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Information Systems in

Wal-mart Stores, Inc.

Information Systems for Management
Voluntary Discussion Topic
14th Jul 2008

Presented by:
Anurag Kalita
Division D
Roll No. 331
Retail Industry

Retailing Formats –

• Mom-and-Pop Stores • Catalog Retailers
• Mass Discounters
• E-tailers
• Warehouse Stores
• Franchise
• Convenience Store
• Category Killers
• Vending
• Departmental Stores
• Boutiques

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Information Systems for Management
Top Ten US Retailers

Retailers Annual Sales
Wal-Mart $ 288.2
Home Depot $ 73.1
Kroger $ 56.4
Costco $ 47.1
Target $ 46.8
Albertsons $ 39.9
Walgreens $ 37.5
Lowe's $ 36.5
Sears $ 36.1
Safeway $ 35.8
* Sales are in billion US dollars
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Information Systems for Management
History of Wal-mart
• Founded by Sam Walton with first store at Rogers, Ark in 1962.
• Got Incorporated as ‘Wal-Mart Stores, Inc’ in year 1969.
• Opened first distribution center and home office in 1970.
• Listed on NYSE in year 1972, listing name ‘WMT’.
• First 100% stock split in 1971, second in 1972 and third in 1975.
• First acquisition in year 1977 (16 Mohr-Value Stores).

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Information Systems for Management
History of Wal-mart (contd.)
• First Sam’s Club at Midwest City, Oklahoma in 1983 .
• First Super-center opened at Washington, Missouri in 1988 .
• Becomes US #1 retailer in 1990.
• Goes international by acquiring 122 Woolco stores in 1994.
• Became world’s largest private employer in 2007.

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Information Systems for Management
Wal-Mart Figures
• Market Capitalization: US $ 228 billion*
• Revenue: US $ 387 billion*
• Operating Income: US $ 22 billion*
• Net Income: US $ 12.7 billion*
• Total Assets: US $ 163.54 billion*
• Total Equity: US $ 64.6 billion*
• Employees: More than 2,100,000+

* - as of 2007
+
- as of 2008

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Information Systems for Management
Technology Innovations

Introduced POS system in 80s:

A Computerized system for item identification, price determination, sales
receipt and sales data maintenance.

Benefits:
• Handles data efficiently
• Avoids overstocking
• Better inventory management

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Information Systems for Management
Technology Innovations (contd.)

Centralized Communications in 90s:

• $600 million telecommunications link
• First stage - Stores to Central computer system
• Second stage - Central computer system to supplier’s

Benefits:
• Direct reordering and coordination
• Lesser money in inventory
• Lower manufacturing costs

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Information Systems for Management
Technology Innovations (contd.)

Bar Code History & RFID

• Bar Code came into being in 70s
• Development of Universal Product Code (UPC)
• RFID – radio frequency identification devices
• Incoming shipments with RFID tags

Benefits:
• One stop information
• Control on physical movement
• Lesser time to find

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Information Systems for Management
Technology Innovations (contd.)

UCCnet
• Non profit subsidiary of Uniform Code Council (UCC)
• Provides data registry service for SCM
• Collaboration between suppliers and marketers
• Came into being to counter lack of data synchronization
• Suppliers need to be UCCnet compliant

Benefits
• Product details made available electronically
• Reduces product data-entry time

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Information Systems for Management
Thank You

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Information Systems for Management