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WAL-MART SUPPLY CHAIN MANAGEMENT PRACTICES USING IT
Presented By:-Alex J.Panampunna(08BSHYD0052)B.Prasanthi(08BSHYD0190)Krishna Amritha Sheshadri(08BSHYD0355)P.Kiranmayi(08BSHYD0601)Ramakrishna.K(08BSHYD0639)
SAMUEL MOORE WALTON
March 29,1918 – April 5,1992
“Save Money – Live Better”.
Opened a variety store , a franchise of Ben Franklin.
First Walmart store ,was founded on July 2nd,1962 in Rogers,Arkansas.
Incorporated on October 31st , 1969 as Walmart Stores.Inc
Featured in Fortune 500 companies.
Worth $100.556 billion
FEATURES OF WALMARTDiscounted prices
Self – Service
Membership
ACQUISITIONSMexicoCanadaGermanyBrazilSouth KoreaGermany
CifraWoolco storesWertkaufLojas AmericansKorea MakroInterspar
MANAGING THE SUPPLY - CHAINProcurement
DistributionHub and Spoke Model“Cross – Docking”
EVENTS:-1970’s -> Bar codes , Electronic Data
Interchange(EDI)1977 -> Communication Terminal Network1978 -> First Fully Automated Distribution
Center1983 -> Point – of – Sales(POS),Introduced
electronic purchase order system.
1987 -> Introduced Satellite Communication System
1990’s -> Internet enabled technologies
BENEFITS OF IT IN SCMReduced supply-chain costs.
Accurate forecasting of inventory levels.
Increased efficiency.
Accurate distribution of goods.
IT IN SUPPLY CHAIN MANAGEMENT SYSTEM
Procurement and Distribution
Bar Code Technology
Hand-held Systems
LOGISTICS MANAGEMENT
Cross – Docking System
Inventory Management
Satellite Communication SystemAutomated Re-Ordering SystemMagic WandPoint of Sales System (POS)Algorithm SystemCentralized Inventory Data System
Further IT Tools in SCM
VOF (Voice based Order Filling ) System
Mobile Systems
Global Positioning System
Retail Link System
Extranet
Wal-Mart's Network
Wal-Mart's Network
Suppliers Suppliers
Advantages of RLSFor Wal-Mart
What Goods to Order
In what quantity
To which stores
Advantages of RLSFor Suppliers
Plan production schedules.
Plan Delivery schedules.
Price / Product modifications
CPFR Information System
Collaborative Planning
Forecasting
Replenishment
Implementation of CPFRPilot project
I Stage
With Lambert
II Stage
With Sara Lee and P&G
RECENT SUPPLY CHAIN INITIATIVESFurther up gradations in the Retail Link
System
Launched global sourcing initiatives
Developed a single request-for-quote (RFQ)
Entered into deals online
Standard methodology for global sourcing
VAN EDI vs. WEB EDIVAN EDI WEB EDI
Transactions through private VAN’s
Time consuming process
Transaction costs are high
Transactions are not totally secure
Transactions through internet
Direct online communication
Costs are comparatively low
Security is relatively high
RADIO FREQUENCY IDENTIFICATION
Definition of RFID
What is an RFID tag?
The process of RFID
How does WALMART use the RFID technology?
RFID Based Technologies Achievements
Process of RFID
What the analysts say…
Heavy burden on its suppliers
Suppliers will incur an estimate of $20 million.
Revamp their packaging lines and warehouses
What Wal-Mart says…
Despite the concerns… Wal-Mart strongly supported RFID
To ignore it, is to ignore efficient change
Its going to cost us, but there is a great value!!!
QUERIES ???