SUPPLY CHAIN MANAGEMENT

ANDREA PEREIRA, KABIR BEDI, LUIZ FERNANDO, RAJAT, SYED SHOAIB IQBAL,
VIGNESHWARAN PERUMAL
AGENDA
 Introduction
 Inventory Management
 Procurement
 Demand Forecasting
 Customer Service Strategies
 Performance Measurement
 Warehousing and Storage
 Production Planning
 Transportation
 Technology
 Conclusion and Recommendations
WALMART- A BRIEF INTRODUCTION
 Walmart Inc. (formerly branded as Wal-
Mart Stores, Inc.) is an
American multinational
retail corporation that operates a chain
of hypermarkets, discount department
stores and grocery stores.
 Worlds largest public corporation by
revenue
 4th largest utility or commercial
employer
 The company's business model is based
on selling a wide variety of general
merchandise at low prices
 Largest grocery retailer in the US (20%)
 Largest toy seller in the US (22%)
 OUR POINT OF CONATCT

Mr. Jamie Gannet - Walmart Manager Vignesh – Walmart STAR Employee

 INVENTORY MANAGEMENT
 Walmart’s inventory management is a key success factor in firms ability to grow to its current position as world leading
retailer.
 Types of Inventory:
 Finished Goods Inventory
 Transit Inventory
 Buffer Inventory
 Anticipation Inventory
 Measures of Inventory Performance:
 Inventory Turnover
 Stock-out rate
 Inventory size
 Managing Inventory across Supply Chain
 ABC Analysis
 Inventory Information Systems
 Bullwhip Effect in Walmart’s Supply Chain
 PROCUREMENT
 The company then establishes strategic
partnerships with most of their vendors.
 Responsible Sourcing
 Walmart announced a plan to develop Global
Merchandising Centres (GMC’s).
 Cross docking products are routed from
suppliers to Walmart’s warehouses.
DEMAND FORECASTING
 Walmart uses universal product barcodes to collect and analyze store level
information.
 They use a Retail Link Database System to access Real Link database to forecast
demands to the supplier network. It displays real time data from cash registers and
to Walmarts distribution centres
 Vendor Managed Inventory (VMI)
 WALMART’S CUSTOMER SERVICE STRATEGIES
 Respect For the Individual
 Listen
Be Visible and Available, Collaborate with each other
and Open to feedbacks
 Lead BY example
Be humble, teach and trust each others to do their
jobs; give honest and Direct feedback
 Be More Inclusive
 Seek and Embrace the difference in people, Ideas and Experience.
 WALMART’S CUSTOMER SERVICE STRATEGIES
 Service to the customers
 Customers First
 Listen to, anticipate and serve customer wants and needs
 FRONTLINE FOCUSED
 Support and empower associates to serve customers everyday
 Innovation and Agile
 Be creative, take smart risks and moves with speed
 Strive for Excellence
 High Performance
 Set and achieve aggressive goals
 Accountable
 Take ownership, celebrate success
and responsible for results
 Calculative
 Make clear choices, anticipate changing
conditions and plan for the future
WALMART’S PERFORMANCE MEASUREMENT
 The criteria on which Walmart measures its
performance:
 Fulfilment: Availability of the product
 Fresh: Freshness of the perishable product
 Fast: Time taken to cash-out the customers
 Cleanliness: Degree of Cleanliness at
Walmart
 Order Pick-up: Time taken to deliver Pick-up
orders
 Friendliness: Associates chemistry with
Customers
 Functionality: Smoothness of Internal
Operations
WALMART'S PERFORMANCE MEASUREMENT

The criterion are measured

based on:
• Customer surveys
• Internal KPI’s
• Competitors
• Mystery Shoppers
• Products sold
• Customer Loyalty
PERFORMANCE MEASUREMENT

 Walmart has introduced the order online, pick

up in store concept, which actually entices
customers to buy something from the store they
didn’t even intend on when they come in.

 The criteria to measure this os based on:

 No. of packages received at the store

 Calls answered within three rings

 Orders dispensed within 5 minutes

WAREHOUSING AND STORAGE

 Walmart Warehouse uses Cross docking

 Walmart uses 3x2 stack up procedure
 All the perishable items and fast moving items are kept
in the lower levels
 Longer expiring date products are kept at the higher
level
 Frozen Foods are kept in freezer between -22 and -18°C
 Diary and fresh product are kept in cooler between 4
and 0°C
PRODUCTION PLANNING
 Production planning is collecting and acquiring all the facilities necessary.
 objectives. The planning includes
 1. Forecast Demand
 2. Determining potential options for production
 3. Choosing a resource for production which is eco friendly
 4. Self-access to the performance 5. Adjust
 TRANSPORTATION
 Approximately 6,000 trucks in the U.S. log millions of miles every
year, delivering products to thousands of locations across the country

 Doubled fleet efficiency by the end of 2015

 delivered 830 million more cases while driving 300 million fewer
miles an improvement of 84.2% over our 2005 baseline

 Effective driving techniques, such as minimizing idle time and

progressive shifting, to ensure optimal performance

 Advanced tractor-trailer technologies, such as electrification, light

weighting, improved aerodynamics and fuel-efficient tires

 Improved processes and systems to drive efficient loading and

routing of merchandise
TECHNOLOGY
 Walmart Pay was used for 45% of payments following the rollout, with 88% of
the transactions coming from repeat users
 Scan and Go :
 Self-serve checkout and Scan & Go technology is nothing new and has been
adopted by many supermarkets around the world.
 SmartLife:
 A revolutionary new way to manage in-store demonstrations, SmartLife allows
Walmart to assist customers with their technology-related queries.
TECHNOLOGY
 Endless Aisles
 Being tested in select stores, the endless aisle system aims to seamlessly integrate
the in-store and online shopping experiences. A kiosk placed at the end of a
physical aisle allows customers to access the online Walmart store.
 Call Buttons
 Walmart is even using digital technology to change the way customers ask for help.
New next-gen call buttons activate GPS-enabled devices worn by staff members
CONCLUSION AND RECOMMENDATIONS
 As Walmart, coming into online retail business, their inventory is not on par with
their competitor like Best Buy, Amazon and EBay
 In Walmart most of the goods does not get sold out, therefore more than 20% of the
inventory is thrown out. We recommend Just –in- Time inventory management
 As Walmart Already have implemented Direct-to-Customer Fulfilment, Now they
have started the online retail business. Therefore, they should set-up Ship-to-
Customer fulfilment.
 Walmart is mainly a brick and mortar store, but in modern time everything is
available in a click of button, they should concentrate and invest on their online
retail division and ramp-up the business.