Professional Documents
Culture Documents
Case 04
Name
Suryansh Kapoor Naved Siraj Nayan Jain Paritosh Baisoya Sumit Chandra Vikram Agarwal Vishesh Garg
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Introduction
Supply chain management is moving the right items to the right customer at the right time by the most efficient means. No one does that better than Walmart - Captain V L Beatty
Founded by Sam Walton in 1962 In 2012 it is the largest retailer in the world It has 8,500 stores in 15 countries, under 55
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Distribution Network
Hub and Spoke System
One of the first retailing companies in the world to centralize its distribution system, pioneering the retail hub-and-spoke system. Under the system, goods were centrally ordered, assembled at a massive warehouse, known as distribution center (hub), from where they were dispatched to the individual stores (spoke). 7/31/12
W alm arts Centralized Hub -andSpoke System of W arehouses and Distribution C enters
with store-to-store sales information relating to their products sold. the suppliers shipped the required goods to Wal-Marts distribution centers.
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RFID
RFID : Radio Frequency Identification
Automated Data collection based on an electronics not a barcode Tag can be imbedded in the product or stuck on the exterior case or pallet Reader instead of a barcode scanner Allows fully automated data collection with the use of portals Can read many ID tags at a time
Reduce the possibility of inventory shrinkage and out-of-stock situation. Improve fulfillment rates. Improve the customer service. Reduce inventory and labor cost. Eliminate many manual process and improve the operation efficiency
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Logistics Management
Fast & responsive transportation system Ships goods within 2 days, 3500 company owned trucks, replenishes store shelves twice every week Hired only experienced drivers who had driven more than 300,000 accident free miles with no major violation Private Fleet Handbook , maintained strict vigil over drivers Cross Docking , supply chain demand chain , push - pull
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Cross Docking
Finished goods were directly picked up from the manufacturing plant, sorted out and then directly supplied to the customers (virtually eliminating the role of the distribution centers and stores) Advantages of cross docking Reduces operating costs, inventory levels Increases throughput Helps in increase of sales space Eliminates unnecessary handling and storage of product Reduces product damages and product obsolescence
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CPFR
CPFR : Collaborative Planning, Forecasting and Replenishment By implementing CPFR, WalMart began a just-in-time delivery program that reduced costs for both the retailer and its suppliers Process for two or more companies in a supply chain to synchronize their demand forecasts into a single plan to meet customer demand Parties electronically exchange
past sales trend point-of-sale data on-hand inventory scheduled forecasts promotions &
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Inventory Management
Use of RFID technology and hand-held computer systems
RFID, Hand held computer system Own satellite communication system, Automated reordering system Point of sale system Sophisticated algorithm system Centralized inventory data system Retail link system Internet enabled technologies
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Hand Held computer guides an employee with regard to the location of a particular product from a particular place in the shop
Walmart IT systems
Inventory Tracking and Management System at distribution centers:
Identifies every product and its location in the warehouse Integrated with some 8.5 miles of laser-guided conveyor belts Lasers read the bar code on every product box and route them to appropriate loading dock
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Thank You
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