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    Supply Chain Management at Walmart

    Uploaded by

    Lovanda Sebayang
    The document summarizes Walmart's supply chain management strategies. It discusses how Walmart uses procurement and distribution, logistics management, and inventory management to ensure low prices and a competitive advantage. Key aspects of Walmart's supply chain include vendor managed inventory, cross-docking, and the hub and spoke distribution model. The use of technology like RFID tags and data sharing across the supply chain also allows Walmart to forecast demand accurately and maintain low inventories.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Supply Chain Management at Walmart

    Uploaded by

    Lovanda Sebayang
    136 views16 pages
    The document summarizes Walmart's supply chain management strategies. It discusses how Walmart uses procurement and distribution, logistics management, and inventory management to ensure low prices and a competitive advantage. Key aspects of Walmart's supply chain include vendor managed inventory, cross-docking, and the hub and spoke distribution model. The use of technology like RFID tags and data sharing across the supply chain also allows Walmart to forecast demand accurately and maintain low inventories.

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    SUPPLY CHAIN MANAGEMENT AT WALMART

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    The document summarizes Walmart's supply chain management strategies. It discusses how Walmart uses procurement and distribution, logistics management, and inventory management to ensure low prices and a competitive advantage. Key aspects of Walmart's supply chain include vendor managed inventory, cross-docking, and the hub and spoke distribution model. The use of technology like RFID tags and data sharing across the supply chain also allows Walmart to forecast demand accurately and maintain low inventories.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    136 views16 pages

    Supply Chain Management at Walmart

    Uploaded by

    Lovanda Sebayang
    The document summarizes Walmart's supply chain management strategies. It discusses how Walmart uses procurement and distribution, logistics management, and inventory management to ensure low prices and a competitive advantage. Key aspects of Walmart's supply chain include vendor managed inventory, cross-docking, and the hub and spoke distribution model. The use of technology like RFID tags and data sharing across the supply chain also allows Walmart to forecast demand accurately and maintain low inventories.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    29321148 - Sebayang Lovanda C A

    29321134 - Arifin Indarto


    29321152 - Archie Sultan Eka Buana
    29321147 - Addina Wangsaatmaja
    29321153 - Aswin Tresna Nugraha

    SUPPLY CHAIN
    MANAGEMENT AT WALMART
    Save money. Live Better
    By Syndicate Group 9
    Company Profile
    Type Discount Department Store/Public
    Founded Rogers, Arkansas, USA (1962)
    Head Quarters Bentonville, Arkansas USA
    General Key People Sa Walton (1918-1992), Founder, H. Lee Scott, CEO, S. Robson
    Information Walton, Chairman, Tom Schowe, CFO
    Industry Retail
    Products Discount Stores, Grocery Stores, and Hypermarkets
    Website www.walmart.com
    Revenue USD 351.1 Bn (2007)
    Valuations Industry Value USD 11.3 Bn (2007)
    Products Value USD 1.9 Mn (2007)
    Wal-Mart Retail Link Database
    Shipping to Distribution Centers or Factory Pick-Up
    Distribution
    Store Centers
    Network
    (Logistics)

    Sales Data at Data


    Retail Link Supplier
    Store Level Transmission Merchandise
    Database Network
    Production
    (Collected from via Global
    (Located in Accesses real-
    cash registers in Satellite by Suppliers
    Bentonville, AR) time sales data
    all stores) Network

    External Data Wal-Mart


    Internal Analysis
    (Weather
    forecast, Work to forecast
    Economic demand, work
    forecast, etc.) with suppliers
    Dilemma

    How to ensure Wal-Mart’s


    Supply Chain remained a
    key competitive advantage
    and to ascertain Wal-
    Mart’s position as the
    largest retail company
    ahead their competitors?
    Supply Chain Ecosystem

    Supply Chain: the sequence of


    organizations-their facilities, functions,
    and activities- that are involved in
    producing and delivering a product or
    service.
    Sometimes referred to as value chains.
    SUPPLY CHAIN
    MANAGEMENT
    Wal-Mart Supply Chain Flow
    SCM Benefits and Strategy Wal-Mart
    Benefit Strategy

    • Lower inventories • “Everyday Low Price” (EDLP)


    • Higher productivity • Effective use of logistics management
    • Greater agility • Effective inventory control
    • Shorter lead times • Bargaining power over suppliers
    • Higher profits • Global expansion for new market
    • Greater customer loyalty opportunity

    Wal-Mart Ways to Manage Supply Chain


    Procurement and Distribution;
    Logistics Management; and
    Inventory Management.
    Procurement and Distribution
    Bull Whip Effect Vendor Managed Inventory

    Occurs when slight demand variability is The step towards supply chain collaboration.
    magnified as information moves back upstream. Increased speed, reduced errors, and improved
    services.
    Flow-Time Analysis: Wal-Mart

    Data is
    Orders are Merchandise is The store will
    Customer Point-of-sale transmitted to Merchandise is
    generated from loaded onto restock the
    made a system captures warehouse for delivered to the
    previous-day trucks using shelves with
    purchase data in real-time Inv. store
    sales cross-docking merchandise
    Management

    Retail Link Merchandise is Merchandise is


    transmits data manufactured shipped to
    to suppliers based on warehouses
    historical and
    real-time data
    Logistics Management
    Cross Docking Hub and Spoke

    It means to take a finished good from the Used where materials are brought in to one
    manufacturing plant and deliver it directly to central location and then sorted for delivery to a
    the customer with little or no handling in the variety of destination.
    process.
    Inventory Management
    • The primary purpose to buffer against • These strategies include deployment
    any uncertainty that might exist in the strategies (push vs pull), control policies
    supply chain. Since holding of (the determinant of the optimal levels of
    inventories can cost anywhere between order quantity and reorder points), and
    20 to 40% of their value, their efficient setting safety stock levels at each
    management is critical in supply chain stocking location.
    operations.
    Supply Chain Improvement
    Remix Radio Freq. Identification (RFID) Tags

    Reduce the percentage of out-of-stock Automated data collection based on an


    merchandise at stores by redesigning its electronics tags or transponder, not a barcode.
    network of distribution centers.
    Why Technology is Important
    • Information links all aspects of • Increase productivity
    supply chain. That is why,
    information considered as critical • Reduction of paperwork
    element in supply chain • Lead time and inventory reduction
    management.
    • Facilitation of just-in-time system
    • E-business, replacing physical
    • Electronic transfer of funds
    business process with electronic
    ones. • Improved control of operations
    • Electronic Data Interchange • Reduction in clerical labor
    (EDI), a computer-to-computer • Increase accuracy on the data
    exchange of business documents
    Recommendation
    Maintain competitive prices Maintain the quantity of merchandise

    One of the key success is maintaining lower As the largest retail store, Wal-Mart able to
    prices, because they already have superiority in purchase the largest quantity of merchandise. It
    the size of company. Wal-Mart is a global means that they have competitive advantages
    company, so they do not have to worry about from cost efficiency related to logistics. They
    finding supplier. That is why, they have the can buy in such a large quantity, using bigger
    bargaining power over supplier to get as low trucks, but less fuel to go back and forth.
    prices as possible. Buying in larger quantity also provide an
    opportunity to get the biggest discount from
    the suppliers.
    THANK YOU

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