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MIS in Walmart


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MIS in Walmart

  1. 1. PRESENTED TO : Sir Mahesh Ahujha PRESENTED BY : Zeeshan Ali Khan
  2. 2.  Information system:  Set of interrelated components  Collect, process, store, and distribute information  Support decision making, coordination, and control  Information vs. data  Data are streams of raw facts  Information is data shaped into meaningful form
  3. 3.  System that provides information needed to manage organizations effectively and efficiently.
  4. 4.  To improve the Management decision making  By providing accurate and up-to-date information about the key aspects of organizational performance.
  5. 5. SAM WALTON (MARCH 29, 1918 – APRIL 5, 1992) 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) 
  6. 6.     WalMart is the largest and most profitable retailer on the earth the Worlds second largest public corporation Walmart has 8,500 stores in 15 countries, under 55 different names And have around 2 Million employees
  7. 7.  We save people money so they can live better
  8. 8.  This phenomenal growth of Walmart is attributed to its continued focus on customer needs and reducing cost through efficient SCM Practices.
  9. 9.  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.
  10. 10.  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.
  11. 11.  In the early 1970’s Walmart introduced the centralized distribution system. HUB & SPOKE  Goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ (hub), then dispatched to the individual stores (spoke).
  12. 12.  The hub and spoke system enabled Walmart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities;
  13. 13.  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.
  14. 14.  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.
  15. 15.  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.
  16. 16.   Jane data center is the data center of WalMart which has a capacity of 460 terabytes of data it has helped Wal-Mart become the biggest retailer in the world,
  17. 17.  According to the econometric society, WalMart deals with the following data:  Store openings data  Store closing data  It also used a software Called GAUSS DATA SETS for its TPS. Which included:  Sales  Operating profits  Distribution miles
  18. 18. When UNIVERSAL BARCODE was established the manufacturers adopted a common labelling  Wal-Mart became very good at using the information behind the bar code due to its sophisticated technology to track inventory. (as we have discussed earlier in the in the Presentation) 
  19. 19.  Professor Edna Bonacich put it simply:  "The shift in Wal-Mart's power was when it started to really develop its control over information technology”   The key to that was the power of the information that is hidden in the bar code. No one has used the technology as efficiently as Wal-Mart.
  20. 20.    The input of TPS is raw data The processing involves with the summarizing, recording, and merging the data and the output is in the form of report. Example of TPS is Point-of-sales.
  21. 21.   At the supermarket, the cashier has to scan the product with the bar code that the input of system. To use the Barcode the company has to develop Universal Product Code (UPC)
  22. 22.   a standard method for identifying products with numbers and coding those numbers as the type of bar code. And it had many benefits found by Wal-Mart, were it – Ensure accurate pricing – Improve efficiency – Reduce Shrinkage – Improve communications
  23. 23. 1. Data collected and analyzed  2.Observing Merchand -ise flow, overstock, discount  3. Video transmissions, credit card authorizations, and inventory control 
  24. 24.   MIS is the system provides the actual performance report of the company that use in middle management, which created based on the data from TPS. They use a tool called EDI for the MIS
  25. 25.   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
  26. 26. EDI is Used for: 1.Forecasting 2.Planning 3.Replenishing 4.Shipping applications
  27. 27.   DSS should be the effectiveness of decision makers rather than on increasing the efficiency of data storage and retrieval. Some of the benefits of DSS are as follows. 1.DSS improves individual productivity. improves the decision quality and speed up problem solving. improves interpersonal communications. 4. it improves decision making skills. 5. Increase organizational control
  28. 28.  A number of strategic DSS has been implemented. Which are as follows:  sale data warehouse .  including retail link  Walmart collects sales data from stores in its data warehouse ,  Retail link consolidated data into useful reports and distributes it to suppliers with weekly forecasting information .
  29. 29.    It's awesome the way Walmart control its information system. Its accurate enough manage everything. The Satellite System is perfect in collect information & share it easily between the supplier and Walmart.
  30. 30. 