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Aadarsh oudyal

nabln Acharya
nlLlsh Man ShresLha
n18CuuC1Cn
W an Amerlcan publlc mulLlnaLlonal corporaLlon LhaL
runs chalns of large dlscounL deparLmenL sLores
and warehouse sLores
AccotJloq to lotbes Clobol 2000
W worlds 18Lh largesL publlc corporaLlon
W largesL publlc corporaLlon when ranked by revenue
W Lhe blggesL prlvaLe employer ln Lhe world wlLh over 2
mllllon employees
W largesL reLaller ln Lhe world
JalmarL has 8300 sLores ln 13 counLrles under 33 dlfferenL
names
W operaLes under lLs own name ln Lhe unlLed SLaLes lncludlng
Lhe 30 sLaLes and uerLo 8lco
ln Mexlco as Jalmex
ln Lhe unlLed klngdom as Asda
ln !apan as Selyu and
ln ndla as 8esL rlce
S1C8?
W Sam JalLon a buslnessman from Arkansas began hls reLall
career when he sLarLed work on !une 3 1940 aL a ! C
enney sLore ln ues Molnes owa where he remalned for 18
monLhs
W n 1943 he meL 8uLler 8roLhers a reglonal reLaller LhaL owned
a chaln of varleLy sLores called 8en lranklln and LhaL offered
hlm one ln newporL Arkansas
W JalLon was exLremely successful ln runnlng Lhe sLore ln newporL far
exceedlng expecLaLlons
W however when Lhe lease came up for renewal JalLon could nelLher come Lo
agreemenL on Lhe exlsLlng sLores lease renewal nor flnd a new locaLlon ln
newporL
W nsLead he opened a new 8en lranklln franchlse ln 8enLonvllle Arkansas
buL called lL JalLons llve and ulme
W 1here he achleved hlgher sales volume by marklng up sllghLly less Lhan mosL
compeLlLors
W Cn !uly 2 1962 JalLon opened Lhe flrsL JalMarL ulscounL
ClLy sLore locaLed aL 719 JalnuL Ave ln 8ogers Arkansas
W JlLhln flve years Lhe company expanded Lo 24 sLores
across Arkansas and reached $126 mllllon ln sales
W n 1968 lL opened lLs flrsL sLores ouLslde Arkansas
ln SlkesLon Mlssourl and Claremore Cklahoma
Supply Chaln
racLlces
hubandspoke sysLem
W n Lhe early 1970s JalMarL became one of Lhe
flrsL reLalllng companles ln Lhe world Lo cenLrallze
lLs dlsLrlbuLlon sysLem ploneerlng Lhe reLall hub
andspoke sysLem
W under Lhe sysLem goods were cenLrally ordered
assembled aL a masslve warehouse known as
'dlsLrlbuLlon cenLer' (hub from where Lhey were
dlspaLched Lo Lhe lndlvldual sLores (spoke)
hubandspoke sysLem
W 1he hub and spoke sysLem enabled JalMarL
Lo achleve slgnlflcanL cosL advanLages by Lhe
cenLrallzed purchas|ng of goods |n huge
quant|t|es
and dlsLrlbuLlng Lhem Lhrough lLs own |og|st|cs
|nfrastructure Lo Lhe reLall sLores spread across
Lhe uS
JalMarL's rocuremenL
W JalMarL emphaslzed Lhe need Lo reduce
purchaslng cosLs and offer Lhe besL prlce Lo Lhe
cusLomer
W 1he company d|rect|y procured from
manufacLurers by passlng all lnLermedlarles
JalMarL's rocuremenL
W JalMarL flnallzes a purchase deal only when
lL ls fully confldenL LhaL Lhe producLs belng
boughL |s not ava||ab|e e|se where at a |ower
pr|ce
uslng Lu for rocuremenL
W 1he compuLer sysLems of JalMarL were connecLed Lo
Lhose of lLs suppllers
W enabled Lhe suppllers Lo download purchase orders
along wlLh sLoreLosLore sales lnformaLlon relaLlng Lo
Lhelr producLs sold
W Cn recelvlng lnformaLlon abouL Lhe sales of varlous
producLs Lhe suppllers shlpped Lhe requlred goods Lo Jal
MarL's dlsLrlbuLlon cenLers
oglsLlcs ManagemenL
W An lmporLanL feaLure of JalMarL's loglsLlcs
lnfrasLrucLure was lLs fasL and responslve
LransporLaLlon sysLem
W 1he dlsLrlbuLlon cenLers were servlced by more
Lhan 3300 company owned Lrucks
Crossdocklng
W 1o make lLs dlsLrlbuLlon process more efflclenL JalMarL
also made use of a loglsLlcs Lechnlque called cross
docklng"
W n Lhls sysLem Lhe flnlshed goods were dlrecLly plcked up
from Lhe manufacLurlng planL sorLed ouL and Lhen
dlrecLly supplled Lo Lhe cusLomers
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nvenLory ManagemenL
W JalMarL lnvesLed heavlly ln 1 and communlcaLlon sysLems Lo
effecLlvely Lrack sales and merchandlse lnvenLorles ln sLores
across Lhe counLry
W JlLh Lhe rapld expanslon lL was essenLlal Lo have a good
communlcaLlon sysLem
W ence JalMarL seL up lLs own saLelllLe communlcaLlon
sysLem ln 1983
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nvenLory ManagemenL
W JalMarL was able Lo reduce unproducLlve lnvenLory by
allowlng sLores Lo manage Lhelr own sLocks reduc|ng pack
s|zes across many producL caLegorles and Llmely prlce
markdowns
W nsLead of cuLLlng Lhe lnvenLory across Lhe board JalMarL
made full use of lLs 1 capablllLles Lo make more lnvenLorles
avallable ln Lhe case of lLems LhaL customers wanted most
whlle reduclng Lhe overall lnvenLory levels
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;u|ck kep|en|shment
W Slnce Lhe floor area of any JalMarL sLore varled beLween
40000 Lo 200000 square feeL movemenL of goods
wlLhln Lhe sLore was an lmporLanL parL of loglsLlcs
operaLlons
W JalMarL made slgnlflcanL lnvesLmenLs ln 1 Lo qu|ck|y
locaLe and replenlsh goods aL Lhe sLores
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keta|| ||nk system
W n 1991 JalMarL had lnvesLed approxlmaLely $4 bllllon Lo
bulld a reta|| ||nk system
W More Lhan 10000 JalMarL reLall suppllers used Lhe reLall
llnk sysLem Lo monlLor Lhe sales of Lhelr goods aL sLores and
replenlsh lnvenLorles
W ueLalls of dally LransacLlons (10 mllllon per day) were
processed Lhrough Lhls sysLem
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keta|| ||nk system
W 8eLall lnk connecLed JalMarL's Lu neLwork wlLh
an exLraneL accesslble Lo JalMarL's Lhousands of
suppllers
W 1he suppllers could flnd ouL how Lhelr producL was
performlng vlsavls compeLlLors' producLs ln a
parLlcular producL caLegory
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vAn Lu vs JebLu
W n CcLober 2002 JalMarL asked lLs 14000 suppllers
Lo swlLch over from Lhe exlsLlng value Added
neLworks (vAn) Lu Lo web enabled Lu
W vAns rouLe and manage Lu messages for Lhelr
cusLomers
W 8y lmplemenLlng webLu JalMarL can save
mllllons of dollars ln Lhe form of llcense
fees Lo Lhe prlvaLe vAns

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