Case Analysis: Supply Chain Management at Wal-Mart

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Wal-mart Stores Inc was the world’s largest retailer and was started by Sam Walton in 1962 who named it as “Wal-Mart Discount City”. However before Wal-mart; Sam Walton owned a number of Ben Franklin Store Chains. Due to this prior experience of owning smaller variety stores and dealing with its franchised supply chain, he learnt various business concepts and also was able to selectively purchase merchandise in bulk from new suppliers and then transport these goods to his stores directly. And then he realized a new trend of discount retailing which was based on driving high volumes of product through low cost retail outlets. He also started a new concept of “Everyday Low
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This system was estimated at 570 terabytes – which Wal-Mart claimed was bigger than all the fixed pages on the internet. This database is connected to Wal-Mart’s internal analysts who forecasts demand with suppliers, also it is connected to the supplier network which displays sales data in real time, and is directly connected to Wal-Mart’s distribution centres. The order in which the data is collected is from the store network, and then the sales data is collected at the cash registers, in which the information is simultaneously sent to the retail link database via global satellite transmission. This global satellite system and database has given Wal-Mart a large competitive advantage to other

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