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Transcript of walmark supply chain
LOGO
Wal-Mart supply chainwww.walmartstores.com
Professor: 何正得
Students : 楊氏良, 范氏紅, 阮德盛
Background Industry: Retailing Founded: 1962 Founder: Sam Walton Headquarter: Bentonville,
Arkansas, United StatesNumber of locations:
8,970 (2011) Area served: Worldwide Key people: S. Robson
Walton(Chairman)Mike Duke(President and CEO)
Background
Revenue: US$ 421.849 billion (2011) Operating income: US$ 25.542 billion
(2011)Net income: US$ 15.355 billion (2011) Total assets: US$ 180.663 billion (2011) Total equity: US$ 68.542 billion (2011 Employees: Approx. 2.1 million (2011) Top U.S. Retail Industry Corporations on the
2011 Fortune 500 ranks Wal-Mart: - 2010 Rank - 1 - 2009 Rank - 2 - 2008 Rank - 1
Mission
Wal-Mart's advertised mission statement and its advertising slogan are the same:
"We save people money so they can live better."
In addition to this mission statement, the company looks to its founder, Sam Walton for a company "purpose":
“If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.”
Supply chain overview
www.themegallery.comwww.themegallery.com Company LogoCompany Logo
Competitive and supply chain strategies
Wal-Mart’s competitive strategy is to be
reliable, low-cost retailer for a wide
variety of mass-consumption goods
Supply chain emphasize efficiency but
also maintain an adequate level of
responsiveness in term of product
availability.
SuppliersWal-Mart works hard to ensure that the
products on their shelves meet the uniqueneeds
Wal-Mart partners with thousands ofsuppliers in every merchandise category
Maintaining a diverse mix is the key to theirsuccess.
Wal-Mart outlines the steps a businessowner must take in order to become itssupplier
Providing supplier training program: Wal-Mart has begun a new Web-based trainingprogram for Chinese factories thatmanufacture products for its stores.
Suppliers
Wal-Mart provides some standards for their suppliers: Compliance with Laws Voluntary Labor Hiring and Employment Practices Compensation Freedom of Association and Collective bargaining Health and Safety Environment Gifts and Entertainment Conflicts of Interest Anti-Corruption Financial Integrity
Distribution Center
Having one of the largest private distribution
operations in the world.
Having more than 40 Regional Distribution Centers Wal-Mart was able to provide replenishment within 2
days against at least 5 days for competitor. The inventory turnover rate was very high, about
once every two weeks for most of the items They operate 24/7
There are also distribution centers for specific
product categories such as grocery, jewelry,
pharmacy, apparel/shoes
Distribution Center
Each DC’s size : 1 million square feet.
It was divided into different sections on the
basis of the quantity goods received
Inside each DC, more than five miles of
conveyor belts move over 9,000 different lines
of merchandise
Each DC supports between 75 and 100 stores
within a 250-mile radius Each DC had facilities for maintaining personal
hygiene such as shower bath and fitness center.
Distribution Center
Inventory management
Wal-Mart maintains an efficient supply chain by
keeping low levels of inventory
Wal-Mart pioneered cross-docking
They run an EOQ(Economic order quantity) system
where their demand rates are continuous, frequent,
and known
Wal-Mart manages an efficient JIT system
The Wal-Mart EPC(electronic product code) initiative,
launched in 2005, uses RFID solutions to track items
from manufacturer to distribution centers to its
stores.
Inventory management: RFID RFID is used to improve
product availability forWal-Mart customers.
Cases and pallets containingthe products will feature EPCswhen delivered to Wal-Mart’s regionaldistribution center.
RFID readers installed at dock doors willautomatically let Wal-Mart’s operations andmerchandising teams as well as suppliers knowthis exact shipment of products has arrived andis inside the building
Cases will then be removed from pallets andprocessed as usual through the distributioncenter.
Transportation
A Slow Boat from China Delivers Cars Toys to the U.S.
Trains transport the Containers to the Distribution Centers
Trucks also haul the Containers to Distribution Centers
Transportation
The retailer aims to take over U.S. transportationservices from suppliers in an effort to reduce the costof hauling goods
Wal-Mart will increase its use of contractors, as wellas its own vehicles, to pick up products directly frommanufacturers’ facilities.
Wal-Mart’s initiative to take over transportation fromits suppliers to its distribution centers and stores:Wal-Mart has a very large private fleet (6,500tractors and 55,000 trailers)
Wal-Mart supports one of the largest trucking fleetsin the United States with over 6650 trucks, 5400 dryvans, 3900 reefers and logs over 757 million milesannually
Transportation
Fleet Statistics
7,400 Drivers
6,537 Tractors
51,882 Dry Van Trailers
5,001Reefer Trailers
80,000 Associates in Logistics
124 Distribution Centers
713 Million Miles Driven in 2010
4 Million Total Store Deliveries Per Year
1.6 Million Miles Per Preventable Accident
Wal-Mart stores
Wal-Mart Stores serves customers and
members more than 200 million times per
week at more than 9,800 retail units under
69 different banners in 28 countries.
Wal-Mart builds retail stores only where the
demand is sufficient to justify having
several of supported by DC
Wal-Mart stores in US
Description Retail Units Entry
Supercenter 3,002Opened first in 1988 (Washington, MO)
Discount Store 647Opened first in 1962 (Rogers, AR)
Supermarkets* 192Opened first in 1998 (Bentonville, AR)
Small formats** 9Walmart U.S. 3,850
Sam's Club 610Opened first in 1983 (Midwest City, OK)
Total U.S. 4,460
Wal-Mart stores in US
www.themegallery.comwww.themegallery.com Company LogoCompany Logo
Wal-Mart stores in other countries
Mexico 1,932 Entered November 1991Canada 329 Entered November 1994Brazil 496 Entered May 1995Argentina 67 Entered August 1995China*** 352 Entered August 1996United Kingdom 542 Entered July 1999Japan 415 Entered March 2002Costa Rica 194 Entered September 2005El Salvador 77 Entered September 2005Guatemala 188 Entered September 2005Honduras 62 Entered September 2005Nicaragua 67 Entered September 2005Chile 299 Entered January 2009India 9 Entered May 2009Africa**** 337 Entered June 2011 Walmart International 5,366Wal-Mart Stores, Inc. 9,826
Where in the World is Wal-Mart?
www.themegallery.comwww.themegallery.com Company LogoCompany Logo
Supply chain issues
The company was tired to apply the same
standards it used in The United States with
local suppliers
Some local suppliers either refused to give
special discount or to sell products to Wal-
Mart
Some producers rejected delivery system;
they refused to send goods to Wal-Mart
distribution center
Conclusion
Wal-Mart 2011 annual report :
Every week around the world, Wal-
Mart’s 2.1 million associates work
diligently to help more than 200
million customers save money so they
can live better
Thank you very much!