Submitted by : Rohit soni MBA 5th sem

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Management Information System

System that provides information needed to manage organizations effectively and efficiently. To improve the Management decision making By providing accurate and up-to-date information about the key aspects of organizational performance.
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History of Walmart
Sam Walton, a businessman from Arkansas, began his retail career when he started work on June 3, 1940. On July 2, 1962, Walton opened the first Walmart Discount City store located at 719 Walnut Ave. in Rogers Arkansas. This phenomenal growth of Walmart is attributed to its continued focus on customer needs and reducing cost through efficient supply chain management practices
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Hub and Spoke System

In the early 1970s, Walmart became one of the first retailing companies in the World to centralize its distribution system, pioneering the retail hub-and-spoke system Goods were centrally ordered, assembled at a massive warehouse, known as distribution center (hub), then dispatched to the individual stores (spoke). The hub and spoke system enabled Walmart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities; and Distributing them through its own logistics infrastructure to the retail stores spread across the U.S.

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Using EDI for Procurement

The computer systems of Walmart were connected to those of its suppliers through EDI. EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold. On receiving information about the sales of various products, the suppliers shipped the required goods to Walmarts distribution centers.

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Inventory Management
Walmart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. With the rapid expansion, it was essential to have a good communication system. Hence, Walmart set up its own satellite communication system in 1983. Instead of cutting the inventory across the board, Walmart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels.
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Inventory management
Employees at the stores had the Magic Wand, a hand-held computer which was linked to in-store terminals through a radio frequency network. These helped them to keep track of the inventory in stores, deliveries, and backup merchandise in stock at the distribution centers. Order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system. Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves.
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Voice-based Order Filling (VOF)

In 1998, Walmart installed a voice-based order filling (VOF) system in all its grocery distribution centers. Each person responsible for order picking was provided with a microphone/speaker headset, connected to the portable (VOF) system that could be worn on waist belt. They were guided by the voice to item locations in the distribution centers. The VOF system also verified quantities picked, and could respond to a variety of requests such as providing product detail (type, price, barcode number, etc.) By installing the VOF system, Walmart eliminated mispicks and product labeling costs since the system did not require paper lists and labels to be affixed on the goods.
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Retail link system

In 1991, Walmart had invested approximately $4 billion to build a retail link system. More than 10,000 Walmart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories. Details of daily transactions (~10 million per day) were processed through this system. Retail Link connected Walmarts EDI network with an extranet, accessible to Wal-Marts thousands of suppliers. The suppliers could find out how their product was performing against competitors products in a particular product category.

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Collaborative Planning, Replenishment (CPFR)

Forecasting and

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Collaborative Planning, Replenishment (CPFR)

Forecasting and

By the mid 1990s, Retail Link had emerged into an Internet-enabled SCM system whose functions were not confined to inventory management alone It also covered collaborative planning, forecasting and replenishment (CPFR). In CPFR, Walmart worked together with its key suppliers on a real-time basis by using the Internet to jointly determine product-wise demand forecast.

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CPFR: Hard to implement

Though CPFR was a promising supply chain initiative aimed at a mutually beneficial collaboration between Walmart and its suppliers , its actual implementation required huge investments in time and money A few suppliers with whom Walmart tried to implement CPFR complained that a significant amount of time had to be spent on developing forecasts and analyzing sales data

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VAN EDI to Web-EDI

In October 2002, Walmart asked its 14,000 suppliers to switch over from the existing Value Added Networks (VAN) EDI to web enabled EDI By implementing web-EDI, Walmart can save millions of dollars in the form of license fees to the private VANs

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VAN EDI v/s WEB EDI

VAN EDI
Transactions between the business partners are routed and managed through Private Value Added Networks. It takes time for the messages to be communicated between the trading partners. Transactions are not totally secure as they are routed through private players.

WEB EDI
Transactions between the business partners are routed through the internet. Direct online communication between the trading partners. Security of transactions is relatively high as the transactions are routed through a secured web server with a 128 bit end-end security.

Charge transaction fees from those As internet is accessible to all ,no who utilize the service. Transaction transaction fee is charged. costs are high. Powerpoint Templates Page 14

RFID Technology
(Radio Frequency Identification)
Wal-mart planned to replace bar-code technology with RFID technology. They believed that this replacement would reduce its supply chain management costs and enhance efficiency. Because of the implementation of RFID, employees were no longer required to physically scan the bar codes of goods entering the stores and distribution centers, saving labor cost and time. Wal-mart expected that RFID would reduce the instances of stock-outs at the stores.

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How RFID works

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CONCLUSION
Walmart has been able to efficiently USE and UPGRADE its IT tools , namely: 1. Web EDI 2. Hub and spoke system 3. Retail link system 4. VOF 5. CPFR 6. RFID Achieved EFFICIENCY and COST MINIMIZATION through MIS Implementation.

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Thank You

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