Walmart was founded in 1962 by Sam Walton. It now operates over 8,500 stores globally under 55 names. Walmart pioneered an efficient supply chain and logistics system focused on reducing costs. This allowed it to procure goods directly from manufacturers and offer consistently low prices to customers, fueling its rapid growth to become the world's largest company by revenue. Key to its success was heavy investment in technology and data systems to track inventory and sales across its vast network of stores.
2. INTRODUCTION
The company was founded by Sam Walton in 1962,
Wal-Mart has 8,500 stores in 15 countries, under 55 different names.
The main strength of this company is logistics & supply chain
management.
Wal-Mart focus on improving sales & innovative technologies, constantly
reducing cost.
Wal-Mart operated more than 3500 discount stores.
Competitor of this company are: Carrefour ,Ahold, Metro AG .
4. BACKGROUND
Walton was born in 1918
1940-set up own store
1969-80s-expanded business
1984-640 Wal-Mart stores
1992-Joint venture with Cifra
1997-largest volume discount retailer
2002-largest company in terms of revenues
6. PROCUREMENT AND DISTRIBUTION
The main emphasis of Wal-Mart was to reduce its purchasing
cost and to offer the best prices to all its customers.
The goods available at Wal-Mart were really low which the
customers were sure that they would not get at any other store.
Goods were directly procured from manufacturer, passing all the
intermediaries
Big manufacturers like proctor and gamble were also spared.
The manufacturing process of it was made transparent so that
manufactured had any way to grab extra price.
7. CONTINUED….
• Wal-Mart had approx. 40 distribution centers located in
different geographical locations.
• About 85% were available at the stores and those were passed
through distribution centers Automotive and drug products were
directly available to the stores.
• Sophisticated barcode technology and hand held computer system
were easier and more economical.
• The handled computers the packaging department to get accurate
information .
12. INVENTORY MANAGEMENT
An accelerated delivery system by which stores located within a certain
distance of a geographical center could receive replenishment within a
day.
Wal-Mart invested heavily in IT and communications systems to
effectively track sales and merchandise inventories in stores across the
country
Wal-Mart set up its own satellite communication system in 1983.
Reduce unproductive inventory by allowing stores to manage their own
stocks, reducing pack sizes across many product categories, and timely
price markdowns
13. WALTON SAID……
Walton said, “I can walk in the satellite room, where our
technicians sit in front of the computer screens talking on
the phone to any stores that might be having a problem with
the system, and just looking over their shoulders for a
minute or two will tell me a lot about how a particular day is
going. On the screen, I can see the total of the day’s bank
credit sales adding up as they occur. If we have something
really important or urgent to communicate to the stores and
distribution centers, I, or any other Wal-Mart executive can
walk back to our TV studio and get on that satellite
transmission and get it right out there. I can also go every
Saturday morning around three, look over these printouts
and know precisely what kind of work we have had."
14. WALMART AND P&G
Automated Reordering System:-
LOW STOCK
ITEM
SIGNAL TO
P&G
RESUPPLY ORDER
DISTRIBUTION WALMART
NEAREST P & G
CENTRE STORES
FACTORY
15. CONTINUED
The ‘Magic Wand’
Point-of-Sales (POS) system
Centralized inventory data system
In 1991, Wal-Mart had invested approximately $4 billion
to build a retail link system
used Massively Parallel Processor (MPP)
16. BENEFITS REAPED
Low transportation cost
Priced its goods economically and the prices varied
from day 2 day
Offer higher discounts
Faster inventory turnover
Accurate forecasting of inventory levels
17. CONTINUED…
Increased warehouse space
Estimated old stocks and maintained quality of goods
Bar coding and radio frequency technologies
Cross docking-to reduce inventory cost
Cut down labour cost and other handling cost involved
in loading and unloading
18. STRENGTH
Loyal customers
Great pricing
Good locations
Good benefits for full time employees
Wal-Mart appeals to mostly middle and lower economic clientele
Wal-mart competitive strength is their remarkable logistics
system.
19. CONTINUED.......
Walmart believed the logo of EDLP.
20% prices is lower than other stores.
Walmart not only targeted rural areas but it also
started in dealing with urban areas.
Technology of Walmart is very appreciable that it is
able to invest in to improve their company.