Cross docking types

1)Flow through-Flow through distribution is an alternative way of referring to cross

docking. It is a strategy to achieve an advantage in terms of speed, productivity and
efficiency in a supply chain. Flow through distribution or cross docking is a logistic
method to distribute or supply goods from the supplier directly to the consumer with
almost no storage or handling time. It is usually implemented with trucks and two
dock doors (inbound and outbound) occupying minimal storage area. It receives the
product through an inbound door and transfers them to the outbound transportation
dock.
2)Manufacturing Cross-Docking works when a central distribution center receives
incoming materials and products, then sorts and configures the goods for shipment to various
manufacturing locations, whether elsewhere in a facility or to an outside location. Each
manufacturing location receives exactly what is needed for a defined production order.
3)In opportunistic cross-docking, you first work with standard inbound and
outbound deliveries and start the standard goods receipt process or goods issue
process. You determine the cross-docking relevance after the goods have entered
the warehouse or before they leave it.
4))Preallocated-goods are already packed and labeled by the manufacturer and ready for
shipment to the distribution center from where its sent to store.close coordination and
cooperation is there
5)Distributor-manufacturer delivered goods directly to the retailer no intermediary
involved.major storage cost and savings .requires fatser transportation and highly
responsive supply chain.

Inventory management
Walmart Inc.’s inventory management is one of the biggest contributors to the success of the
multinational retail business. Considering the mammoth size of the company, effective and
efficient inventory management is of critical importance in operational effectiveness.
Walmart is known for cutting-edge technological applications for its inventory management
aspect of operations. The company has perfected the art of innovating its inventory
management methods and strategies. Thus, Walmart is an example of the benefits of
advanced technology and innovation in optimizing inventory management performance.
While there are a variety of other factors contributing to the success of this business,
advanced inventory management is one of the core organizational capabilities that enable
Walmart’s leadership in the global retail industry. Such leadership establishes the company’s
competitive advantages relative to firms like Target and Amazon in the retail market.

1)vendor mngmt

Walmart’s success in managing its inventory is partly due to the effective implementation of
the vendor-managed inventory model. In this model, suppliers access data from the
company’s information systems, such as data on current inventory levels and the rate at
which certain goods are sold. Suppliers decide when to send additional goods to Walmart,
while the company monitors and controls the actual transit of goods from warehouses to the
stores.Walmart’s vendor-managed inventory has the benefit of minimizing delays in the
movement of inventory across the supply chain. This benefit is achieved because suppliers
can directly access current data about the inventory of their goods at Walmart stores. Another
beneficial effect of using the vendor-managed inventory model is the minimization of costs in
inventory management activity. The company does not need to spend for extra personnel to
manage each supplier’s goods. Instead, this financial and human resource expense is directly
passed on to Walmart’s suppliers.

Types

Finished goods inventory. The finished goods inventory type is the most significant in
Walmart’s business. Finished goods arrive at the company’s stores. These goods are stored
and the inventory is replenished regularly. Thus, the role of this type of inventory is to
support Walmart store operations, where the finished goods are moved from the company’s
merchandise distribution centers to be sold to the retail buyers at the stores.

Transit inventory. Walmart uses the transit inventory type as the second most significant in
supporting its retail operations. This type of inventory refers to the goods that are held while
in transit. The global extent of Walmart’s supply chain means that some goods are in transit
for days or weeks. The role of this inventory type is to support the replenishment of the
finished goods inventory in the merchandise distribution centers and Walmart stores.

Buffer inventory. Walmart uses the buffer inventory type in its stores by keeping a small
margin of extra goods in order to maintain business continuity when demand suddenly
fluctuates. For this purpose, there will always be an extra stock of goods at Walmart stores.
The role of this type of inventory is to ensure the adequate capacity of the company to satisfy
sudden increases in demand, considering that current retail market prediction models may be
accurate, but not perfect in modeling such fluctuations.

Anticipation inventory. Walmart uses the anticipation inventory type to ensure optimal
capacity to satisfy consumer demand. This type is similar to the buffer inventory because the
company maintains extra stocks of goods to address an increase in demand. However, the
anticipation inventory type is based on seasonal changes and corresponding empirical data on
seasonal changes in the market. For example, Walmart dramatically increases its inventory
size right before and during Black Friday to satisfy the massive increase in demand during
this special shopping day. The company also uses anticipation inventory for the Christmas
season and some long holiday weekends. Walmart does not use the anticipation inventory
type during regular shopping days, which are basically the rest of the year. The role of this
inventory type is to enable the company to satisfy expected seasonal increases in demand.

Measure of inventory management

Considering the size of its business and the variety of products it offers, Walmart uses
numerous variables as measures of inventory performance. The following measures are some
of the most significant:

1. Inventory turnover
2. Stock-out rate
3. Inventory size
Inventory turnover is the rate at which Walmart’s inventory is sold out and replenished. It is a
measure of the cost of keeping each item in stock. A higher inventory turnover rate is less
costly and more desirable for the company. The stock-out rate is the frequency at which
Walmart’s inventory becomes inadequate in satisfying demand. A lower stock-out rate is
desirable. In addition, the company uses inventory size as a gauge of cost. As noted, the
corporation spends less for a smaller inventory. These measures reflect the cost minimization
objectives linked to Walmart’s cost leadership generic competitive strategy, which requires
low costs to maintain attractive low selling prices.

Managing inventory across Walmart suplly chain

ABC Analysis. The Category A items in Walmart’s inventory include the finished goods

sold at its stores and operations equipment, such as information systems for supply chain
management and inventory management. Items in this category are regularly monitored and
recorded. The Category B items in Walmart’s inventory are the other supplies or materials
used for operations, such as maintenance equipment and office furniture. These items are
moderately monitored and have moderate recording accuracy. Category C involves the least
monitored and recorded inventory items, such as janitorial supplies and office supplies like
paper. This category has the least impact on the company’s daily retail operations.

Inventory Information Systems. Walmart is known for its advanced information systems

specifically designed to support international retail operations, including e-commerce
operations. These information systems cover every area of the business. In inventory
management, Walmart uses a system that allows suppliers to access data on the inventory
levels of their products. This system supports the company’s vendor-managed inventory
model, which helps minimize operating costs and enables the business to offer low selling
prices.

Bullwhip Effect in Walmart’s Supply Chain. The bullwhip effect is the propagation of
error in the form of inadequacy or excesses in the supply chain. A small error in one part of
Walmart’s supply chain could lead to bigger errors and higher costs across the supply chain.
The company minimizes the bullwhip effect in its supply chain through the vendor-managed
inventory model. Vendor-managed inventory allows suppliers to directly access Walmart’s
inventory data. In this way, the company’s personnel have minimal contribution to possible
errors in managing the movement of goods from the suppliers to the company’s stores.
Finer aspects of inv mgmnt
1)retail link system
Mpp

1. Massively Parallel Processing (MPP), involves breaking up a query so that multiple

processors can run it against multiple storage devices, then reassemble the responses to produce
an answer. Another alternative is SMP (Symmetric Multiprocessing), in which multiple
processors juggle tasks using caching techniques and a common pool of memory.
What's the benefit? Quicker access to information in a world of huge databases. With MPP, adding
processors improves access time at a nearly linear rate: A 32-processor machine can query more than 3
terabytes of data in about the same time that a single processor could query 100 gigabytes. While the
scalability and performance of SMP systems keeps improving, MPP architectures still dominate very
large data warehousing applications.

Satellite system
When Wal-Mart introduced its 24 million dollar satellite communication system in 1987, it was ruled the
worlds largest private satellite communication network. This contemporary emerging technology,
although not as technologically advanced as some satellite systems today, made a vast difference in the
performance of an emerging organization. This network allows the instantaneous transfer of data
between headquarters, distribution centers, suppliers and stores. Moreover, this vast networking system
allows for management to communicate effectively with all employees, or even better, to hold meetings
with the managers from each store to get direct feedback as quickly as possible. Wal-Mart implemented
this new technological resource to create just-in-time ordering with many of its key suppliers.
Essentially, what this means is that when the stock of certain products hit a reordering point, an
automated response is sent out instantaneously via satellite to the supplier of that product, purchasing
more units, automatically shipping the units to its stores, and paying for the new units electronically all
in the blink of an eye. This form of payment and restocking vastly decreases the amount of time it would
normally take, thus saving time and money. Moreover, video signals can be broadcasted from
headquarters to all stores and other facilities. This ability, while acting as a communications tool
between HQ and management, also was used, and continues to be used as a marketing ploy as well by
the cunning commercial supergiant One of the greatest benefits of Wal-Mart’s satellite network is its
ability to cut costs by saving time and effort Credit card authorizations are faster and more accurate,
speeding up checkout services at stores nationwide, boosting customer morale. The network cuts
telephone costs by about 20 to 30 percent, while simultaneously offering high speed communications.
Training videos can be sent out instantly by transferring the master video to stores as opposed to
physically mailing videos to each of its stores.

Use of technology at walmart

RFid
Radio-frequency identification (RFID) uses wireless electromagnetic fields to transmit
data, generally used for the purposes of identifying and tracking tags attached to objects.
The tags contain electronically stored information. Unlike a traditional barcode, the tag
does not have to be within a line of sight of the reader, and can be implanted in the
tracked object. 
Walmart has grown to the world’s largest retailer by becoming the masters of supply
chain management. This in turn, allows them to bring the lowest possible price to
customers.
Using RFID to identify and track inventory through the supply chain is ideal because this
technology allows for fast and easy real-time transfer of data stored on tags on a product
or pallet. RFID tags can also transfer much more information than bar codes traditionally
used for this purpose.
Walmart continuously boasts numerous benefits of using RFID technology for effective
inventory management, reducing the Bull-whip effect and reducing excess inventory
across the entire supply chain.

Barcode-
Barcodes contain details about a product such as the size, type, and manufacturer.
However, it doesn't contain price information, which is often stored in a database.
Point of Sale (POS) software or machine helps to match product information on
a barcode with the stored price of the product.
barcodes offer automatic product identification, extremely fast recognition and
implementation of data. (Barcodes save time.) Barcodes provide asset & security
tracking, theft deterrence, peace of mind, and a demonstrable reduction in
loss/liability. (Barcodes reduce liability.)
 Better accuracy.
 Automatic identification.
 Data capture.
 The new Walmart barcode rules require flexographic printing,
The GTIN barcode is the only barcode where Walmart specifies the
flexographic print technology. Other variable information (such as dates and
lot numbers) can be applied using thermal inkjet.