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    Case Study Analysis of Wal-Mart'S Supply Chain

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    PRATTAYA DUTTA
    Wal-Mart has achieved success in retail through effective supply chain management. They procure goods directly from manufacturers and use barcode technology and handheld devices. Their distribution centers are serviced by over 3,500 owned trucks. Information technology also benefits Wal-Mart by enabling inventory management and accelerated logistics. Processes like cross-docking reduce handling and storage costs. This efficient supply chain management allows Wal-Mart to offer lower prices through reduced costs, maintaining a sustainable competitive advantage.

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    Case Study Analysis of Wal-Mart'S Supply Chain

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    PRATTAYA DUTTA
    97 views3 pages
    Wal-Mart has achieved success in retail through effective supply chain management. They procure goods directly from manufacturers and use barcode technology and handheld devices. Their distribution centers are serviced by over 3,500 owned trucks. Information technology also benefits Wal-Mart by enabling inventory management and accelerated logistics. Processes like cross-docking reduce handling and storage costs. This efficient supply chain management allows Wal-Mart to offer lower prices through reduced costs, maintaining a sustainable competitive advantage.

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    WALMART case

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    Wal-Mart has achieved success in retail through effective supply chain management. They procure goods directly from manufacturers and use barcode technology and handheld devices. Their distribution centers are serviced by over 3,500 owned trucks. Information technology also benefits Wal-Mart by enabling inventory management and accelerated logistics. Processes like cross-docking reduce handling and storage costs. This efficient supply chain management allows Wal-Mart to offer lower prices through reduced costs, maintaining a sustainable competitive advantage.

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    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    97 views3 pages

    Case Study Analysis of Wal-Mart'S Supply Chain

    Uploaded by

    PRATTAYA DUTTA
    Wal-Mart has achieved success in retail through effective supply chain management. They procure goods directly from manufacturers and use barcode technology and handheld devices. Their distribution centers are serviced by over 3,500 owned trucks. Information technology also benefits Wal-Mart by enabling inventory management and accelerated logistics. Processes like cross-docking reduce handling and storage costs. This efficient supply chain management allows Wal-Mart to offer lower prices through reduced costs, maintaining a sustainable competitive advantage.

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    CASE STUDY ANALYSIS OF WAL-MART’S

    SUPPLY CHAIN
    PRATTAYA DUTTA
    T23-A,
    PGDM2018043
    SEAT NO-46.
    1. Wal-Mart has been able to achieve respectable leadership in the retail industry
    because of its focus on supply chain management. Discuss in detail the
    distribution and logistics system adopted by Wal-Mart.
    Ans.: DISTRIBUTION SYSTEM
    o Procured goods directly from manufacturers.
    o Establish long  term relationship with vendors.
    o Barcode Technology.
    o Hand-Held computer system.
    LOGISTICS MANAGEMENT
    o Distribution centers were serviced by more than 3500 company owned trucks.
    o Hired only experienced drivers.
    o Drivers had to report their hours of service to a coordinator daily.
    o Private Fleet Driver Handbook.
    o Cross- Docking
    2. The use of innovative information technology tools had benefited Wal-Mart’s
    supply chain management. In the light of the above statement, briefly explain
    how IT benefited Wal-Mart’s logistics and inventory management.
    Ans.: (a) Information technologies benefit in Inventory management
    Satellite communication system.  Expansion of Wal-Mart stores in the US
     Wal-Mart set up its own SCS in 1983 (b) By using IT capabilities Wal-Mart check
    & make the availability of customer’s demand.
     Automated Reordering System.  Entered into collaboration with P & G 
    Maintaining the inventories in its stores  ARS as a link b/w P&G and all computers,
    stores & distribution channels
     Radio frequency system.  Proofs to be magic wand  Helps in keeping
    track of the inventory in stores
     Algorithm system to forecast exact quantities.  Centralized inventory data
    system  Bar Coding & fixed optical reader for efficient picking, receiving & proper
    inventory control & for physical counting of inventory.  Internet enabled
    technologies. (c) Information technologies benefit in logistic management
     Accelerated Delivery system  Various technologies made supply chain
    more convenient  Irrespective of geographical area
     Cross-docking  Make distribution process more efficient.  Finished
    goods directly supplied to customers from manufacturing plant.  Reduces handling
    & storage of finished goods.  Eliminating the role of distribution centers &stores. 
    By making effective use of computers in all its company’s operation, WalMart was
    successful in providing uninterrupted services to its customers, supplier, stock holders
    and trading partners.
    3. What were the supply chain management processes adopted by Wal-Mart and
    how far were they effective? Discuss.
    Ans.: (a) Procurement and Distribution:
    o Procured Directly from manufacturers.
    o Generally, preferred local and regional vendor and suppliers.
    o Use of barcode technology and hand held computer system. How it is effective?
    o Low price to customers.
    o Less cost effective.
    o Help supervisor to monitor their employees closely.
    o Help to satisfy customer need quickly.

    (b) Logistic Management


    o Use more than 3,500 trucks for transportation.
    o Hire only experienced driver.
    o Transfer from supply chain to demand chain.
    o Use five type of cross docking. How it is effective?
    o Goods picked directly from manufacturer.
    o Reduce the handling and storage charges.
    o
    (c) Inventory Management
    o Use of IT and Communication system.
    o Setup own satellite communication.
    o Collaboration with P&G.
    o Use of algorithm system and bar-coding system.
    o Tie-up with Atlas Commerce. How it is effective?
    o Help to communicate with stores.
    o Help to reduce unproductive inventory.
    o Help in Distribution of needed product.
    o Help in accurate distribution of goods
    4. What was the nature of benefits derived by Wal-Mart from the efficient supply chain
    management practices and how far it has continued to its sustainable competitive
    advantage? Explain.
    Ans.: The nature of benefits derived by Wal-Mart from the efficient supply chain
    management practices and how far it has continued to its sustainable competitive advantage
    are:
    o Low transportation cost (3% as compared to 5%)
    o Reduction in lead time (within 48 hours)
    o Wal-Mart can replenish the shelves four times faster than its competitors
    o Purchase huge quantities→ Good bargaining power (price variation) competitive
    price (higher discounts) benefit to consumers
    o Accurate forecasting of inventory levels
    o Increased warehouse space  Reduction in safety stock
    o Better working capital utilization  Elimination of old stocks and maintained quality
    of goods

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