PRESENTATION ON CASE STUDY

WALMARTS SUPPLY CHAIN MANAGEMENT PRACTICES

Presented By

Priyanka Bhardwaj Lovisha Sharma Anil Tiwari Sandeep Yadav

SAM WALTON COMPANYS FOUNDER

 World largest retailing company .

Revenues of $219.81 million (2001-02) . Approx. 1,170 stores across the world. Employee strength approx. 1.28 million. Revenue of $378.799 million(2008).

WAL-MART has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management. Discuss in detail the distribution & logistic system adopted by WalMart..

DISTRIBUTION SYSTEM
Procured goods directly from manufacturers.
Establish long term relationship with vendors. Barcode Technology.

Hand-Held computer system.

LOGISTICS MANAGEMENT

Distribution centers were serviced by more

than 3500 company owned trucks. Hired only experienced drivers. Drivers had to report their hours of service to a coordinator daily. Private Fleet Driver Handbook. Cross- Docking

How IT benefited Wal-Marts Inventory & logistic management

 Satellite communication system.

Information technologies benefit in Inventory management

Expansion of Wal-mart stores in the US Wal-mart set up its own SCS in 1983

By using IT capabilities Wal-Mart check & make the availability

of customers demand. Automated Reordering System.

Radio frequency system.

Entered into collaboration with P & G Maintaining the inventories in its stores ARS as a link b/w P&G and all computers, stores & distribution channels

Algorithm system to forecast exact quantities.

Proofs to be magic wand Helps in keeping track of the inventory in stores

Centralized inventory data system

Contd
Centralized Inventory data system.
Bar Coding & fixed optical reader for
efficient picking, receiving & proper inventory control & for physical counting of inventory.

Internet enabled technologies.

Information technologies benefit in logistic management

Accelerated Delivery system
Various technologies made supply chain more convenient Irrespective of geographical area

Cross docking
Make distribution process more efficient. Finished goods directly supplied to customers from manufacturing plant. Reduces handling & storage of finished goods. Eliminating the role of distribution centers &stores.

By making effective use of computers in all its companys operation, WalMart was successful in providing uninterrupted services to its customers, supplier, stock holders and trading partners.

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Q3- What were the supply chain

management process adopted by WalMart and how far were they effective?Dicuss.

 1- Procurement and Distribution.

Procured Directly from manufacturers. Generally, preferred local and regional vendor and suppliers. Use of barcode technology and hand held computer system. How it is effective? Low price to customers. Less cost effective. Help supervisor to monitor their employees closely. Help to satisfy customer need quickly.

2-Logistic Management

Use more than 3,500 trucks for transportation. Hire only experienced driver. Transfer from supply chain to demand chain. Use five type of cross docking. How it is effective? Goods picked directly from manufacturer. Reduce the handling and storage charges.

3-Inventory Management

Use of IT and Communication system. Setup own satellite communication. Collaboration with P&G. Use of algorithm system and bar-coding system. Tie-up with Atlas Commerce. How it is effective? Help to communicate with stores. Help to reduce unproductive inventory. Help in Distribution of needed product. Help in accurate distribution of goods.

Q4: What was the nature of benefits derived by Wal-mart from the efficient supply chain management practices and how far it has contributed to its sustainable competitive advantage? Explain.

Low transportation cost(3% as compared to

5%) Reduction in lead time (within 48 hours) Wal-Mart can replenish the shelves four times faster than its competitors Purchase huge quantities Good bargaining power (price variation) competitive price (higher discounts) benefit to consumers

Continue..

Accurate forecasting of inventory levels Increased warehouse space Reduction in safety stock Better working capital utilization Elimination of old stocks and maintained
quality of goods

Thank you