1. Wal-Mart is a Supply Chain Driven Company Obsessed With Lowering Costs... Is Yours? Michael Bergdahl, September 2011

2. Wal-Mart is a Supply Chain Driven Company Obsessed With Lowering Costs... Is Yours? Low Profit Business Model In-Stock Spoke and Hub Strategy IT Infrastructure Cross Docking Distribution Centers Private Fleet Ownership

3. Wal-Mart is a Supply Chain Driven Company Obsessed With Lowering Costs... Is Yours? Automated Replenishment Inventory Turnover Vendor Partnership Cost Control Strategy Culture of Cost Controllers

4. 2010 Sales = US418 billion 2010 Net Profit = 3.2% Total Profit = US$13.4 billion Supply Chain drives Walmart’s Low Margin Profitability Model

5. 120,000 products 60,000 Suppliers 8900 Stores 120 Distribution Centers Supply Chain drives Walmart’s Low Margin Profitability Model

6. Out of stock is out of business Supply Chain Goal = In-Stock

7. Walmart’s expansion strategy was controlled by its distribution strategy. Spoke and Hub Strategy

8. Largest privately owned IT systems in the world

9. Cross-docking distribution centers No Warehouses

10. 7000 privately owned truck fleet – largest in the USA

11. Automated Replenishment “Just in Time Inventory” Automated Replenishment “Just in Time Inventory” Wal-Mart’s inventory turnover goal for suppliers is 100% every 60 days

12. High velocity inventory turnover allows Walmart to make money on money! Walmart is Like a Bank...

13. Vendor Partnership Wal-Mart cuts out the middleman... Buys from the source!

14. Power of low priced products Many small retailers purchase inventory for their stores from Walmart’s shelves!

15. Wal-Mart’s relentless pursuit of low prices is: one part controlling expenses and one part buying at the lowest prices. Walmart passes expense savings along to its customers. Cost Control Strategy

16. The Wal-Mart Effect Wal-Mart’s low grocery prices save USA families of four US$3100 / yr

17. You Can Save Your Way to Prosperity Sam Walton was absolutely fanatical about controlling expenses

18. Culture of Cost Controllers Office Supplies Paper usage Overtime Budget No Headcount Increases Executive Travel Technology – Temperature of Stores

19. The Sam Walton Way Expense Control Standards Walmart gets its employees to manage expenses like they are writing the check from their personal checking accounts.

20. Every time Wal-Mart spends a dollar foolishly, it comes out of our customers' pockets. Sam Walton The Bottom Line:

21. Wal-Mart is a Supply Chain Driven Company that also has retail stores!

22. Questions ????????? Join My Walmart’s Best Practices LinkedIn Group @ www.michaelbergdahl.net