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 ???