SCM of wallmart

8/7/2019 SCM of wallmart

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ASTUDY ON

WALL-MART SUPPLY CHAIN

MANAGEMENT STRATEGIES


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Submitted by

Smruti Sikha Behera,10DR023

Megha Sehgal,10dr019

Diptikanta Parida,10dr025


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SUPPLY CHAIN MANAGMENT

Supply chain management can be defined as an oversight of materials, information andfinances as they move in a process fromsupplier to manufacturer to wholesaler toretailer and finally to the consumer. The basicaim of supply chain managements

coordinating and integrating the flow whichtakes place within and among companies.


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The basic three types of supply chainmanagement flows are:

i. The product flowii. The information flowiii. The finances flow

The product flow deals with the goods and servicesthat are subjected to movement from a supplier to acustomer and vice-versa.The information flow manages the upgrading as well

as management relating to the status of the deliveryprocess.The financial flow manages allthe finances related to the delivery process.


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INTRODUCTION:

The worlds largest retailer Wal-Mart was founded bySam Walton in the year 1962Presently they are operating in fifteen

countries with more than 8,000 stores with 2.1 millionemployees (Wal-Mart, 2010).Major features of Wal-Mart stores are its store area,cleanliness and its shelves which is filled with varietiesof qualityWal-Mart is giving more emphasis for customer needsand tried to reduce cost through theeffective usage of supply chain management system


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MANAGING THE SUPPLY CHAIN

procurement and distribution

Inventory management

logistics management


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PROCUREMENT

It always emphasized the need to reduce itspurchasing costs .procured goods directly from manufacturers,bypassing all intermediaries.tough negotiator on prices- the productsbeing bought were not available elsewhere at

a lower price.Wal-Mart was able to provide replenishmentswithin one day.


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DISTRIBUTION

Wal-Mart has around 120 distributioncenters around US.Goods meant for distribution withinthe country arrived in pallets, whileimported goods arrived in re-usableboxes or cases.Some suppliers delivered goodsdirectly to the stores.85% of the goods which wereavailable at the stores passed throughthe distribution centers.Different barcodes are used to labeldifferent products, shelves and bins ina center.


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INVENTORY MANAGEMENT

Wall mart used in IT and communications systems toeffectively track sales and merchandise inventories instores.Wal-Mart has its own satellite communication system

Had collaboration with P&G for maintaining the inventoryin its storesbuilt an automated re-ordering system, which linked allcomputers between P&G and its stores and other DC s.The computer system at Wal-Mart stores identified an itemwhich was low in stock and sent a signal to P&G.The system then sent a re-supply order to the nearest P&Gfactory through the satellite communication system


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LOGISTICS MANAGEMENT:

The distribution centers are serviced by morethan 3,500 company owned trucks.These dedicated truck fleets shipped goods fromDC s to the stores within two days and replenishthe store shelves twice a week.Coordinators give information to the driver as towhat is the expected time of arrival or delivery of the goodsThere was a gap of two hours between unloadingof each trailer.


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Wal-Mart: A Leader in Logistics

key driver in Wal-Mart's successtechnology, innovation and the commitment of our associates.Wal-Mart Logistics has approximately:85,000 associates... 147 distribution centres... 51 transportation offices... 7,200 tractors... 53,000 trailers7,950 drivers


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BENEFITS REAPED

Company efforts on capitalizing every costsaving opportunities .

Adding value.Benefits of low transportation cost.

Faster replenishment of goods.

Enjoyed more bargaining powerCondition of stock out good was eliminated


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CONCLUSION

Wal-Mart's vision had always been to increasesales through lowering the costs throughorganized distribution system with the help of the Information Technology.Wal-Mart's focus has always been to sellgoods at a lower price to the customers.

Wal-Mart with its power distribution systemmade quite innovative changes like reducingpaper work, reduced its lead time drastically.


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SCM of wallmart