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ACKNOWLEDGEMENT
“I don’t believe there is a university in the world that doesn’t talk about Wal-Mart and the supply chain” James Crowell, Director of the SCM Research Center at the Walton
Source: Wal-Mart Used Technology to Become Supply Chain Leader, Todd Traub on Monday, Jul. 2, College of Business
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THE SUPPLY CHAIN LEADER
By Dayanzi TamangMBA II Semester (Fall), Kantipur Valley College, Kumaripati, Nepal
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CONTENTS
Why know about Wal-Mart?
Introduction
Timeline of Wal-Mart’s SCM development trend
Incredible growth!
Some Supply Chain Strategies
Benefits of Efficient Supply Chain Management
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WHY KNOW ABOUT WAL-MART?
World's largest public corporation (Fortune
Global 500 list 2014)
Biggest private employer in the world (with over two million employees), and
Largest retailer in the world
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INTRODUCTION
American multinational retail corporation
Founded by Sam Walton in 1962
Over 11,000 stores in 27 countries, under 55 different names
Believed to have one of the most efficient supply chain
SJ_ WALMART CASE SUPPLY CHAIN.mp4
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TIMELINE OF WAL-MART’S SUPPLY CHAIN DEVELOPMENT TRENDS
1970: opened its first distribution center (DC)
1975: leased IBM computer system to maintain inventory control - first retailer to tie store and DC together
1992: deployed Retail Link system (It provides vendors information on sale trends, inventory levels and more)
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TIMELINE CONTD.
2000: Lee Scott, who started Wal-mart career as a dispatcher becomes CEO -sends message about importance of logistics to it’s success.
2004: announces RFID for top 100 suppliers (displays real-time sales data from cash registers and to Wal-Mart’s distribution centers)
2010: announces a sweeping plan to reduce the use of intermediaries in its global sourcing processes
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INCREDIBLE GROWTH!!
1993: $1 billion in business a week
2001: $1 billion in business every 36 hours
Growth that was attributed much to Supply Chain Management
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SOME SUPPLY CHAIN STRATEGIES
Procurement
Made trips to buying offices in New York
Suppliers maintained offices close to it
Source products globally
Enormous power on supplier
Dictated suppliers
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SOME SUPPLY CHAIN STRATEGIES CONTD.
Distribution
Significant investment for firm
Low rent, suburban areas close to major highway
6,600 trucks and 55,000 trailers
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SOME SUPPLY CHAIN STRATEGIES CONTD.
Cross-docked perishable items
Trucks backhauled
Non-unionized and in-house trucking employees
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SOME SUPPLY CHAIN STRATEGIES CONTD.
Store Network
Display of store-wide merchandise templates
Associates free to alter templates
Simply furnished, used standardized materials
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SOME SUPPLY CHAIN STRATEGIES CONTD.
Information System
Interested in gathering and analyzing information
1996: attended IBM school to hire smartest person to computerize operations
1980s: invested in central database, store level point-of-sale system and a satellite system
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SOME SUPPLY CHAIN STRATEGIES CONTD.
1990s: developed Retail Link, 2.5 petabytes in 2008 (second to Ebay 4), real time sales data
Vendor Managed Inventories
Radio-frequency Identification: saved US$ 500 Million a year using it
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SOME SUPPLY CHAIN STRATEGIES CONTD.
Human Resource
Motivation
Saturday morning meetings: 7 am, discuss changes implemented
Improved communication among divisions
Free from cumbersome labour agreements
Non-unionized labour
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BENEFITS OF EFFICIENT SCM
Sustainable Competitive Advantages:
lower product costs
reduced inventory carrying costs
improved in-store variety and selection, and
highly competitive pricing for the consumer
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