Prepared by:-

Submitted to:-

Prof. Dr. Islam El Nakib

The best example of synergization across a distribution network is Wal-Mart Stores Inc., the world’s largest retailer with
nearly 4,700 stores and annual sales revenue of more than $485 billion .

Channels for impulse purchase

Powering up e-commerce leadership. In 2017, Wal-Mart announced a new blended leadership structure in which the
retailer’s U.S. chief marketing officer leads the marketing strategies over Wal-Mart Stores, Wal-Mart e-commerce and
Jet.com to bring synergy. Additionally, Marc Lore, the co-founder and former CEO of Jet.com oversees Wal-Mart e-
commerce and Jet.com. Lore brought with him a coterie of senior managers from Jet.com, including Nate Faust,
Jet.com’s former chief operating officer. As the senior vice president for e-commerce and supply chain for Wal-Mart
U.S., Faust oversees all logistics and supply chain activities supporting both offline and online channel requirements.
Communication was an important element of this effort, as employees received memos from top leadership explaining
the changes that were made to blend online and retail leadership.

Dynamic merchandise flow management.

Wal-Mart’s ecosystem of distribution networks, transportation resources and sophisticated inventory management,
planning and replenishment systems has long been considered its competitive advantage. Indeed, at one point, Wal-
Mart was thought of as a supply chain and technology company as much as it was considered a retailer. Its ability to
dynamically manage the flow of merchandise through its distribution and fulfillment centers to its stores and end-
customers positions it as one of the market leaders capable of delivering anything ordered by a consumer anywhere
and at any time.

Information flow management.

Wal-Mart utilizes several different automated systems to manage the flow of information to its suppliers. Using the
SPARC mobile app, for instance, suppliers can view stock levels in specific location in real time. Wal-Mart’s proprietary
Global Data Synchronization Network (GDSN) platform securely provides continuous synchronization of accurate
product and location information. The framework can be used to automatically communicate and add products via the
Synchronized Item Network.

Wal-Mart’s high-level information flow diagramming

Given the rapid growth in the online business, coupled with high
demand uncertainty affecting investment risks, Wal-Mart utilizes a
range of service providers to subsidize its in-house technology
infrastructure. It uses these arrangements as test labs for future
technological acquisitions. These specialized service providers often
provide quick prototyping and support electronic data interchange
with suppliers as a way to assess the feasibility of a particular
technological solution.

Enterprise-wide network visibility

Across channels and stakeholders. The brand must own a suitable IT
and infrastructure to enable enterprise-wide network visibility across
channels and across key stakeholders (e.g. suppliers and customers) so that consistent and timely information is
presented to end customers

Innovate continuously and make smart acquisitions.

When organic growth is not possible, innovations and acquisitions extend the talent pool. To that end, Wal-Mart
acquired Jet.com and other selected online specialty retailers to fuel the development of its e-commerce capability
despite having the scale to develop in-house.

Develop and sustain your own ecosystem.

An ecosystem of the right suppliers can give your company a competitive advantage in the future. In the case of Wal-
Mart, that led to the development of its 3P marketplace and 1P ecosystem, while reducing product ownership and
exposures to associated inventory risks.