Supply Chain at Walmart

8/10/2019 Supply Chain at Walmart

http://slidepdf.com/reader/full/supply-chain-at-walmart 1/11

ATIN MEHRA

140103039



Reduce the level of growth of holding inventoryto half the value of sales growth

Retain competitive advantage over industry

competitors

Worked to reduce cost of operations by:◦ Lower Labor Cost

◦ Improved supply chain

◦ Better logistics

◦ Improved technology to increase efficiency◦ Better inventory management



• EDLP: Everyday low price

• Effective use of logistics management

• Effective inventory control

• Bargaining power over suppliers

• Global Expansion for new market opportunity



Better Stakeholder Relationships◦ Strengthening relationships with customers, suppliers and employees by

passing on the savings on cost to them and thereby adding value.

Benefits of own transportation system

◦ Low transportation costs (3% against competitors’ 5%) ◦ Faster delivery to stores (with in 48 hours) and faster replenishment than

competitors (4 times)

Benefits of pricing strategy◦ Low pricing with day-to-day variations coupled with higher discounts than

competitors

◦ Good bargaining power because of purchasing huge quantities

◦ Good revenues in terms of higher and consistent sales volumes



Lowerinventories

Higher

productivity

Greater agility

Greatercustomer

loyalty

Shorter leadtimes

Higher profits



Automated Data collection based on an electronics – not a barcode

Tag can be imbedded in the product or stuck on the exterior

case or pallet

Reader instead of a barcode scanner

Allows fully automated data collection with the use of portals

Can read many ID tags at a time



16% reduction in product stockout sinceadoption of RFID

RFID equipped shops are 63% more efficient

in replenishing out-of-stock items

Out-of-stock items are replenished 3 timesfaster with RFID

Cost of excess inventory was reduced bymore than 10%



RFID technology which was introduced and pioneered byWALMART is being used across Indian industries such as:

◦ Pantaloon has piloted an RFID project at one of its warehouses for fewapparel lines

◦ Used in supermarkets for tracking of goods and security from pilferage as

it lets out an alarm at the exit door if not billed properly

◦ Air India is planning to use RFID for tracking capital assets

◦ Leading oil companies have begun pilot tests to use RFID for LPG cylindertracking

◦ The Indian railways is also thinking on these lines for tracking wagons andcontainers

◦ Maruti Udyog Limited has been using RFIDs for component and spareparts tracking for some time now at their Gurgaon plant

Supply Chain at Walmart

Documents

Transcript of Supply Chain at Walmart