Supply Chain Management - Walmart

Wal-Mart’s Supply Chain Management

MEMBERS

Presentation coverage

Some Walmart Facts

Global Presence

Supply Chain Management at Walmart

Walmart Supply Chain Flow Chart

Supply Chain elements at Walmart

Walmart – P&G channel partnership

SCM – enabled partnership in India

Supply Chain Management at Big Bazar

Inwarding Process at Warehouse

Outwarding Process at Warehouse

Unique Features in Big Bazar -Uniliver Partnership

Some Walmart Facts

Walmart averages a profit of $1.8 million every hour.

35 million people shop at Walmart every day, as

much as the population of Canada.

The Walton family is worth $150 billion.

Walmart’s top selling item in 2012 was the Banana.

90% of Americans live within 15 minutes of a Walmart.

Global Presence

It has over 11,000 stores in 27

countries, under a total 55

different banners. The company

operates under the Walmart

name in the US and Puerto Rico.

It operates in Mexico as Walmart

de México y Centroamérica, in

the United Kingdom as Asda, in

Japan as Seiyu, and in India as

Best Price. It has wholly owned

operations in Argentina, Brazil,

and Canada.

Source - http://en.wikipedia.org/wiki/Walmart

Supply Chain Management at

Walmart

Fewer Links in Supply Chain

Vendor Managed Inventory (VMI)

Strategic Vendor Partnerships

Cross Docking as inventory Tactic

Technology Universal Product Code bar codes

Retail Link

Information sharing with Partners

RFID tags

Source - http://blog.tradegecko.com/incredibly-successful-supply-chain-management-walmart/

Walmart Supply Chain Flow Chart

Manufacturer

Manufacturer

Manufacturer

Retail Store

Retail Store

Retail Store

Point of sale terminal

Satellite system

Bar code, RFID

Radio, headphone

Distribution center

Company Headquarter

Supply Chain elements at

Walmart

Some of the ways supply chain is managed at Walmart-

Minitrucks - Inside distribution centers equipped with headphone

Computer give direction to driver in voice.

Bar Code System - Pallets passed through conveyor belt are

scanned automatically and product codes are transferred to

centralized computer system

RFID - Use radio waves to identify objects, tags with microchip and antenna built in

Large Scale Satellite system - Link all of the stores to headquarter,

giving Wal-Mart’s central computer system real-time inventory data.

Continued…

Information Sharing - Open its databases, Retail Link privateextranet system : to see exactly how its products are selling andwhen it might need to up its production to give more than 2000suppliers computer access to point-of-sale data.

Walmart Advanced Vehicle Experience Concept Truck – It is thelatest in fleet efficiency program. The one-of-a-kind prototypeoffers a whole package of firsts. The trailer is made almostexclusively with carbon fibre, saving around 4,000 pounds, whichcan then be used to carry more freight.

Here is a small video for the same……

Walmart – P&G channel

partnership

Initial Drawbacks-

Adversarial Relationship - Wal-Mart did not like doing business with

P&G as they were too complicated and inflexible.

Transactional focus - P&G were obsessed by day by day selling, in

which success was that you got the order today and failure was

that you did not.

Main Objective – Only to push sales, irrespective of what the

customer needed, or was rewarded for. No testing or long term

planning.

Continued…Source - http://citebm.business.illinois.edu/IT_cases/Graen-Shaw-PG.pdf

Fragmented processes - Relationship and activities were

managed by the buying and selling function only.

An example of how that manufacturers and retailers integrate

into the supply chain as partners and build benefits for each other by reducing costs and improving service.

P&G installed the IT system Electronic Data Interchange (EDI),

recommended by Wal-Mart.

Management - Post Deal

Allowed Wal-Mart to get and share data, reducing the costs and

making higher profits.

Used the CRP to reduce the reorder cycle time.

Using these systems, P&G replenishes Walmart’s inventory.

This assists P&G in managing its inventory levels and ensures that

P&G products are in stock in Wal-Mart at all times.

SCM – enabled partnership in India

Source - http://articles.economictimes.indiatimes.com/2011-08-22/news/29915200_1_devendra-chawla-big-bazaar-future-group

Supply Chain Management at Big

Bazar

Big Bazar has partnership with many vendors out of which Unilever is one of the

biggest.

Procurement at big bazar happens from

Central Distribution Centre (CDC).

Local Vendors

The stock in the store is managed by Automated Replenishment System(ARS).

The CDC are located in such a strategically positioned so that it can easily caters

to the nearby Big Bazar.

Inwarding Process at Warehouse

PO generated by the ARS

Received by the vendor

Vendor delivers the Goods

IRN is issued by the warehouse management team

Stock Tally. If stock tally fails then discrepancy note is generated

GRN is issued

Stock is either piled in the warehouse or sent to the floor for sale

Outwarding Process at Warehouse

PO generated from stores to CDC

Raising of PO to the vendor by the CDC

Delivery of the stock to the CDC

Receiving of the stocks after weighing, counting and generation of IRN

Information is transferred to SAP

Generation of GRN

Stock piled stored in the warehouse of CDC

Outwarding of material from CDC

Receiving of goods at the Big Bazaar store

Unique Features in Big Bazar -

Uniliver Partnership

Sambandh Program - Sambandh program aims to foster an environment combining our strengths to create immense value for our supplier partners and in

turn, nurture mutual growth.

There are three main aspects of the Sambandh program:

Collaborating in business planning and management to ensure optimal growth

Leveraging Future Group resources and making life easier for you

Putting our strengths together to create a unique position in the marketplace

Continued…http://www.futuregroup.in/suppliers/suppliers-distributors.html

Success Story - Netway began manufacturing homecare products like toilet

cleaners, glass cleaners, utensil cleaners and hand-wash at its plant under

Future Group’s guidance with respect to quality and other product

specifications. With this association, Netway’s turnover saw exponential

growth in just three years. Netway is now growing at a brisk pace of 50% in

sync with Future Group’s growth.