Walmart is an American multinational retail corporation that operates hypermarkets, discount department stores, and grocery stores. It was founded in 1962 in Arkansas and has grown to operate over 11,700 stores in 28 countries. Walmart pioneered supply chain management practices like a hub and spoke distribution system and cross-docking that helped reduce costs and drive its strategy of offering everyday low prices. The company's investments in IT systems and RFID technology further improved inventory management and logistics efficiency.

1. WALMART
PRESENTED BY –
SACHIN KUMAR
VINAY SINGH

2. WALMART
WALMART is an American multinational retail corporation that operates a chain of hypermarkets (also
called supercenters), discount department stores, and grocery stores from the United States,
headquartered in Bentonville, Arkansas. The company was founded by Sam Walton in nearby Rogers,
Arkansas in 1962 and incorporated under Delaware General Corporation Law on October 31, 1969.

3. FACTS ABOUT WALMART
• WALMART operates more than 11,700 stores under 59 company names, with 2.3 million employees
in 28 countries around the world while managing an average of $32 billion in inventory.
• Over the past twenty years, Walmart has become the world’s largest and arguably most powerful
retailer with the highest sales per square foot, inventory turnover and operating profit of any discount
retailer.
• Walmart's investments outside the U.S. have seen mixed results. Its operations and subsidiaries in
Canada, the United Kingdom, Central America, South America, and China are successful, but its
ventures failed in Germany, Japan, and South Korea.
• WALMART has indisputably emerged as a strong No. 2 to Amazon in U.S. e-commerce, with sales up
37% in 202

4. WALMART STRATEGY
EVERYDAY LOW PRICE.
EFFECTIVE USE OF LOGISTICS MANAGEMENT
EFFECTIVE INVENTORY CONTROL
BARGAINING POWER OVER SUPPLIERS
GLOBAL EXPANSION FOR NEW MARKET OPPORTUNITY

5. WALMART SUPPLY CHAIN
MANAGEMENT
Supply chain management is the management of the flow of goods and services and includes all
processes that transform raw materials into final products. It involves the active streamlining of a
business's supply-side activities to maximize customer value and gain a competitive advantage in the
marketplace.
THE PHENOMENAL GROWTH OF WAL-MART IS ATTRIBUTED TO ITS CONTINUED FOCUS ON
CUSTOMER NEEDS AND REDUCING COST THROUGH EFFICIENT SUPPLY CHAIN MANAGEMENT
PRACTICES

6. HUB AND SPOKE SYSTEM
In the early 1970s, Wal-Mart became one of the first retailing companies in the world to centralize its
distribution system.
Under this system, good were centrally ordered, assembled at a massive warehouse, known as
'distribution center'(HUB), from where they were dispatched to the individual stores (spoke).
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.

7. WAL-MART PROCUREMENT
Wal-mart emphasized the need to reduce purchasing cost 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 elsewhere at a lower price
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 the
best to cut down cost

8. LOGISTICS MANAGEMENT
An important feature of Walmart's logistics infrastructure was its fast and responsive transportation
system.
Walmart believed that it needed drivers who were committed and dedicated to customer service.
The company hired only experience drivers who had driven more than 3,00,00 accident free miles
with no major traffic violation.

9. CROSS- DOCKING USED BY
WAL-MART.
To make its distribution process more efficient Walmart also used use of logistics technique called
Cross docking.
In this system the finished goods was directly picked up from manufacturing plant sorted out and
then directly supplied to the customers.
This system reduced the handling and storage of finished goods virtually eliminating the role of
distribution centers and stores.
In cross docking the manufacturer directly forwarded the goods to a place called the staging area.
The good were packed here according to the orders received from different stores and then directly
sent to the respective customers.

10. INVENTORY MANAGEMENT
Walmart invested Heavily in IT and communication system 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.
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 mark downs.
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 its items that customers wanted the most ,while reducing the overall inventory levels.
WAL*MART The 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.

11. RFID TECHNOLOGY ( Radio
Frequency Identification)
Efforts to implement new technologies to reduce cost and increase the efficiency in July 2003
Walmart asked its top hundred suppliers to be RFID compliant by January 2005.
The company believe that this replacement would reduce its supply chain management cost and
enhance efficiency.
WAL*MART Because of the implementation of RFID employees were no longer required to physically
scan the barcode 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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