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8/8/2019 What is Supply Chain Management 2
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Supply Chain Management
Wal Mart&
Future Group
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` What is supply chain management` Advantages & objectives of SCM` Models of supply chain management`
Retail scenario` Difference between India and abroad
Technology Advancements Operation, procedures Logistics & Inventory Data
Distribution & Partner Network Resources & Trained People
` Case study
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` Supply Chain Management (SCM) is themanagement of a portfolio of assets (human,equipment, components, etc.) and relationships
(customers, suppliers, staff, etc.) to transform acustomers product from raw material to finishedproduct as efficiently as possible.
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ServiceKnowledgeClimate Price
Quality
Style & FashionIntensity
Assortment
Si eocation
ayout & esign
Place
Information
Product
PeopleValue
Pentagon is Customer Centricand Customer Facing.
The Retailer can impact the Customers perceptions by leveraging
the above elements.
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` The Triangle isorganization centric
` Integration between
and across theenterprise and industry
` A strong anddifferentiating triangle
would result in betterservice offering tocustomer.
Systems
Logistics Partners
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Partners Objectives
Organization Objectives
Customers Objectives
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Customer Objectives
Customer always gets the merchandise of his / her size and choiceMerchandise is always presentable and ready before customer entry
Timely replenishment of fast moving merchandise
Partner ObjectivesPartner ObjectivesPartners always deliver the right quantities as per schedulePartners always deliver the right quantities as per schedule
Sharing of information with partners related to sales stocks and purchase ordersSharing of information with partners related to sales stocks and purchase orders
Organization ObjectivesOrganization ObjectivesCustomer Response TimeCustomer Response Time
Merchandise AvailabilityMerchandise Availability
Distribution CostDistribution Cost
ShrinkageShrinkage
Collaboration with PartnersCollaboration with Partners
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` Anss
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` TYPE - Public (NYSE)
` FOUNDER - SamWalton
` FOUNDED- Rogers,Arkansas(1962)
` HEADQUARTERS Bentonville , Arkansas
` CEO - H. Lee Scott` CHAIRMAN- S. Robson
Walt
` OPERATIONS -16Countries
` PRODUCTS - Supercentres,neighborhood
` Market Cap.- US$ 228 Bn.
(2007)
` SALES-$374.5 billion(2008)
`
EMPLOYEES-
2.1 Million
` AREA SERVED Worldwide
` INDUSTRY Retail
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` Retail Units
Worldwide 7,390
` US Retail Units 4,219
Wal-Mart Stores 920Supercenters 2,565
Sams Clubs 593Neighborhood Market141
` International Retail
Units 3,171
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Partner 1
Partner 2
Partner 3
Partner 4Bangalore DC
Kolkata DC
Delhi DC
Mumbai DC Store
Store
Store
Store
Store
Store
Store
Store
B2B
WMS DSS/MMS
Reverse
Logistic
s
Western
Region
Northern
Region
Eastern
Region
Southern
Region
Operations
Outsource
d
Outbound
Logistics
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Point-of-sale
systemcaptures datain real-time
Data is
transmitted towarehouses
for Inv. Mgmt.
Retail Link
transmitsdata to
supplier
Orders are
generated fromprevious-day
sales
Merchandise is
loaded ontotrucks using
cross-docking
Merchandiseis delivered to
the store
Merchandise is
manufacturedbased on historical
and real-time data
Merchandiseis shipped to
warehouses
Customermade a
purchase
The store will re-stock the shelves
with merchandise
Wal-Marts merchandise replenishment cycle is no more than 48hrs
Fleet of 7,000 trucks in US
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` world class supply chain.
` cut cost by eliminating unneeded steps
` supply chain is so high tech that it can notify
Wal-Marts suppliers directly` efficiently and effectively re-supply their
3,500+ stores in a quarter
` utilize Electronic Data Interchange technology
to shorten the distribution cycle` RFID to automate tasks.
` low cost mode of operation
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` Using IT in Supply Chain ManagementWal-Mart employed the most advanced IT tools and
applications in all supply chain functions, startingfrom demand forecasting, procurement, logistics,distribution and inventory management. The
company focused on bringing efficiency to everyfunction of the supply chain so as to offer itscustomers products at the lowest possible prices.
` Using The Internet In Supply Chain ManagementWal-Mart is integrating its supply chains with
major customers. Wal-Mart is an innovator inSCM, which has helped it to provide low-costmerchandise to its customers and undercut itscompetitors
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Wal-Mart tr atand rati ns
str t r
Enabl v r day l w ri andab v av rage r fitabilityby r ring , distrib ti nandselling r ducts, whenandwhereneededat l wercost thananycom etitor
erationsstrategy
Short response times Low inventory level
perationstructure
Fast transportationsystem
Crossdocking Retail link between wal-mart andsuppliers
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The Strategy of 3 Pl strategy and the remix one
Is the most successful
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