P E S INSTITUTE OF TECHNOLOGY
BANASHANKARI 3RD STAGE BANGALORE.
Term paper submission on
“SUPPLY CHAIN MANAGEMENT AT WALL-MART” -SUBMITTED BY SUJAY C 1PB12MBA51
INDEX
S.NO DESCRIPTION
1. INTRODUCTION TO SUPPLY CHAIN MANAGEMENT
2. LEVELS OF SUPPLY CHAIN MANAGEMENT
3. HISTORY-WALMART
4. WAL-MART INTRODUCTION AND ITS BUSINESS PROCESSES
5. SUPPLY CHAIN MANGEMENT AT WAL-MART
6. PROCUREMENT AND DISTRIBUTION
7. LOGISTICS MANAGEMENT
8. INVENTORY MANAGEMENT
9. COMPETITIVE ADVANTAGE AND BUSINESS MODELS
USED AT
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Air transportation is costly, but fast and reliable. Other modes of transportation may be cheaper, but the sacrifice has to hold inventories due to delays that may occur. If the above decisions are made with careful and strategic thought as well as with concern for integration, the supply chain should be efficient and successful.
The complete goal of SCM is to optimize supply chains in an endeavor to provide more accurate and time sensitive information that can be used to improve process times and cut costs. Supply chains have been around for decades and a constantly being improved. The newest opportunity for improvement is the introduction of Radio frequency identification (RFID) tags. RFID technology will provide real-time information that will allow manufacturers to get better readings of customers and markets thus further improving supply chains. RFID will help retailers provide the right products at the right places at the right times. Finally, maximizing sales and profits.
Wal-Mart has been leading the charge with RFID technology. Having the largest retailer adopt and begin to use RFID technology has given strong backing to the technology and will only further and quicken the expansion of RFID. They have begun requiring all their major suppliers to implement RFID technology on all products supplied to Wal-Mart.
One example of what Wal-Mart has done with SCM and its suppliers is that of its relationship with
In last week’s reading it states, “the primary goals of SCM are (1) to optimize service quality in terms of an organization’s internal information flow processes, while reducing costs and delivery time, and (2) to achieve increased efficiencies with regard to information flows and exchanges between the organization and its external parties, including all its vendors and suppliers” (Tann & Cobb, 2010, p. 72-73). Other elements of SCM is controlling redundancy, managing contracts, obtain products, maintain operational efficiency, order tracking, purchasing and inventory of supplies, and effectively communicating with suppliers and traders (Tann et al., 2010). There are many elements of a supply chain system, and
The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.
Reorders are placed at the time of review (T), and the safety stock that must be reordered is:
An ideal SCM integrates all aspects of logistics in a rapid manner attempting to achieve the objectives by using who, what, when, where, and why (the 5Ws) for accuracy and success. The focus of this literature will cover the history, functions, modifications and future of SCM, while also considering the literature and preceding research that was conducted in each area. This paper will enhance the readers’ understanding of the SCM in general along with the process and concepts of the subject. It will also enable readers to apply aspects of SCM in their respective line of business. The literature for this review is relative, ranging from one to three years old. Organizations must understand that Supply Chain Management can increase the company’s EBITA (Earnings Before Interest Taxes Amortization) or decrease it if used properly. An additional benefit of an optimal SCM is optimizing time from production to customer, which can increase customer base when the industry notice speed of delivery to customers.
The RFID system will open new sales opportunities to larger markets such as the Department of Defense (DoD) and Wal-Mart. Who are now demanding that RFID tracking as a condition of contracting.
Effective supply chain management can provide an important competitive advantage for a business marketer, resulting in improved communication and involvement among members of the chain, increased motivation, and decreased costs. Tracking the movement of and demand for components used to manufacture a product across a variety of potential and actual suppliers, provides insight and the ability to respond instantly to shortages, surpluses, and changes in market conditions. It seeks to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce cost.
McDonalds is one of the world’s leading fast food chain restaurants. It account for the total of over 30,000 restaurants in over 119 countries. All these McDonalds restaurants serve around 50 million people every day. There are ups and downs in every business. Every business has to face challenges over the time. Out of those challenges, one of the major challenges faced by McDonalds was supply chain management. Supply chain management involves creating a balance between minimising wastage as well as at the same time meeting customers’ needs. Wastage is reduced by two major steps:-
Walmart has expanded as the largest retailer since it opened doors over 50 years ago, incorporating various information technology systems into their supply chain and logistical operations. Walmart is known for being the first with new innovation by utilizing new information functions to increase profits. By implementing Radio Frequency
Walmart has a large retail seafood business and it is always a challenge to reduce cost and promote sustainability. With upward trend for the demand of sea-food, depletion of the seafood supply is inevitable unless Walmart have a deep engagement of their supply chain. One strategy that Walmart wants to promote to their suppliers is for all of them to take up the Marine Stewardship Council’s certification program. This process will be time consuming, expensive and complex. The depletion of some fish poses a threat to Walmart and its seafood supply chain.
Wal-Mart is known as a huge merchandiser company, and is known as the world’s largest retail store. It has “managed more than 11,100 stores in more than 27 countries to this very day, and has a huge market cap of more than 275 billion dollars”(http://marketrealist.com/2015/02/analyzing-walmart-worlds-largest-retailer/) , ranking amongst the top ten companies in the world. If that doesn’t throw you over the top, I don’t know what will! It is one of the only retailer stores that has a wide variety of items pertaining to their customers with items such as groceries, entertainment gadgets, pharmaceuticals, auto parts, hardware, home items, clothing, and many more. With that being said, Wal-Mart is a world-leading brand with its enterprise and
Home Depot (TheHomeDepot, n.d.) began as a two store operation in Atlanta, GA in 1979. The concept was the brainchild of Bernie Marcus and Arthur Blank, with inspiration from investment banker Ken Langone and well know merchandising expert Pat Farrah. They envisioned a one stop, do it yourself store that carried most of the products needed to do common home care projects.
Strengths of Wal-Mart include their ability to control operating costs, immediate restocking of shelves, and everyday low prices that they pass on to the consumer. Weakness of Wal-Mart includes the perception of crushing “mom and pop” stores in communities they enter and a lack of workers’ rights. These weakness are minor compared to their distinct advantages concerning cost, and are vigorously defended against. Wal-Mart’s bargaining power with suppliers is immeasurable. Whereas traditionally, retailers like Wal-Mart would make requests and wait for orders from suppliers, due to the sheer size and reach of Wal-Mart, they dictate to suppliers the terms, and often have increased clout concerning prices of units they wish to carry. Wal-Mart can make or break suppliers due to the reach they have with the American consumer. It is estimated that everyday one-third of Americans shop at Wal-Mart (Zimmerman 2008). Thanks in part to their dominance in the industry and
“Considering present market conditions and the way in which industry demand fluctuates nowadays, firms willing to remain operationally efficient will become more reliant on supply-chain management, This is one of the main reasons for which Wal-Mart has been capable of growing at an annual rate of 15.4%.”(Aleksandrov)
Supply chain management is a main process in all kinds of companies. That’s because an optimized supply chain results in lower costs and a faster production cycle.
Improvements in transportation process and technology enablement make available the most achievable way for most companies today to flush out supply chain costs and advance quality, reliability and customer satisfaction. Companies across nearly every industry sector are motivated to become supply chain management leaders. SCM leaders attain this rank in their markets by extensively dropping cycle times and operating expenses, increasing supply chain