Practical Networking in the Modern Business Environment

In addition, Metro estimated that with the increased accuracy of the cases shipped to the stores it would greatly reduce if not eliminate the need to send product back to the DC or worse, throw it out. Another beneficiary of the RFID tagging at the case level would be restocking at the stores. Due to the lag between products being received in the stock room in the mornings and the sales floor being restocked at night, the chances that the store would be under stocked were great. Using an RFID reader in conjunction with point of sale data, the store personnel would easily track inventory levels and restock more efficiently. The restocking efficiency was estimated to boost gross sales by .05% which would result in an increase in gross profit of €.05 per additional product sold.

In 2004, Target announced to their suppliers that they were going to perform a trial on the effects of radio frequency identification (which is also used at Wal-Mart) on the efficiency of supply chain management. This trial included a distribution center and ten nearby Target stores. The RFID tags were placed on the bar codes of pallets and cartons to track the goods from the suppliers to the distribution center, and from the distribution center to the stores. This system was used for five years

RFID systems are currently being used in manufacturing plants to track parts, stay informed of work in progress, reduce product defects, increase throughput, and manage production of given products. Big name retailers such as Best Buy, Metro, Target, Albertson’s, Hewlett Packard, and Wal-Mart are leading the way in implementing RFID systems. These retailers recognize the need to improve inventory efficiency, ensure products are available to customers as needed, decrease theft, and cut down on costs associated with tracking and processing inventory.

Wal-Mart uses a wide range of technology. When a company fails to recognize the importance of technology, the company runs the risk of being overtaken by competition. It uses a merchandise scanning system that let the managers or employees know if the stock on a shelf is getting low so they can be responsive to consumers’ buying habits, and make sure the items they are looking for are there for them (Solman, 2004). Another recent technology that Wal-Mart has implemented is self-checkout registers. This technology has made it easier and faster for consumers. Instead of waiting in long lines, they can just check themselves out and save some time. As this technology replaces employees, Wal-Mart can save the money that they paid to their cashiers. This could

From the annual reports we can conclude that Wal-Mart operates its stores as mass discount retailers, carrying between 60,000 and 90,000 different merchandise items in each store. Wal-Mart purchases more than $22 billion in merchandise, turning its inventory over as often as 4.5 times per year. Sam Club carries between 3,500 and 5,000 different merchandise items, acquiring more than $2.6 billion in merchandise. Wal Marts operations grew from 2003 to 2005. For example, the number of Wal-Mart stores increased and the number of Sam's stores increased. WalMart utilized an extensive distribution and tracking system to maintain optimal inventories at each store. They use the retail last-in, first-out (LIFO) inventory accounting method for the

Radio Frequency Identification Devices (RFID) have been used in the retail industry for more than fifty years as an inventory assessment application tracking product sales and distribution data for goods and services. Current trends of RFID for this industry have been favorable for hi-tech state-of-the-art industries, yet in the past years to 2014 device prices have fallen at an estimated average annual 5.3% primarily due to its characteristic as a "throwaway" inventory or control device. This market segment uses tags or labels, which are scanned and ultimately leave the store with the consumer, eventually disposing of the empty carton or used product. Retailer’s using this application method require multiple components and suppliers are

Department of Management Services (DMS) has chosen to expand their applications and services via TCP/IP and Internet access. DMS uses a widely used proprietary scheme: IBM’s Systems Network Architecture (SNA) which provides support for TCP/IP (Transmission Control Protocol/Internet Protocol). SNA architecture is projected to remain important for some years to come. Implementing standardized protocol architectures allow DMS ongoing communication with suppliers,

Walmart was founded in 1962 and by 1990’s grew into the biggest retailer in the United States. Many business organizations such as Walmart invest heavily in information systems to achieve the following strategic business objectives: operational excellence; new products, services, and business models; customer and supplier intimacy; improved decision-making, competitive advantage; and survival. Successful attainment of these objectives aids company in implementing corporate strategies and achieving its goals.

4. Relations with Suppliers- Wal-Mart has in place a system that helps to achieve their goal of lower prices. This Information Technology system includes computers, networking, and internet that cuts inventories and waste and helps with speedy delivery. This system also helps Wal-Mart to keep in constant contact with suppliers by transferring the data that suppliers need so they know what Wal-Mart needs. Wal-Mart also works with suppliers to improve their production and squeezes the best prices out of its supplier. The video referred to Wal-Mart as the customer’s agent. All of this focus Wal-Mart puts on suppliers reduces costs and lowers prices. Wal-Mart’s technological/logistical leadership remains unmatched by competitors (Web, 2005).

They are also able to learn which products work in a particular market and which do not by having robust information system technology. Walmart uses a system called Retail Link which tracks inventory, buying trends, and orders more products. An AMR report ranked Walmart as having the seventh best supply chain in the country. Tesco, Walmart’s competitor, was another retailer mentioned, and it ranked number fifteen (Flatknowledge). The size of Walmart permits them to be able to test many different designs, products, and services, without risking too much sales or profit.

Wal-Mart use telecommunications to link directly from their stores to their central computer system and from that system to its supplier’s computers. This allows automatic reordering and better coordination. Knowing exactly what is selling well and coordinating closely with suppliers permits Wal-Mart to tie up less money in inventory than many of their competitors.

Another decision that demonstrates Wal*Mart’s commitment to the future is their unyielding emphasis on superior information technology. Beginning in 1983 and standard by 1988, electronic scanning of Uniform Product Codes was installed in Wal*Mart stores. This and similar programs were effective in ensuring accurate pricing and reducing shrinkage, yet Kmart recognized its importance as well, and by 1990, had similar systems in place in its stores as well. Secondly, a $700 million investment in satellite systems made communication between headquarters, distribution centers, and stores much more effective. With this in place, sales data

A few reasons as to why Wal-Mart became a leader in the retail industry is due to their practices in obtaining competitive advantage by offering the lowest prices for the market. Wal-Mart built their practices by giving suppliers transparency to meet the demand of customers and granting them long-term relationships by purchasing goods in bulks. In addition, their turn times on inventory are three-five days faster than regular competitors. The inventory shelves are similar to Honda since they only hold up to four hours of inventory in their manufacturing site. Also, Wal-Mart holds their own transportation which is why they can manage their costs efficiently for the company. Their transportations system constitutes links between suppliers, distribution centers and retail stores. They have restrictive criteria for drivers where in order for them to be hired they would have to be accident free for a consistency of minimum 300,000 miles accident free. The supply chain practice that they have gained since they began the business was strategically faster and cheaper than all competitors. 85% of Walmart’s inventory is taken care of by their own transportation system and only about fifteen percent is taken care of by the suppliers through cross-docking. Wal-Mart uses

In order to succeed today, organizations that are competing in global markets are increasing rapidly. The increased use of technologies such as the Internet, intranets, and extranets will definitely revolutionize how businesses will operate and how they will use computers to compete. The Internet and related technologies and applications have changed the ways companies operate their businesses processes and activities. For example, companies can network their offices and share data to be more effective and efficient. However, excessive use of the Internet, intranets, and extranets also create intense

Wal-Mart Stores Inc., created by the business tycoon Sam Walton, is a giant corporation providing retail services to the American population. From hypermarkets, to regular grocery stores, Wal-Mart has been able to open its doors to even the remotest location in USA. With many competitors lagging behind such as Target, Alders, Kmart, and Costco, Wal-Mart has been able to maintain the lead in the retail market. As a matter of fact, as a competitive tactic, Wal-Mart focuses on maintaining lower prices with their motto being ‘Everyday Low Prices’.