A

STUDY ON
WALL-MART SUPPLY CHAIN
MANAGEMENT STRATEGIES
Submitted by
• Smruti Sikha Behera,10DR023
• Megha Sehgal,10dr019
• Diptikanta Parida,10dr025
 SUPPLY CHAIN MANAGMENT
• Supply chain management can be defined as
an oversight of materials, information and
finances as they move in a process from
supplier to manufacturer to wholesaler to
retailer and finally to the consumer. The basic
aim of supply chain managements
coordinating and integrating the flow which
takes place within and among companies.
 The basic three types of supply chain
management flows are:
i. The product flow
ii. The information flow
iii. The finances flow

• The product flow deals with the goods and services that are
subjected to movement from a supplier to a customer and
vice-versa.
• The information flow manages the upgrading as well as
management relating to the status of the delivery process.
• The financial flow manages all
the finances related to the delivery process.
 INTRODUCTION:
• The worlds largest retailer Wal-Mart was founded by Sam
Walton in the year 1962
• Presently they are operating in fifteen
countries with more than 8,000 stores with 2.1 million
employees (Wal-Mart, 2010).
• Major features of Wal-Mart stores are its store area,
cleanliness and its shelves which is filled with varieties of
quality
• Wal-Mart is giving more emphasis for customer needs and
tried to reduce cost through the
effective usage of supply chain management system
 MANAGING THE SUPPLY CHAIN
• procurement and distribution
• Inventory management
• logistics management
 PROCUREMENT

• It always emphasized the need to reduce its

purchasing costs .
• procured goods directly from manufacturers,
bypassing all intermediaries.
• tough negotiator on prices- the products being
bought were not available elsewhere at a lower
price.
• Wal-Mart was able to provide replenishments
within one day.
 DISTRIBUTION
• Wal-Mart has around 120 distribution
centers around US.
• Goods meant for distribution within the
country arrived in pallets, while imported
goods arrived in re-usable boxes or cases.
• Some suppliers delivered goods directly
to the stores.
• 85% of the goods which were available at
the stores passed through the
distribution centers.
• Different barcodes are used to label
different products, shelves and bins in a
center.
 INVENTORY MANAGEMENT

• Wall mart used in IT and communications systems to

effectively track sales and merchandise inventories in stores.
• Wal-Mart has its own satellite communication system
• Had collaboration with P&G for maintaining the inventory in its
stores
• built an automated re-ordering system, which linked all
computers between P&G and its stores and other DC’s.
• The computer system at Wal-Mart stores identified an item
which was low in stock and sent a signal to P&G.
• The system then sent a re-supply order to the nearest P&G
factory through the satellite communication system
 LOGISTICS MANAGEMENT:

• The distribution centers are serviced by more than

3,500 company owned trucks.
• These dedicated truck fleets shipped goods from DC’s
to the stores within two days and replenish the store
shelves twice a week.
• Coordinators give information to the driver as to what
is the expected time of arrival or delivery of the goods
• There was a gap of two hours between unloading of
each trailer.
 Wal-Mart: A Leader in Logistics
• key driver in Wal-Mart's success
• technology, innovation and the commitment of our
associates.
• Wal-Mart Logistics has approximately:
85,000 associates
... 147 distribution centres
... 51 transportation offices
... 7,200 tractors
... 53,000 trailers
7,950 drivers
 BENEFITS REAPED
• Company efforts on capitalizing every cost
saving opportunities .
• Adding value.
• Benefits of low transportation cost.
• Faster replenishment of goods.
• Enjoyed more bargaining power
• Condition of stock out good was eliminated
 CONCLUSION
• Wal-Mart's vision had always been to increase
sales through lowering the costs through
organized distribution system with the help of
the Information Technology.
• Wal-Mart's focus has always been to sell goods
at a lower price to the customers.
• Wal-Mart with its power distribution system
made quite innovative changes like reducing
paper work, reduced its lead time drastically.