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Wal-Mart Logistics and Supply Chain Management Research and Analysis (a)

Release time2006.09.27 News sourcesRFID (China) information technolege Co., Ltd Views768

Wal-Mart Department Store Co., Ltd. (hereinafter referred to as "Wal-Mart") by the U.S. retail industry legend Sam - Mr. Walton in 1962, set up in Arkansas. After more than four decades of development, Wal-Mart has become the nation's largest private employer and the world's largest chain retailers. Wal-Mart is currently in ten countries around the world has opened more than 5000 stores, the total number of employees more than 160 million people in the United States, Mexico, Puerto Rico, Canada, Argentina, Brazil, China, South Korea, Germany and Britain 10 countries. Wal-Mart customers per week visit nearly 140,000,000 people. Wal-Mart's 2004 global sales of 285,200,000,000 U.S. dollars , For many years in a row crowned as the "Fortune" magazine, the world's top 500 enterprises and the "most respected enterprises" list. Wal-Mart's business has been able to grow rapidly and now has become well-known companies, Wal-Mart because of the cost savings as well as logistics and distribution systems and supply chain management has made tremendous achievements. Apple CEO Steve Jobs has said that if the global IT business only three, it has to be Microsoft, Intel and Dell, if there are only two, only to Dell and Wal-Mart. This is clearly only a joke, although Wal-Mart is a leader in the retail industry, but also in any case not enterprise IT. However, Wal-Mart on the pursuit of information technology is there for all to see, this is due, Wal-Mart's low-cost strategy can be tested.

First, to reduce the cost of family logistics distribution center in the method of application A little understanding of the Wal-Mart knows that low-cost strategy has always been to maintain low cost of logistics, such as Wal-Mart's lowcost goods specialty retailer of skills. In the course of logistics operations to reduce costs as much as possible, to save costs after the so beneficial to consumers, Wal-Mart has always been that this is the purpose of the operation. Wal-Mart in the entire logistics process, is the most expensive part of the transport, so in the new Wal-Mart stores, as far as possible with its existing distribution center as the starting point, stores are generally located in the surrounding distribution center, so as to shorten the delivery time , To reduce the cost of delivery. Wal-Mart's investment in logistics, but also very concentrated for the construction of logistics distribution center. 1, rapid and highly efficient logistics distribution center General to set up a logistics distribution center in more than 100 retail outlets located at the center, which is to set up distribution centers in the main sales market. This makes a distribution center in the vicinity to meet more than 100 sales outlets around the city's needs; other transport within a radius of only a comparatively short and relatively uniform, basically a shopping district 320 km to the establishment of a distribution center. Wal-Mart stores all the information on orders through the company's high-speed communications network delivered to the distribution center, distribution center consolidation after the formal order to the supplier. Suppliers can order the goods directly to stores, can also be sent to the distribution center. This was described as the Wal-Mart distribution centers: the average size of a giant construction of more than 110,000 square meters, equivalent to 24 football field; containing people can imagine the kinds of goods, from toothpaste to TV , From sanitary towels to toys, everything, the types of goods more than 80,000 kinds. Wal-Mart in the United States have more than 62 distribution centers, shopping services, with more than 4,000. In accordance with these centers around the deployment of well-regional trade, usually from any of the centers, day in the car can reach its service shops. In the distribution center, a computer in charge of all. Suppliers of goods will be sent to the distribution center, the first after checking procurement plans, such as commodity inspection procedures, were sent to different locations in the store shelf. When everything into merchandise store, the computer will be their position and the number of recorded one by one; once proposed to store goods scheme, the computer will find out the location of these goods store, print and store the code printed on the label, For the goods to put on. The whole package of goods will be sent directly to conveyor belt, scattered by the staff of the goods taken out after the conveyor belt will also be sent. Commodities in a few km-long conveyor belt, go through the identification of laser bar code above, and send them to the place to go, the conveyor belt on a day the output of goods up to 200,000 boxes. For the scattered goods, there are a number of belt lights, red, yellow, green, and employees may prompt the lights to determine the goods should be sent to stores to take these products and will take into account the goods Into a box, in order to avoid waste of space.

The distribution center is the end of the loading platform, for 130 trucks loaded at the same time, on the other side is a platform for

unloading, parking 135 trucks at the same time. Distribution center 24 hours non-stop operation, with an average daily loading and unloading of goods to receive more than 200 trucks. Wal-Mart as much as possible in a large truck transporting goods, may be about 16 containers of rice, container trucks still higher or longer. In the United States on the road can often see such a team, Wal-Mart trucks are their own, the driver is Wal-Mart workers, who are in the United States between the various state highway running, and each car Cubic meters have been filled to the brim, so that is very cost-effective help. Company trucks transport more than 6000 vehicles have been installed with satellite positioning systems, where in the vehicle, carrying what cargo, destination, is where the headquarters are at a glance. As a result, at any time, the dispatch center can know where these vehicles, far away from stores, they can also understand that a transport goods to where, how much time can be transported to stores. In response, WalMart to the exact hour. If employees know that the team due to weather, road, and so for one reason or another delayed arrival time, loading and unloading workers can no longer wait, and other work can be arranged. Flexible and efficient logistics and distribution makes Wal-Mart in the fierce competition in the retail Jigaoyichou. Wal-Mart can be assured of goods from distribution centers to the store any time not more than 48 hours, the Wal-Mart store shelf replenishment can be twice a week on average, and other stores with an average of two weeks in order to fill a cargo; through Maintain a minimum inventory, Wal-Mart not only save storage space and reduced inventory costs. Dr. Stone, an economist at the U.S. retail business study found that the three major U.S. retailers, logistics costs account for sales of goods, the ratio was 1.3 percent in the Wal-Mart, Kmart is in 8.75 percent, at the Hills is 5%. If you have annual sales of 25,000,000,000 U.S. dollars in accordance with the terms, Wal-Mart's logistics costs Kmart less than 1,862,500,000 U.S. dollars, the hills less than 425,000,000 U.S. dollars, the difference between its staggering. 2, Wal-Mart distribution center to adopt the practices The distribution center is at one end of the loading platform, is the other end of the discharge of the platforms of the two operations separately. Appears to be working together with the manner no different, but this improved operational efficiency. Distribution center is a large warehouse, but conceptually different from the warehouse.

Cross distribution CD (Cross Docking), cross-distribution practices are very unique and very high efficiency, when purchasing

Direct shipping loading, storage and warehousing is no sorting operations, reduce costs and speed up the flow. 800 employees working 24-hour shift handling distribution, Wal-Mart workers wages are not high since these workers are basically junior high and high school students, only after Wal-Mart special training. Commodity distribution centers in more than 48 hours non-stop, Wal-Mart's products are sold tens of thousands of varieties, food, clothing, shelter, and each side has. In particular, as food, fast-moving consumer goods remained time for these commodities have a direct impact on the use of. Wal-Mart how to improve the organizational structure of the distribution center? Each store every day to send Cihuo 1 (1 competitor every 5 days), at least one day could mean a reduction in delivery or retail store's inventory. This makes the retail space management and human costs are greatly reduced. To achieve this goal it is necessary to constantly improve the organizational structure, making the establishment of a mode of operation to meet this demand. In 1990, when the world's 14 distribution centers, developed to establish in 2001 a total of 70 distribution centers. Wal-Mart, the world's top 500 enterprises, up to now only operate in several countries, has seen it only in the development of regional operations, Wal-Mart is operating in a very cautious in such circumstances to the development of 70, Its logistics distribution center restructuring of the organization in place to do comparison. Distribution costs accounted for sales of 2%, 50% of the competitors is the (only 50% of the opponent and is focused on delivery of goods). Wal-Mart's distribution costs account for 2% of its sales, general and the logistics of the total cost of sales in general have reached about 10%, and even some of the food industry reached 20% or 30%. Wal-Mart has always been the same thinking of the best things is to use the lowest price to consumers, this is successful it is. Other competitors in general, only 50% of the centralized distribution of goods, and 90 percent of Wal-Mart is a few centralized distribution, and only a small number of processing plants can be sent directly to the store, which cost a lot of difference between the rivals on the .

Second, logistics, information technology application

Wal-Mart's success to a large extent because it is at least 10 years (than competitors) will be the most advanced technology and logistics systems with a clever. As early as the 20th century, 70 years, Wal-Mart started using computers to manage; 80 in the early 20th century, they spent 400,000,000 U.S. dollars to buy the satellite business, to achieve a global network; the 20th century, 90, used the world's leading satellite Positioning System (GPS), control of the company's logistics and improve distribution efficiency, speed and quality to win customer satisfaction and loyalty. Wal-Mart all the systems are based on a distribution system called UNIX, and use of conveyor belt and a huge open-platform, also used the product code, and automatic replenishment systems and laser-recognition system, all of which Wal-Mart for save Considerable cost. Wal-Mart has been advocating the use of the most modern, most advanced system for reasonable transport arrangements for the adoption of computer systems and distribution center, was the ultimate success. 1. The establishment of the first global logistics data processing center In the 1970s Wal-Mart set up a logistics management information system (MIS), responsible for the statements of the processing system to speed up the pace of the operation. In the early 1980's, Wal-Mart to cooperate with the Hughes satellite launch logistics, logistics, communications satellites makes Wal-Mart had a jump of development; in 1983 when the use of POS machines, full name of the Point Of Sale, is the only point of sale Data Systems. In 1985 the establishment of EDI, electronic data interchange system for paperless operations, all of the information in the full operation of the computer. In 1986 when it established a QR, known as rapid-response mechanism, the market demand for fast driving. Wal-Mart in the first group to achieve a 24-hour computer monitoring of the logistics network, so that the procurement of inventory, ordering, distribution and marketing integration. For example, Wal-Mart customers to store shopping, and then through POS machines to print the invoice, at the same time in charge of production planning, procurement plan, as well as suppliers of computer information will be displayed at the same time, various links will be completed in a timely manner through their Work, thereby reducing the unnecessary waste of time, to speed up the logistics of the cycle. 2. Wal-Mart's application of information technology, logistics RF / RF (Radio Frequency), in the course of day-to-day operation of the bar code can be combined with the application. Portable data terminal equipment / PDF, the traditional way to call after arrival, the E-mail or statements made by portable data terminals can query the case of goods. Bar code logistics / BC, the use of logistics bar code technology, timely and effective logistics business of collecting information to track. Radio frequency identification technology (RFID), a non-contact automatic identification technology, through its radio frequency signal automatic target recognition and access to relevant data, no need for human intervention to identify the work, in all kinds of bad environment. In 2004, the world's largest retailer Wal-Mart demands of its top 100 suppliers in January 2005 prior to its distribution center delivery made the box set and the use of Radio Frequency Identification (RFID) technology, in January 2006 In the former piece of goods in use. Experts predict that 2005 to 2007, Wal-Mart suppliers will use every year

5,000,000,000 RFID, Wal-Mart's annual savings of 8,350,000,000 U.S. dollars. At present, the world has been installed in about 5,000 bodies; mso-ascii-font-family: 'Times New Roman'; mso-hansi-font-family: 'Times New Roman' "> an RFID system, the actual annual sales of about 9.64 Million. With information technology, Wal-Mart strengthened, progress has been made.