Wal scm
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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.
Wal scm
- 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
- 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.