Group 14- Remya MIS

8/7/2019 Group 14- Remya MIS

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MANAGEMENT

INFORMATION SYSTEMIN

WAL-MARTGroup 14

Archana S

Aswathy Chandra

Remya R S

Shruti Suresh

Sowmya M


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MANAGEMENT INFORMATION SYSTEM

A management information system (MIS) is a system

or process that provides information needed to

manage organizations effectively

Management information systems are distinct from

regular information systems in that they are used to

analyze other information systems applied in

operational activities in the organization.


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HISTORY OF WAL-MART

Sam Walton, a businessman from Arkansas,began his retail career when he started work onJune 3, 1940,

He opened a new Ben Franklin franchise inBentonville, Arkansas but called it

"Walton's Five and Dime.

On July 2, 1962, Walton opened the first Wal-MartDiscount City store located in Rogers, Arkansas.


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WAL-MART'S SUPPLY CHAIN

MANAGEMENT TECHNIQUE

Wal-Mart's success is solely due to their efficiency insupply chain management and logistics.

Wal-Mart turns over their inventory on a weekly basis.


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RFID SYSTEM

104 Wal-Mart stores and 36 Sam's Clubs, the companyhas installed RFID readers at the receiving docks at theback of the building, near the trash compactors andbetween the back room and the retail floor.

For the cases of goods that are shipped to the storeswith RFID tags, Wal-Mart records their arrival by readingthe tag on each case and then reads the tags againbefore the cases are brought out to the sales floor.

By using sales data from its existing point-of-salessystem, which is not using RFID, Wal-Mart subtracts thenumber of cases of a particular item that are sold tocustomers from the number of cases brought out to the

sales floor.


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CONTu.

When a case is brought out to the sales floor, thesystem records that it's being put out on theshelves.

When the case is read at the trash compactor, thestatus within the system is changed to "on shelf."

Suppliers can get updates on the location of theirgoods within 30 minutes of the goods movementfrom one part of the store to another with a 98%read rate.


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WAL-MART'S SUPPLY CHAIN MANAGEMENT TECHNIQUE -

RETAIL LINK

Wal-Mart uses Retail Link to provide vendors with theinformation needed to forecast demand for theirproducts

To accurately forecast, Use Retail Link to view thehistorical sales of your product.

Insufficient work without the information provided

from Retail Link,.


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Wall -Marts Retail Link extranet, it has begun tointegrate RFID process, radio frequency identification

data, to the original 7 Wal-Mart stores in Texas.

This technology gives an accurate reading on what itemshave been replenished, therefore not relying on peopleto record the information.

By using this technology it will reduce out-of-stocks byproviding the location of goods with RFID tags.

It helps the retailer by sharing its data with the suppliersautomatically notifying when

items are on the shelves.


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WAL-MART SUPPLY CHAIN

Using the RFID tags, shipments are automaticallyentered into their system, and each department hasa handheld "Telxon" .

Every tag on the shelves is scanned to get on-hands,and when an item is purchased at the register, it isautomatically taken out of their system.


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WAL-MART INTERNATIONAL


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COMPETITIVE ADVANTAGE FROM

INFORMATION TECHNOLOGY

Point-of-sale system : A computerized system that identifies

each item sold, finds its price in a computerized database,

creates an accurate sales receipt for the customer, and storesthis item-by-item sales information for use in analyzing sales

and reordering inventory. Aside from handling information

efficiently, effective use of this information helps Wal-Mart

avoid overstocking by learning what merchandise is selling

slowly. Over 5 year period, Wal-Mart invested over $600 million in

information systems.


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Telecommunications : Wal-Mart use telecommunications to linkdirectly from its stores to its central computer system and from

that system to its supplier's computers.

This allows automatic reordering and better coordination.

Knowing exactly what is selling well and coordinating closely

with suppliers permits Wal-Mart to tie up less money in

inventory than many of their competitors.

At its computerized warehouses, many goods arrive and

leave without ever sitting on a shelf. Only 10% of the floor

space in Wal-Mart stores is used as an inventory area,compared to the 25% average for the industry.


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BAR CODE SCANNNG

The idea of bar code scanning required that industry develop a

universal product code (UPC) system, a standard method for

identifying products with numbers and coding those numbers

as the type of bar code shown in the photo.

The use of bar code scanners made it unnecessary to stamp

the price on every item (except in states that still require this

for consumer protection). This reduced costs but also

eliminated jobs of some of the clerks who formerly did the

stamping.


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CROSS DOCKING

Wal-Mart has invested heavily in its unique cross-docking

inventory system. Cross docking has enabled Wal-Mart to

achieve economies of scale, which reduces its costs of sales.

With this system, goods are continuously delivered to stores

within 48 hours and often without having to inventory them.

The system reduced the handling and storage of finished

goods, virtually eliminating the role of the distribution centers

and stores.

The manufacturer directly forwarded the goods to a place

called the staging area.


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The goods are packed here according to the orders received

from different stores and then directly sent to the respective

customers.

Lower prices also eliminate the expense of frequent sales

promotions and sales are more predictable.

Cross docking gives the individual managers more control at

the store level.


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HUB & SPOKE SYSTEM

In the early 1970s, Wal-Mart became one of the first

retailing companies in the world to centralize its

distribution system, pioneering the retail hub-and-

spoke system.

Under the system, goods were centrally ordered,

assembled at a massive warehouse, known as

distribution center (hub), from where they were

dispatched to the individual stores (spoke).


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CONT..

The hub and spoke system enabled Wal-Mart 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.


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MAGIC WANDS..

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 backupmerchandise in stock at the distributioncenters.


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CONCLUSION

Wal-Mart is one of the leading retail chain in

the world and is spread in many countries.

The main reason for their success is theeffective utilization of latest technological

devices and systems for managing the

inventory and supply chain management.


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Documents

Group 14- Remya MIS