MIS IN WALMART

Presented by;
Archa S
&
Shifa A Rasheed
Management information system
System that provide information needed to manage
organizations effectively and efficiently.

Objectives of MIS
To improve the management decision making
By providing accurate and up-to-date information about
the key aspects of the organizational performance
History of Wal-Mart
Founded by Sam Walton in 1962
Wal-Mart is an American
multinational retail corporation
that operates a chain of
hypermarkets , discount
department stores and grocery
stores.
More than 11500 stores under 65
banners in 28 countries.
Customers visit E- commerce
sites.
Employs 2.2 million associates
world wide, And 1.4 million in
the U.S alone.
Hub and Spoke system
Wal-Mart is the first retailing company that
centralized its distribution system
Goods are centrally ordered, assembled at a massive
warehouse, known as distribution center(hub), then
dispatched to the individual stores(spoke)
Helps to achieve cost advantage by centralized
purchasing of goods in large quantities and
distribution through own logistics infrastructure.
EDI for procurement
The computer system of Wal-Mart were connected to
their suppliers system.
Edi enable suppliers to download purchase order
along with store to store sale information regarding
their products
Receiving information about the sale of products
suppliers shipped required goods to distribution
center
Inventory management
Invested heavily in IT and communication systems to
effectively track sales and merchandise inventories in stores
across country.
Set up their own satellite system in 1983.
Reduce unproductive inventory, by allowing stores to manage
their own stocks.
Instead of cutting inventory, they made full use of IT
capabilities to make more availability of items that customers
want more.
“Magic wand”- hand held computer linked to in –store
terminal through RF networks, helps to keep track of the
inventory in stores, delivery, merchandise in stock etc.
“POS”- possible to monitor and track the sales and
merchandis stock level on the stores shelves.
Voice- based Order Filling(VOF)
Installed in 1998 in its all grocery distribution centers.
Each person responsible for order picking was
provided with microphone, speaker, headset
connected to VOF.
VOF system verified quantities picked and could
response to a variety of requests such as price, type,
barcode number etc.
This helps in eliminate mispicks and product labeling
cost.
Quick replenishment
Since the floor area of any Wal-Mart tore varied
between 40000-200000sq, movement of goods within
the store was an important part of logistics operations.
Made significant investments in IT to quickly locate
and replenish goods at the store.
Pretty Darn Quick displays
Company asked its customers to ship goods in store –
ready displays called PDQ displays.
Employees could directly replace the empty racks at the
store with fully packed racks, instead of refilling each
and every item at the rack.
Retail link system
In 1991, Wal-Mart invested $4billion to build a retail link system.
Details of daily transactions were processed in this system.
More than 10000 retail suppliers used the system to monitor the
sale of their goods at store and replenish inventories.
Retail link connected to EDI network, accessible to thousand of
suppliers.
Suppliers could find out how their products was performed against
competitors.
Massively Parallel Processor(MPP) computer system to track the
movement of goods and stock levels.
All information related to ales and inventories was passed through
an advanced satellite communication system.
Collaborative Planning, Forecasting and
Replenishment(CPFR)
Internet enables SCM system(RLS) were not confined to inventory
management alone, it also cover CPFR.
Worked together with its key suppliers on a real time basis by
using internet to jointly determine product-wise demand forecast.
It is defined as a business practice for business partners to share
forecast and result data through the internet, in order to reduce
inventory costs while at the same time, enhancing product
availability across the supply chain.
Its actual implementation required huge investment in time and
money.
Need more time for developing forecasts and analyzing sales data.
Web -EDI
In October 2002, 14000 suppliers switch over from the
existing VAN EDI to Web- EDI.
Transactions are routed through internet.
Direct communication between trading partners.
High security, because transactions are routed
through a secured web sever with 128 bit end-end
security.
No transaction fee is charged.
Radio Frequency Identification
technology(RFDI)
Wal-Mart replaced bar-code technology with RFDI
technology.
Reduce supply chain management costs and enhance
efficiency.
By the implementation of RFDI, employees were no
longer to scan the bar-codes of the goods entering the
stores and distribution centers, saving labor costs and
time.
Conclusion
Wal-Mart has been able to efficiently use and upgrade
its IT tools namely;
 EDI
 VOF
 CPFR
 RFDI
• Achieved efficiency and cost minimization.