Department of Fashion Management Studies

National Institute of Fashion Technology

(Ministry of Textiles, Govt. of India)

SUPPLY CHAIN & E-COMMERCE

MANAGEMENT

Presented By:
Akshay Yadav
Bidya Pradhan
Ishani Senapati
Mervin Maxinas
Payal Parida

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 CONTENT
Sl. TOPIC PAGE
No. No.
1. WALMART 3

2. TIMELINE 4

3. SUPPLY CHAIN OF WALMART 4

4. EXISTING TECHNOLOGIES 5-6

5. SUSTAINABLE TECHNOLOGY 6-7

6. WALMART VALUE CHAIN 7-8

7. VALUE CHAIN ANALYSIS 9

8. CHALLENGES FACED 10

9. EMERGING TECHNOLOGIES 11-16

10. CONCLUSION 16

11. REFERENCES 17

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WALMART is one of the largest retail corporations in the world, with
headquarters in Bentonville, Arkansas, United States. The company was founded by Sam
Walton in 1962 and has since grown to operate over 11,000 stores in 27 countries,
employing over 2.3 million people worldwide. Walmart operates a wide r.ange of retail
formats, including supercenters, discount stores, grocery stores, and online shopping
platforms. The company offers a diverse range of products, including groceries, clothing,
electronics, home goods, and more. Walmart is known for its commitment to offering low
prices to customers, achieved through a combination of efficient supply chain management,
economies of scale, and a focus on cost reduction. The company is also a leader in
sustainability, with a goal of achieving zero waste and being powered by 100% renewable
energy.

Supplier Management: Walmart works closely with its suppliers to ensure that they meet
the company's standards for quality, sustainability, and ethical practices.
Distribution Centers: Walmart operates over 150 distribution centers in the United States
alone, which serve as hubs for receiving, sorting, and shipping products to stores. These
centers use advanced technology such as automated sorting systems, robotics, and data
analytics to improve efficiency and reduce costs.
Transportation: Walmart has its own fleet of trucks and contracts with third-party carriers
to transport products from its distribution centers to stores. The company uses a variety of
transportation modes, including trucks, trains, and ships, to optimize delivery times and
costs.
Inventory Management: Walmart uses advanced technology to track inventory levels in
real-time and ensure that stores are stocked with the right products at the right time. The
company uses a variety of forecasting and replenishment techniques to minimize stockouts
and reduce excess inventory.
Store Operations: Walmart's supply chain is closely integrated with its store operations,
with real-time data sharing between stores, distribution centers, and suppliers. This
integration allows Walmart to quickly respond to changes in demand and optimize inventory
levels.

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 TIMELINE

SUPPLY CHAIN OF WALMART

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EXISTING TECHNOLOGIES IN WALMART SUPPLY CHAIN
Walmart is a major player in the retail industry, and it has a complex and sophisticated
supply chain. The company has invested heavily in technology to optimize its supply chain
operations and improve efficiency. Some of the existing technologies used by Walmart in
its supply chain include:
1. Radio Frequency Identification (RFID): Walmart was one of the early
adopters of RFID technology in the retail industry. RFID tags are attached to products,
and they help Walmart track the location and movement of products throughout its
supply chain. This technology helps Walmart to improve inventory accuracy, reduce
out-of-stocks, and optimize replenishment.
2. Warehouse Management Systems (WMS): Walmart uses WMS to manage
its distribution centres. This technology helps Walmart optimize its warehouse
operations, from receiving and put away to picking and shipping. WMS allows
Walmart to track inventory levels, improve order accuracy, and reduce cycle times.
3. Bar Code System: Walmart uses barcodes to track inventory and manage its
supply chain operations. Barcodes help Walmart identify products and track them as
they move through the supply chain.
4. Private Satellite System: Walmart has its own private satellite system that it uses
to communicate with its stores and distribution centres. This technology allows
Walmart to quickly transmit data and information across its supply chain network.
5. Electronic Data Interchange (EDI): Walmart uses EDI to exchange electronic
documents with its suppliers and partners. EDI enables Walmart to quickly and
efficiently process orders, invoices, and other documents, reducing the time and cost
associated with manual processes.
6. Retail Link: Walmart's Retail Link is a web-based platform that allows suppliers
to access and analyse data related to their products sold at Walmart stores. This
technology helps suppliers improve their inventory management, forecast demand,
and optimize their supply chain operations.
7. My Productivity App: Walmart's My Productivity App is a mobile app designed
for its employees to manage their daily tasks and activities. This technology helps
Walmart employees to improve their productivity, communicate with their
colleagues, and access important information related to their job.

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 SUSTAINABLE TECHNOLOGY IN WALMART SUPPLY
CHAIN
Walmart is committed to sustainability and has implemented several sustainable
technologies in its supply chain operations to reduce its environmental footprint and
improve social responsibility. Some of these sustainable technologies are:
1. Electric and Hybrid Trucks: Walmart has added a fleet of electric and hybrid
trucks to its transportation network. These vehicles produce fewer emissions than
traditional diesel trucks, reducing Walmart's carbon footprint and improving air
quality. Among its early targets were increasing the efficiency of its trucking fleet. In
the years since, Walmart has committed to achieving zero waste in its U.S. and
Canada operations by 2025, and to powering its global operations by 100% renewable
energy by 2035.
2. Renewable Energy: Walmart has invested in renewable energy sources such as
wind and solar power. The company has installed solar panels on the roofs of some
of its stores and distribution centers, reducing its reliance on fossil fuels and lowering
its energy costs. Walmart was the single largest procurer of solar and wind power in
United States in 2019, and currently gets 36% of the electricity from renewable
sources.

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3. LED Lighting: Walmart has switched to energy-efficient LED lighting in its stores
and distribution centers. LED lighting uses less energy than traditional lighting,
reducing Walmart's energy costs and carbon footprint.
4. Sustainable Packaging: Walmart has implemented sustainable packaging
solutions to reduce waste. For example, the company has developed a packaging
scorecard to evaluate the sustainability of its packaging materials and encourages its
suppliers to use more sustainable materials.
5. Recycling: Walmart has implemented a recycling program in its stores and
distribution centers to reduce waste. The company recycles cardboard, plastic, and
other materials, reducing the amount of waste sent to landfills.

WALMART VALUE CHAIN

1. FIRM INFRASTRUCTURE
• Successful integration of activities in value-chain.
• Maintain focus on brand and concept and bringing store-level concepts back to
top
• Relied on balance scorecard
2. HUMAN RESOURCE MANAGEMENT
• Focus on the individual employees - empowering them as "associates" and equal
feedback
• Competitive benefits and wages and great training program

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3. TECHNOLOGY DEVELOPMENT
• Leading-edge, highly developed IT systems completely integrated with entire
supply chain
• Automated distribution sites
• Real-time access to sales information from all stores
4. PROCUREMENT
• Real-time connection with store inventories and suppliers
• Direct contact with suppliers, by-passing middle-man
• "Best Retailer to do Business With* - could provide greater operating
efficiencies by supplying real-time data
• Cross-border relationships with China
5. INBOUND LOGISTICS
• Real-time data of inbound and in-progress inventory data
• Conveniently location of all highly automated distribution facilities
• Majority of inventory flows through dist. Centers
• Own trucking fleet - largest in US
• Mastered large-scale cross-docking
• Scan N Pay' model
6. OPERATIONS
• Easily replicable model
• Flexible floor-plain
• Similar operating concepts
• Only real-time inventory and sales
• High sales per square foot
7. OUTBOUND LOGISTICS
• Trucks never return with an empty truck
8. MARKETING AND SALES
• Always Low Prices.
• Community involved
• Tailor product assortment by community and store layout
• Only "big-box” around
9. SERVICE
• Welcoming environment with "Greeters”.
• High focus on customer service.

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VALUE CHAIN FLOW TIME ANALYSIS

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 CHALLENGES FACED BY WALMART
1. Operation Size and Scale
It should come as no surprise that Walmart's enormous size offers numerous logistical issues
given that it has more than 10,000 shops operating in 24 countries and more than 2.2 million
employees. The sheer size and complexity of Walmart's operations is one of the biggest
obstacles to its supply chain. Millions of products travel everyday over great distances and
through the intricate supply chain thanks to the company's extensive global network of
suppliers, retailers, and distribution centres. The coordination and management of the
movement of goods, as well as guaranteeing that commodities are delivered to stores and
customers in a timely and economical manner, are made more difficult as a result.
2. Purchasing Products from Various Vendors and Suppliers
Purchasing products from numerous vendors and suppliers is another difficulty for Walmart
in managing its supply chain. Walmart must carefully manage its connections with these
vendors given that it has millions of goods and thousands of suppliers to ensure that it has
the things that customers want at the proper price and quality. This calls for a comprehensive
and complex procurement procedure as well as efficient tools and systems for monitoring
and controlling vendor performance. The increased significance of sustainability in the
supply chain, including lowering greenhouse gas emissions and implementing more
sustainable practises and technology, is another issue that is highlighted by this dilemma.
3. Effective Inventory Management
Another difficulty for Walmart is successfully managing inventory levels. Walmart must
carefully balance the quantity of inventory it has in each of its tens of thousands of stores
and warehouses to make sure that it has the items that customers desire without using up too
much capital on unsold goods. In the end, Walmart would want access to real-time inventory
data and the integration of online and offline operations to increase the speed and efficiency
of the supply chain in order to manage such high inventory levels.
4. The Retail Industry's Rapid Transformation
The retail industry's fast change is the fourth significant obstacle for Walmart's supply chain.
Walmart's supply chain operations have had to expand and adapt in recent years to keep up
with the growth of eCommerce and the importance of online purchasing. Finding ways to
combine its online and offline activities has required investing in new technologies and
procedures to increase the speed and efficiency of its supply chain. As a result, in the fiercely
competitive retail market, eCommerce behemoths like Walmart must continually be
innovative and ahead of the competition to respond rapidly to developments in the retail
business.

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EMERGING TECHNOLOGIES USED BY WALMART IN
SUPPLYCHAIN
1. Advanced Technologies and Data Analytics
a. Data analytics -
i. The application of cutting-edge technologies and data analytics is one
potential response to these problems.
ii. Walmart has reportedly already started to invest in technology like
artificial intelligence and machine learning to enhance its supply chain
management.
iii. As a result, Walmart can get a clearer picture of its supply chain, track
the status of orders, spot any delays or bottlenecks, and take remedial
action to run its operations more effectively.
b. IOT for tracking food safety
i. To manage food safety, Walmart has incorporated the Internet of Things.
ii. IOT gathers data from sensors at every stage of the supply chain,
including production, distribution, warehousing, and retail, and offers
details about the characteristics of the product.
c. Augmented Reality for customer’s enhanced experience
i. Walmart has added an augmented reality (AR) scanner to its smartphone
app; when objects are pointed at on a shelf, the camera displays
information about each item, including its name, price, and user reviews.
ii. Using Apple's ARKit technology, a team first created the technique
during a hackathon held within Walmart.To incorporate this technology
into their retail locations, Walmart also teamed up with the augmented
reality software company Zappar.
iii. Customers can scan the Zapcodes at the stores to start the augmented
reality experience, which is supported by a variety of companies
including Pepsi, Nickelodeon, etc.
iv. Meetings with company mascots like Tony the Tiger or Chester the
Cheetah, mini-games, 3D animations, and face filters are some of the
AR-related activities. All of this dramatically improves the client
experience.
d. AI for stock management and store cleanliness
i. In its stores, Walmart is developing an artificial intelligence lab that will
employ cameras to track lost items and spot low-running supplies.
ii. Bossa Nova, a California-based company, and Walmart have teamed up
to develop AI-based robots that would wander the store and spot shelves
that needed to be restocked.Texas A&M University's computer vision
research was funded by Walmart.
iii. One of the initiatives entails developing camera systems that could find
water on the floor and alert the staff so they could clean it up.

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 iv. In order to put this into action, Walmart had also teamed up with Brain
Corporation to develop robots that clean floors.
v. Such a robot uses a variety of sensors to search for people and other
impediments, locate the regions of the floors that need to be scrubbed,
and more.
e. Virtual Reality for enhancing the employee-customer experience
i. Virtual reality has been used by Walmart to train its employees. Through
the headsets, the colleagues can watch modules to learn.
ii. This enables them to simulate a real-world retail setting for
experimentation, learning, and problem-solving.
iii. Walmart was really among the first businesses to take advantage of
virtual reality's capacity to improve staff education.
iv. Walmart even purchased virtual reality firm Spatialand to develop VR
applications for its physical stores.
v. In 2017, Spatialand and Walmart's Store No. 8 collaborated on a project
that produced a VR proof-of-concept experience for customers.
vi. According to officials, the product Spatialand is developing for Walmart
may not be seen for 12 to 18 months. The VR items at Walmart's store
appear to be visible.
f. Drone delivery
i. To test various drone applications, Walmart has forged three agreements
with drone operators.
ii. It collaborated with Flytrex in the first agreement to send groceries and
other household necessities to Fayetteville, North Carolina.
iii. In the second agreement, Zipline will supply medical and healthcare
supplies.The third agreement with DroneUp is succeeding, as Walmart
has launched the first of its drone "Hubs," which are situated within
Walmart shops. 90% of Americans live within 10 miles of a Walmart
shop, and each one is tailored to its local community's demographics.
iv. And just this aspect might give it a significant advantage over Amazon
in the fight for drone deliveries. By 2022, Walmart plans to expand drone
deliveries to 6 other states.
2. Strategic Partnerships and Collaborations
a. Walmart has already begun partnering with other companies and organizations
to share resources and expertise, and this trend is likely to continue as the
company looks for ways to overcome its supply chain challenges.
b. Walmart partnered with IBM to implement the Food Trust blockchain for
its live food business. It quickened tracing the food from farm to store in real-
time, thus making the process more transparent.
i. BLOCKCHAIN TECHNOLOGY is a digital ledger that records
transactions in a secure and transparent manner, in supply chain it helps
to track the journey of a product from the manufacturer to the end
consumer.

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 ii. Walmart's leafy green suppliers use blockchain technology to trace their
products all the way back to the farm to validate how the product was
grown, handled, stored, and inspected.
iii. They also use this technology to track the provenance of certain
products, such as seafood and pork. By recording information about the
product's origin, processing, and transportation on the blockchain,
Walmart can verify that the product was produced ethically and
sustainably.

c. COLLABORATION WITH SHIPBOB

i. ShipBob offers warehousing solutions to help manage the inventory
more efficiently. When it outsource fulfilment to ShipBob, team of
fulfilment experts take care of the entire process of receiving, storing,
and managing the inventory.

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 ii. By storing inventory across one or more fulfilment center location, it
benefit from lower warehousing costs while also improving delivery
speeds.
iii. Once ShipBob receives the inventory and orders are placed on
Walmart.com, they are automatically sent to ShipBob to be picked,
packed, and shipped.
iv. From the ShipBob fulfilment platform, can track activity, manage SKUs
and inventory levels across locations, and view storage costs.
d. COLLABORATION WITH WITRON
i. Walmart has partnered with Witron, a German-based automation
technology company, to develop and implement an advanced automated
order fulfilment system for their warehouses.
ii. Witron's automated technology uses advanced algorithms and robotics
to optimize the picking and packing of orders.
iii. The system is capable of handling large volumes of orders in a short
period, reducing errors and improving efficiency.
iv. It is also designed to be flexible, which allows it to adapt to changes in
the order volume and profile. This ensures that Walmart can quickly and
efficiently adjust to fluctuations in demand and stay competitive in the
market.
3. Improving Sustainability
a. Walmart’s Circular Connector has been designed as an online tool to bridge
the gap between companies searching for more sustainable packaging ideas and
those that offer them.
i. It’s a platform that will aim to help accelerate packaging innovation and
its implementation. Making it easier for sourcing teams and brand
companies to quickly find sustainable packaging solutions- enabling
everyone to move faster together on reducing waste from our
communities, our oceans and our environment.
ii. With the Circular Connector, the journey will become easier for brands
and innovators to identify and implement more sustainable packaging
solutions.

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b. HUB AND SPOKE MODEL
i. The hub and spoke model is a logistics strategy that Walmart uses to
manage its supply chain operations. The model involves using a central
distribution center, or hub, to coordinate the movement of products to
smaller distribution centers, or spokes, which then deliver the products
to individual stores
ii. Allows Walmart to consolidate its inventory and transportation
operations, reducing costs and improving efficiency.
iii. Can optimize its transportation routes and reduce the number of trucks
on the road, reducing fuel consumption and emissions.
iv. For distribution, Autonomous mobile robots (AMRs) are used to
transport products and materials throughout the distribution center,
allowing Walmart to optimize its inventory management and reduce the
need for manual labor.
v. Walmart has also implemented robots in its stores to perform tasks such
as scanning and shelving products, cleaning floors, and delivering items
to customers. This helps to free up employees to focus on customer
service and other value-added tasks.

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 CONCLUSION
• Walmart is known for having one of the most efficient and effective supply chain
management systems in the world.
• Walmart's supply chain is based on the principles of just-in-time inventory
management, which involves keeping inventory levels low and restocking as needed
to minimize waste and maximize efficiency
• In addition, Walmart has implemented a number of sustainability initiatives in its
supply chain, such as reducing greenhouse gas emissions, promoting sustainable
agriculture, and minimizing waste.
• Walmart's supply chain is a testament to the power of innovation, efficiency, and
sustainability in driving business success.

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 REFERENCES

1. Fathima, F. (n.d.). Walmart Supply Chain Management Analysis. Retrieved from

LOGISTIC BREW: https://stockarea.io/blogs/walmart-supply-chain-management-
analysis/
2. Flora, M. (2022, AUGUST 19). Walmart Supply Chain: What Makes It (Still) So
Successful . Retrieved from SHIPHOB: https://www.shipbob.com/blog/walmart-
supply-chain/
3. Rickerby, M. (2020, JANUARY 4). Walmart Supply Chain: Why It Will Continue To
Dominate Through 2023. Retrieved from EXTENSIV:
https://www.extensiv.com/blog/supply-chain-management/walmart
4. Vipin Singh, M. K. (n.d.). Walmart Innovation Strategy Uses Emerging Tech and
Acquisitions. Retrieved from GREYB: https://www.greyb.com/blog/walmart-
strategy/
5. Walmart Supply Chain Challenges and Solutions. (2022, DECEMBER 7). Retrieved
from DATAHAWK: https://datahawk.co/blog/walmart-supply-chain-solutions

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