16. First retailing companies pioneered the retail HUB & SPOKE system. Goods centrally ordered ,assembled at massive warehouse.HUB from where they were dispatched to the individual stores i.e. SPOKE
18. Wall-Mart Procurement Sell thing in low price. Procured directly from the manufacturers , by passing all the intermediaries. Procure things from the vendors when product being bought IS NOT AVAILABLE ELSE WHERE AT A LOWER PRICE. Spends time meeting vendors and understanding their cost structure. Making the process transparent
19. USING EDI FOR PROCUREMENT Computer systems connected to its suppliers. EDI enables the supplier to download purchase order along with store-to store sales information relating to their products sold
21. LOGISTIC MANAGEMENT Fast and responsive transportation system. Distribution centers serviced by more than 3500 company owned trucks. Drivers were committed and dedicated to customer service. Hired only experienced drivers who had driven more than 300,000 accident âfree miles ,with no major traffic violation.
23. Finished goods were directly picked up from the manufacturing plat, sorted out and then directly supplied to the customer. Reduced the handling and storage of finished goods. Manufacturer directly forwarded the goods to a place called the âSTAGING AREAâ.
25. Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. Good communication system. Set up its own satellite communication system in 1983. A âHAND HELD COMPUTERâ which was linked to in-store terminals through a radio frequency network. Helped them to keep track of the inventory in stores ,deliveries ,and backup merchandise in stock at the distribution centers.
