2. Wal*Mart - Introduction

3. Differences among discount stores,
superstores, Supermarkets, Sam’s club,
Hypermarket

5. Wal*Mart – Phenomenal Distribution

6. Wal*Mart – Phenomenal Distribution

7. Wal*Mart – Phenomenal Distribution

8. Wal*Mart – Phenomenal Distribution

9. Wal*Mart – Vendor relationships (VMI)
Inventory
managed by
Less physical manufacturer Decision making
inventory count pushed up the
time supply chain
Less time Sustainable
finding
misdirected Inv. VMI competitive
advantage
Less time Reduce the
entering data distortions in
into Cust. Sys. Links partners ordering
together and
grants authority

11. The CPFR Model

12. Forecasting and Replenishment
Process
Current State
RETAILER
Retailer POS Data
Market/item Create item-level
knowledge, store Collect POS Data and forecast and special Create purchase orders
planning, item other supporting event calendar (e.g..., for items
planning by information promotions, store
individual stores openings, item
distribution)
No Retailer and
manufacturer
?
Decision - Is
manufacturer able
discuss other
options
to meet retailer’s
purchase order?
MANUFACTURER
Yes
Marketing Programs and
Promotional developed with Input
Production planners Forecast drives production
from Sales/Marketing (e.g...,
validate item-level Product shipped to meet
pricing, item additions/deletions)
forecast purchase order
and market/customer knowledge
specifications

13. Collaborative Planning, Forecasting, and
Replenishment
Future State Process Overview
YES
Manufacturer Manufacturer
Retailer MRP System
Decision - Is
exception within
tolerance?
Exception analysis process
Order Forecast
Retailer & Manufacturer
generate forecast &
special event calendar at Retailer
item level, and maintain Replenishmen
it on the Internet t
System
Manufacturer
Request and Retrieval
of event calendar
and/or detail Retailer
information
Manual Collaboration
YES
Decision - Does
message, event NO
calendar and/or detail
Adjust Item Forecast information explain
discrepancy?

14. Collaborative Planning, Forecasting, & Replenishment
Benefits
Joint Business Planning
Retailer
Manufacturer
Common Event
Calendar
Joint Forecast

15. Various Information Systems used to
improve the Supply Chain
• Electronic scanning of universal product code (UPC) at the POS , RFID
• Ensure accurate pricing
• Improve efficiency
• Reduce Shrinkage
• Improve communications
• Satellite system
• Data collected and analysed
• Observing Merchandise flow, overstock, discount
• Video transmissions, credit card authorizations, and inventory control
• Retail Link System
• Electronic data interchange (EDI)
• CPFR
• Forecasting
• Planning
• Replenishing
• Shipping applications
• Voice based tools and applications
• Retail Link system

16. Wal*Mart – Store Operations

17. Wal*Mart – Store Operations

18. An Universal Product Code
The major advantages Of RFID are:
- The movement of inventory can be
tracked
- Goods can be received and shipped faster
- Ease of predicting product demand
- Shoppers can save time
- Out of stock situations can be avoided
- Shoppers get a better deal as system
becomes more efficient
- The right products are available at the
right stores at the right time
- Boost sales An EPC RFID tag used by Wal-Mart

19. Some EDI benefits are:
• Improved customer service
• Decreased Operating costs as paper work and clerical tasks are
reduced
• Eliminated information float as EDI speeds up the delivery of goods
and services
• More accurate and timely information allows for better control over
inventory and reduces safety stocks
• Faster account reconciliation lowers accounts payable overhead
• Improved cash flow process frees up capital for other investments.

20. Retail Link
• Retail link provides sales and
inventory data—by item, store, and
day—to vendor partners or
suppliers
• It contains record of every sale of
every individual item at every Wal-
Mart store, every hour of the day for
the last 2 years.

22. Benefits of SCM to Wal*Mart
 Increasing visibility into all business
transaction on a timely basis
 Streamlining the physical pick pack process
leading to reduced errors and redundant
labor
 Eliminating charge backs and fines by retailer
compliance and permitting access to all data
from EDI through shipping
 Keeps inventory costs down
 Quickly and effectively predict the needs of
customers in different areas and from different
backgrounds

23. Benefits of SCM to others
Benefits of SCM to other businesses and organizations can be viewed as
Streamlined inventories and
Cost and Financial reduced costs
Reduced errors and redundant
labor
Increased visibility of all business
Retailers
transaction
Manufacturers Improved return on inventory
Improvements investment
Distributors Optimized transportation costs,
routes, and load times
Increase cost savings from
outsourcing for low cost materials
E.g. Dell and Intel have created an
increasingly streamlined supply chain
model with mass-customization and
customer-direct capabilities.
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24. Benefits of SCM to others
Benefits of SCM to other businesses and organizations can be viewed as
Improved forecast accuracy as well
as resource and distribution planning
Processes
Improved manufacturing and
replenishment cycle time
Enhanced manufacturing scheduling
 Manufacturers
 Construction companies Increased effectiveness of planning
and decision making
 Automotive industry Improvements
Improved overall efficiency in
production
Enhanced a seamless multi-channel
shopping
Reduced supplier base
E.g. Cisco uses the Internet to enable
deep process integration of all levels of
the extended supply chain.
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25. Benefits of SCM to others
Benefits of SCM to other businesses and organizations can be viewed as
Reduced out-of-stock situations
Services Improved order fill rates
Increased ship-complete and on-time
percentages
 Retailers
 Service companies E.g. Wal-Mart uses the replenish
Improvements model to keep their shelves full and
penalize their suppliers for late
shipment.
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26. • www.walmartfacts.com
• www.wikipedia.com
• walmart.com
• walmartstores.com
Thank You