Wal-Marts Supply Chain Management

Wal-Marts Supply Chain Management Members

Akshay Chauhan DM16204Avani Sahu DM16210Mobashshir DM16230Shivam Shukla DM16244Sweta Ramdas DM 16249Presentation coverageSome Walmart FactsGlobal PresenceSupply Chain Management at WalmartWalmart Supply Chain Flow ChartSupply Chain elements at WalmartWalmart P&G channel partnershipSCM enabled partnership in IndiaSupply Chain Management at Big BazarInwarding Process at WarehouseOutwarding Process at WarehouseUnique Features in Big Bazar

Some Walmart FactsWalmart averages a profit of $1.8 million every hour.

35 million people shop at Walmart every day, as much as the population of Canada.

The Walton family is worth $150 billion.

Walmarts top selling item in 2012 was the Banana.

90% of Americans live within 15 minutes of a Walmart.

Global Presence

It has over 11,000 stores in 27 countries, under a total 55 different banners. The company operates under the Walmart name in the US and Puerto Rico. It operates in Mexico as Walmart de Mxico y Centroamrica, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada.Source - http://en.wikipedia.org/wiki/WalmartSupply Chain Management at WalmartFewer Links in Supply ChainVendor Managed Inventory (VMI) Strategic Vendor PartnershipsCross Docking as inventory Tactic Technology Universal Product Code bar codesRetail Link Information sharing with PartnersCPFR

Source - http://blog.tradegecko.com/incredibly-successful-supply-chain-management-walmart/

Walmart Supply Chain Flow ChartManufacturerManufacturerManufacturerRetail StoreRetail StoreRetail StorePoint of sale terminalSatellite systemBar code, RFIDRadio, headphone

Distribution center

Company Headquarter

Supply Chain elements at Walmart

Some of the ways supply chain is managed at Walmart-Minitrucks - Inside distribution centers equipped with headphone Computer give direction to driver in voice.Bar Code System - Pallets passed through conveyor belt are scanned automatically and product codes are transferred to centralized computer systemRFID and Smart Tags- Use radio waves to identify objects, tags with microchip and antenna built inLarge Scale Satellite system - Link all of the stores to headquarter, giving Wal-Marts central computer system real-time inventory data.

ContinuedSource - http://www.rfidjournal.com/Information Sharing - Open its databases, Retail Link private extranet system : to see exactly how its products are selling and when it might need to up its production to give more than 2000 suppliers computer access to point-of-sale data.Walmart Advanced Vehicle Experience Concept Truck It is the latest in fleet efficiency program. The one-of-a-kind prototype offers a whole package of firsts.The trailer is made almost exclusively with carbon fibre, saving around 4,000 pounds, which can then be used to carry more freight.Here is a small video for the same

Source - http://news.walmart.com/news-archive/2014/03/26/walmart-debuts-futuristic-truck

Walmart P&G channel partnershipInitial Drawbacks-Adversarial Relationship - Wal-Mart did not like doing business with P&G as they were too complicated and inflexible.Transactional focus - P&G were obsessed by day by day selling, in which success was that you got the order today and failure was that you did not.Main Objective Only to push sales, irrespective of what the customer needed, or was rewarded for. No testing or long term planning.

ContinuedSource - http://citebm.business.illinois.edu/IT_cases/Graen-Shaw-PG.pdf

Fragmented processes - Relationship and activities were managed by the buying and selling function only.

An example of how that manufacturers and retailers integrate into the supply chain as partners and build benefits for each other by reducing costs and improving service.P&G installed the IT system Electronic Data Interchange (EDI), recommended by Wal-Mart.

Management - Post Deal

Allowed Wal-Mart to get and share data, reducing the costs and making higher profits.Used the CRP to reduce the reorder cycle time.Using these systems, P&G replenishes Walmarts inventory.This assists P&G in managing its inventory levels and ensures that P&G products are in stock in Wal-Mart at all times.

Inventory Levels with and without Information SharingSCM enabled partnership in India

Source - http://articles.economictimes.indiatimes.com/2011-08-22/news/29915200_1_devendra-chawla-big-bazaar-future-groupSupply Chain Management at Big BazarBigBazar has partnership with many vendors out of which Unilever is one of the biggest.Procurement at big bazar happens fromCentral Distribution Centre (CDC).Local Vendors The stock in the store is managed by Automated Replenishment System(ARS).The CDC are located in such a strategically positioned so that it can easily caters to the nearby Big Bazar.

Inwarding Process at Warehouse

PO generated by the ARSReceived by the vendorVendor delivers the GoodsIRN is issued by the warehouse management teamStock Tally. If stock tally fails then discrepancy note is generatedGRN is issuedStock is either piled in the warehouse or sent to the floor for sale

Outwarding Process at Warehouse

PO generated from stores to CDCRaising of PO to the vendor by the CDCDelivery of the stock to the CDCReceiving of the stocks after weighing, counting and generation of IRNInformation is transferred to SAPGeneration of GRNStock piled stored in the warehouse of CDCOutwarding of material from CDCReceiving of goods at the Big Bazaar store

Unique Features in Big BazarSambandh Program - Sambandhprogram aims to foster an environment combining our strengths to create immense value for our supplier partners and in turn, nurture mutual growth.There are three main aspects of theSambandhprogram:Collaborating in business planning and management to ensure optimal growthLeveraging Future Group resources and making life easier for youPutting our strengths together to create a unique position in the marketplaceContinued

Source - http://www.futuregroup.in/suppliers/suppliers-distributors.htmlSuccess Story - Netway began manufacturing homecare products like toilet cleaners, glass cleaners, utensil cleaners and hand-wash at its plant under Future Groups guidance with respect to quality and other product specifications. With this association, Netways turnover saw exponential growth in just three years. Netway is now growing at a brisk pace of 50% in sync with Future Groups growth.

Source - http://www.irnet.sg/irnet_journal/IJMPE/IJMPE_doc/VOL2ISS1_doc/paper21.pdf