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PRESENTATION ON

CASE STUDY

WAL–MART’S SUPPLY CHAIN


MANAGEMENT PRACTICES
Presented By
Priyanka Bhardwaj
Lovisha Sharma
Anil Tiwari
Sandeep Yadav
SAM WALTON
COMPANY’S
FOUNDER
• World largest retailing company .

• Revenues of $219.81 million (2001-02) .

• Approx. 1,170 stores across the world.

• Employee strength approx. 1.28 million.

• Revenue of $378.799 million(2008).


WAL-MART has been able to achieve
respectable leadership in the retail
industry because of its focus on supply
chain management. Discuss in detail
the distribution & logistic system
adopted by Wal-Mart..
DISTRIBUTION SYSTEM
• Procured goods directly from manufacturers.

• Establish long –term relationship with vendors.

• Barcode Technology.

• Hand-Held computer system.


LOGISTICS MANAGEMENT

• Distribution centers were serviced by


more than 3500 company owned
trucks.
• Hired only experienced drivers.
• Drivers had to report their hours of
service to a coordinator daily.
• Private Fleet Driver Handbook.
• Cross- Docking
Information technologies benefit
in Inventory management
Contd…
•Centralized Inventory data system.

• Bar Coding & fixed optical reader for efficient


picking, receiving & proper inventory control &
for physical counting of inventory.

•Internet enabled technologies.


Information technologies benefit
in logistic management
Accelerated Delivery system


Various technologies made supply chain more convenient
Irrespective of geographical area
 Irrespective of geographical area

Cross –docking
• Make distribution process more efficient.
 Make distribution process more efficient.
Finished goods directly supplied to customers from manufacturing plant.

Reduces handling & storage of finished goods.

Eliminating the role of distribution centers &stores.

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• Q3- What were the supply chain
management process adopted by
Wal-Mart and how far were they
effective?Dicuss.
• 1- Procurement and Distribution.
– Procured Directly from manufacturers.
– Generally, preferred local and regional vendor and
suppliers.
– Use of barcode technology and hand held computer
system.
How it is effective?
– Low price to customers.
– Less cost effective.
– Help supervisor to monitor their employees closely.
– Help to satisfy customer need quickly.
2-Logistic Management
• Use more than 3,500 trucks for transportation.
• Hire only experienced driver.
• Transfer from supply chain to demand chain.
• Use five type of cross docking.
How it is effective?
• Goods picked directly from manufacturer.
• Reduce the handling and storage charges.
3-Inventory Management
• Use of IT and Communication system.
• Setup own satellite communication.
• Collaboration with P&G.
• Use of algorithm system and bar-coding
system.
• Tie-up with Atlas Commerce.
How it is effective?
• Help to communicate with stores.
• Help to reduce unproductive inventory.
• Help in Distribution of needed product.
• Help in accurate distribution of goods.
Q4: What was the nature of
benefits derived by Wal-mart
from the efficient supply
chain management practices
and how far it has
contributed to its sustainable
competitive advantage?
Explain.
Low transportation cost(3% as compared
to 5%)
Reduction in lead time (within 48 hours)
Wal-Mart can replenish the shelves four
times faster than its competitors
Purchase huge quantities→ Good
bargaining power (price variation)
→competitive price (higher discounts)
→benefit to consumers
Continue…..
• Accurate forecasting of inventory levels
• Increased warehouse space
• Reduction in safety stock
• Better working capital utilization
• Elimination of old stocks and maintained
quality of goods
Thank you