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  • GROUP 1 Wal-Mart Value Chain

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    The document outlines Walmart's value chain and key business activities. It discusses Walmart's focus on low prices through procurement from suppliers at attractive prices. It also discusses Walmart's logistics network of distribution centers that allow for inventory to be replenished and delivered to stores within 48 hours. The document also notes Walmart's investment in IT systems to track sales, inventory, and account for purchases in order to gain efficiencies throughout the value chain.

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    The document outlines Walmart's value chain and key business activities. It discusses Walmart's focus on low prices through procurement from suppliers at attractive prices. It also discusses Walmart's logistics network of distribution centers that allow for inventory to be replenished and delivered to stores within 48 hours. The document also notes Walmart's investment in IT systems to track sales, inventory, and account for purchases in order to gain efficiencies throughout the value chain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    127 views3 pages

    GROUP 1 Wal-Mart Value Chain

    Uploaded by

    pkvenu
    The document outlines Walmart's value chain and key business activities. It discusses Walmart's focus on low prices through procurement from suppliers at attractive prices. It also discusses Walmart's logistics network of distribution centers that allow for inventory to be replenished and delivered to stores within 48 hours. The document also notes Walmart's investment in IT systems to track sales, inventory, and account for purchases in order to gain efficiencies throughout the value chain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 3

    Wal-Mart Value Chain

    Firm Infrastructure Human Resources


    Operations
    Outbound Logistics

    IT Support

    Administration

    Marketing
    Marketing Lower Prices

    Merchandise Stocking

    Procurement

    Inventory

    Sales

    Brand Awareness

    Warehouse Locations Suppliers Inbound Logistics

    Low Cost

    Customer Service

    Strategy Elements

    Wal-Mart Value Chain

    Human Resources Mgmt.


    Manufa ctures

    promotions

    Customers

    Suppliers

    Logistics
    (Inventory Mgmt.)

    Distribution Centers

    Merchandising

    Return inventory Outbound

    Replenishment inventory Inbound

    Customer service
    advertisements

    PAWANS NOTES (NEED TO EMBED INTO PROCESS)


    Value Created Buy in volume at attractive prices Inventory control Expedite Deliveries

    Less than 48 hrs Delivery and Back haul Distribution Network More Capital Upscale look Specialty Departments Computerized system to track sales and for accounting purpose. Satellite system Easy real time communication to head quarters and cap phone costs UPC at point of sale Speed checkouts, bypass, paperwork and audits. Increased store size More store space and increased efficiency of stored trucks Advertising Expenditure News papers, TV and circulars Terms of Sale No questions asked return policy and credit transactions. Computer Aided design Merchandise Mix for each store based on various factors. 100,000 Employee Salaries We Care about our people and reducing shrinkage to 1.3% of sales. Administrative Cost Regional vice presidents flown to stores Warehouse clubs Sams Value Creating Activities by Percentage (As of 1985) club diversification

    Value Creating Activities Store merchandise in distribution center Centralized purchasing (in store terminal and central computer). Central computer linked to several hundred vendors Hub and Spoke distribution network Inbound logistics Leasing cost Store renovation Licensing fee Computerized System in each store

    Inbound Logistics 4.0% Operating Expense (Building Rentals) 1.8% Licensing 0.2% Marketing 1.1% Shrinkage 1.3% Salary Wages 10.1 % Cogs (approx 74%) (Average cost by sales for 5 years).

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