billion per year through reduced labor and inventory costs.
Walmart* have done tremendous work on supply chain management. One of the
keys to Walmart’s effective logistical system is the flexibility that it has when
choosing suppliers.
When Walmart negotiates with suppliers and the suppliers know that Wal-Mart
will only pay the most competitive prices. This is because it is very easy for them
to find another supplier of that particular material with a lower price and very few
logistical problems
Another reason that Walmart's prices are so competitive is because they buy in
such large quantities that transportation from one end of the supply chain to
another is not as costly for additional units. Here they focus on bulk and get profit
out of it
This aspect of the logistical system does not come from skill or expertise it simply
comes from the sheer size of the company, but this is still a factor.
Walmart buys so many supplies from different places throughout the world, that
they have the luxury of using bigger trucks and using less fuel to go back and forth.
Also if by chance they have to use shipping services to transport material from one
location to another, Walmart will give them so much business that they will get
huge discounts.
Prepared By Dharmik
This Presentation Explains about the Various Segments of the Retail Giant Walmart's Supply Chain. The CRM, SCM, SRM sections are discussed. We have also done a bit of additional research on the meat Supply at Walmart.
Amazon's European Distribution Strategy Case StudyYASSER ELSEDAWY
Amazon's supply chain challenges in Europe
Amazon.Com was launched on 16th July 1995 by Jeff Bezos. In the beginning, Amazon.com started as an online bookstore, With 25 million titles it became the earth's biggest bookstore but soon diversified. In 2008, Amazon had 8 warehouses in the U.S. and another 15 in the rest of the world. Amazon now has around 50 warehouses, 20 in the US and rest in Canada, France, Germany, Italy, UK, China, Japan. At Present the company is providing three primary customer sets; consumers, Sellers, and developers.
Amazon balances between the cost of distribution and levels of services by having efficient distribution centers and multi-tier inventory networks.
From the available source following PPT explains about the strategy applied by walmart and its opreation management. It deals with its operation of obtaining of materials & its mangement.
Walmart is the largest retailer in the world but it is also one of the multinational corporations to be criticized a lot for its unethical social responsibilities such as discrimination, human rights violations & environmental crimes.
Walmart* have done tremendous work on supply chain management. One of the
keys to Walmart’s effective logistical system is the flexibility that it has when
choosing suppliers.
When Walmart negotiates with suppliers and the suppliers know that Wal-Mart
will only pay the most competitive prices. This is because it is very easy for them
to find another supplier of that particular material with a lower price and very few
logistical problems
Another reason that Walmart's prices are so competitive is because they buy in
such large quantities that transportation from one end of the supply chain to
another is not as costly for additional units. Here they focus on bulk and get profit
out of it
This aspect of the logistical system does not come from skill or expertise it simply
comes from the sheer size of the company, but this is still a factor.
Walmart buys so many supplies from different places throughout the world, that
they have the luxury of using bigger trucks and using less fuel to go back and forth.
Also if by chance they have to use shipping services to transport material from one
location to another, Walmart will give them so much business that they will get
huge discounts.
Prepared By Dharmik
This Presentation Explains about the Various Segments of the Retail Giant Walmart's Supply Chain. The CRM, SCM, SRM sections are discussed. We have also done a bit of additional research on the meat Supply at Walmart.
Amazon's European Distribution Strategy Case StudyYASSER ELSEDAWY
Amazon's supply chain challenges in Europe
Amazon.Com was launched on 16th July 1995 by Jeff Bezos. In the beginning, Amazon.com started as an online bookstore, With 25 million titles it became the earth's biggest bookstore but soon diversified. In 2008, Amazon had 8 warehouses in the U.S. and another 15 in the rest of the world. Amazon now has around 50 warehouses, 20 in the US and rest in Canada, France, Germany, Italy, UK, China, Japan. At Present the company is providing three primary customer sets; consumers, Sellers, and developers.
Amazon balances between the cost of distribution and levels of services by having efficient distribution centers and multi-tier inventory networks.
From the available source following PPT explains about the strategy applied by walmart and its opreation management. It deals with its operation of obtaining of materials & its mangement.
Walmart is the largest retailer in the world but it is also one of the multinational corporations to be criticized a lot for its unethical social responsibilities such as discrimination, human rights violations & environmental crimes.
Example case study of Financial Statement of (Manufacturing and Trade Business) Sole proprietorship and Partnership.
Trial Balance
Cost of Goods Sold
Profit and Loss Statement
Profit Distribution Statement
Balance Sheet
CRM Policies: Comparing Walmart and TargetKatelyn Jones
I put this presentation together for a management class. It was a group project and we had to research a topic and present on it at the end of the semester. My team chose Customer Relationship Management and we compared the CRM policies of retail giants Walmart and Target.
IT in Retail - Advantages and Limitations
Customer Database, Data warehouse, database management, Data mining
Applications of IT in Retail - EDI, RFID, VMI, CPFR
RFID Based Warehouse Management of Perishable ProductsIOSR Journals
Abstract: The changing global market scenario, high level of competition, and faster obsolescence of
perishable products due to short self life and changing customer demand are among the key challenges faced by
perishable supply chains. Supply chains need to compete with growing variety of products, short delivery time,
higher cycle service level, high quality and lower cost. Perishability imposes an intense pressure on managers
as it adds an additional cost of disposal of outdated items, leading to out-of-stock situations and also loss of
company faith. These problems are arising mostly due to the lack of information at every stage of the supply
chains. The inadequate information about product quality, quantity, demand variability, product availability
and lead times creates the bullwhip effect (BWE) at all stages and chains leads to the mismanagement.
RFID technologies, with the appropriate IT infrastructure, would help major distributors and manufacturers, as
well as health-care system, defence industries, and global supply chains in which products and product
shipments must be traced and identified in a non-contact, wireless fashion using a computer network. This
paper presents the impact of RFID in warehouse management of perishable products. It provides mathematical
framework to asses the benefits of RFID in warehouse management. It helps management in the variety of ways
including improvement in receiving and shipping processes, reduction in cycle counting efforts, reduction in
stock outs/excess inventory, decreased counterfeiting, decreased returns, and reduction in inventory loss due to
shrinkage and obsolescence. A sensitivity analysis has been presented at the end of paper which shows the
compound effect of RFID, reduction in lead time and lead time variability. In all scenarios inventory level is
reduced by certain percentage by incorporating RFID.
Keywords— Supply chain management, Perishable product, Inventory, RFID, Warehouse.
Top technology trends in supply chain & logistics industryArindam Bakshi
Technology plays a very important part in determining the success of a supply chain. This e-book is primarily meant to inform you about the present day technologies that are heavily involved in determining the efficiency and productivity of the logistics and supply chain industry.
I presented the topic \'Supply Chain Management in 21st Century\' during a technical paper presentation event organized by Mechanical Engineers Students Association (MESA). This ppt covers all the material included in my presentation
2. Walmart
Walmart, an American multinational retail corporation
that runs chains of large department and warehouse
stores
Established 1962, Arkansan-USA
Sam Walton- Founder & Mike duke- current CEO
Successful due to its IT usage in SCM
3. Introduction to case
1990 –Superseded ‘K-Mart’ rival retail chain as one of the
largest retailing chain in US
1991- Superseded ‘Sears Roebuck & Company’ and
became the largest retailing chain in US
In November 2003, Wal-Mart, world’s largest retailer,
planned to replace bar code technology with RFID.
Objective: To enhance supply chain efficiency
Expected they could save $8.35 million per year primarily
in labor costs
4. Background Note
Wal-Mart known for innovative business practices
One of the first retailing companies to centralize
distribution system.
Always among the front runners in employing IT to
manage its supply chain processes.
5. Using IT in supply chain
management
Using EDI for procurement
- EDI saved time and made procurement efficient.
- Using the bar code scanners, an analysis of daily, weekly,
monthly sales data helped the store manager determine
what products were selling and at what quantity.
- Accordingly, the store manager would place orders in the
manufacturing division.
EDI=Electronic Data Interchange
6. Using IT in supply chain
management
In 1977, Wal-Mart set up a computer terminal network
(CTN) to establish a communication link between its
stores and the company headquarters
Real time business operations
In 1978, Wal-Mart set up its first fully automated
distribution center
7. Using EDI for procurement
Wal-Mart placed orders for huge quantities of goods
with its suppliers
Cost of sales worked out to be 2-3 %(very low from
industry average)
Information of product, manufacturer, price was
recorded on computer system
That information was passed to centralized data
warehouse
8. Using EDI at Wal-Mart
Analysis of daily, weekly, monthly sales data helped store
manager to determine which products were sold in
which quantities
So that they can place purchase order
Edi also helped suppliers
Right merchandize at the right time, and have it at right
place at right price
9. Using IT in supply chain
management
Using voice based technologies: Enhancing warehouse
and logistics management
Wal-Mart could replenish stock at any of its 1525 stores in
US within 24 hours
Cross-docking
It enabled the company to receive goods and dispatch
them to stores in lees than a day
How it works at distribution centers?
10. Using IT in supply chain
management
It installed voice based order filling(VOF) system in all
distribution centers
Is consisted portable Voice Recognition Talkman
Terminals(VRTT) and radio module on company’s wireless
LAN
It eliminated mis-picks and product labeling costs since
VOF didn’t require paper lists labor
11. How to quickly locate &
replenish goods?
Store ready displays called PDQ(pretty darn quick)
displays
Time saved per employees were not much but
aggregate time saved was quite good
12. GPS
GPS system in communication in trucks
Any truck can be located
Drivers could activate system by voice and interact with
staff
13. Using IT in supply chain
management
The Retail Link system- Supporting Inventory Management
Retail link connected EDI network to extranet ,accessible
to all suppliers
Provided suppliers historical sales data of 24 months,
allowed them to track invoice, can make demand
forecast
Suppliers could also study competitors products demand
14. Using the Internet in Supply chain
Management
CPFR (Collaborative Planning Forecasting
Replenishment)
Real time bases to determine product wise demand
forecast
Wal-Mart shared past data, customer data,
demographic data, stock positions
Both forecasted demand individually and then co-
operated
Reduced inventory cost
Product availability across supply chain
15. As a result lead time was cut to 11 days from 21 days
On-hand inventory was reduced by two weeks
Sales grew by $8.5 millions in six months
Later on it was implemented to other stores
By 1990’s, about 90% of suppliers were doing business
through Retail Link
16. Barriers to CPFR
Lack of discipline to execute primary phases
Promotions and new items events are not jointly planned
Ineffective replenishment in response to demand
fluctuations
Trading partners focus on traditional supply chain steps
Scalability and critical mass
17. Recent Supply Chain
Initiatives
2001- Global Procurement Division[Shenzhen, China
Exchange of sales and inventory data
Best deal procurement from any part of world
Strategy Employed
Identify generic products
Enhance product quality
reduce cost by collaborating
2001- copy paper – increased sales
[ 46% in UK, 94% in Federal Republic of Germany,
38% in Canada, 25% in US]
18. Recent Supply Chain
Initiatives
October 2002- Asked suppliers to replace VAN-EDI to
Web based EDI
Direct online communication between trading partners
No transaction costs
Highly secured
Saved millions[ VAN-EDI cost $200 Billion]
No licensing fees
July 2003 – Asked suppliers to place RFID tags on goods,
packed in pallets and crates
VAN-EDI = Value Added Network-EDI
RFID = Radio Frequency Identification
19. Benefits from RFID
Drastic decrease in Stock out situations
From $400 million to $1.2 billion for P&G
Lesser labor requirements
Almost $6.34 billion yearly
Decrease in merchandise thefts
Almost $2 billion
Real time tracking of consumption patterns
Would help enhance JIT Inventory management system
Decrease in stock levels by around 25%[IBM]
Total savings expected to be 8.34 billion per year
20. Problems
An estimated cost of $20 million to suppliers
50% of this is integration of system with software and
modification in soft wares
Not a proven technology
Not compatible with liquids and metal packaging