1. Qurat Ul Ain Malik 21536 Sabir Wahab 20603
Wal-Mart
Qurat Ul Ain Malik 21536
Sabir Wahab 20603

2. INTRODUCTION
Walmart, an American multinational retail corporation that runs chains of large department and warehouse stores
Established 1962, Arkansan-USA
Sam Walton- Founder & Mike duke- current CEO
Successful due to its IT usage in SCM

3. Wal-Mart  known for innovative business practices
One of the first retailing companies to centralize distribution system.
Always among the front runners in employing IT to manage its supply chain processes.

4. INTRODUCED EDI FOR PROCUREMENT
Using EDI for procurement
EDI saved time and made procurement efficient.
Using the bar code scanners, an analysis of daily, weekly, monthly sales data helped the store manager determine what products were selling and at what quantity.
Accordingly, the store manager would place orders in the manufacturing division.
EDI=Electronic Data Interchange

5. AUTOMATED OPERATIONS
In 1977, Wal-Mart set up a computer terminal network (CTN) to establish a communication link between its stores and the company headquarters
Real time business operations
In 1978, Wal-Mart set up its first fully automated distribution center

7. Wal-Mart placed orders for huge quantities of goods with its suppliers
Cost of sales worked out to be 2-3 %(very low from industry average)
Information of product, manufacturer, price was recorded on computer system
That information was passed to centralized data warehouse

8. Analysis of daily, weekly, monthly sales data helped store manager to determine which products were sold in which quantities
So that they can place purchase order
Edi also helped suppliers
Right merchandize at the right time, and have it at right place at right price

9. WAREHOUSING
Using voice based technologies: Enhancing warehouse and logistics management
Wal-Mart could replenish stock at any of its stores in US within 24 hours
It enabled the company to receive goods and dispatch them to stores in less than a day

11. It installed voice based order filling(VOF) system in all distribution centers
Is consisted portable Voice Recognition Talkman Terminals(VRTT) and radio module on company’s wireless LAN
It eliminated mis-picks and product labeling costs since VOF didn’t require paper lists labor

12. GPS GPS system in communication in trucks Any truck can be located
Drivers could activate system by voice and interact with staff

13. INVENTORY MANAGEMENT
The Retail Link system- Supporting Inventory Management
Retail link connected EDI network to extranet ,accessible to all suppliers
Provided suppliers historical sales data of 24 months, allowed them to track invoice, can make demand forecast
Suppliers could also study competitors products demand

15. FORECASTING CPFR (Collaborative Planning Forecasting Replenishment)
Real time bases to determine product wise demand forecast
Wal-Mart shared past data, customer data, demographic data, stock positions
Both forecasted demand individually and then co-operated
Reduced inventory cost
Product availability across supply chain

17. As a result lead time was cut to 11 days from 21 days
On-hand inventory was reduced by two weeks
Sales grew by $8.5 millions in six months
Later on it was implemented to other stores

18. INITIATIVES
2001- Global Procurement Division[Shenzhen, China
Exchange of sales and inventory data
Best deal procurement from any part of world
Strategy Employed
Identify generic products
Enhance product quality
reduce cost by collaborating
2001- copy paper – increased sales
[ 46% in UK, 94% in Federal Republic of Germany, 38% in Canada, 25% in US]

19. October 2002- Asked suppliers to replace VAN-EDI to Web based EDI
Direct online communication between trading partners
No transaction costs
Highly secured
Saved millions[ VAN-EDI cost $200 Billion]
No licensing fees
July 2003 – Asked suppliers to place RFID tags on goods, packed in pallets and crates
VAN-EDI = Value Added Network-EDI
RFID = Radio Frequency Identification

20. BENEFITS Drastic decrease in Stock out situations
From $400 million to $1.2 billion for P&G
Lesser labor requirements
Almost $6.34 billion yearly
Decrease in merchandise thefts
Almost $2 billion
Real time tracking of consumption patterns
Would help enhance JIT Inventory management system
Decrease in stock levels by around 25%[IBM]
Total savings expected to be 8.34 billion per year