Wal-Mart Operations Management Analysis
INTRODUCTION
Wal-Mart Stores, Inc., the largest company in the world, has achieved leadership in the retail industry as a result of its efficient supply chain management practices. Setting record sales and earnings for fiscal year 2008, Wal-Mart’s total net sales were $374.5 billion, an 8.6 percent increase over the previous fiscal year and a record for any retailer.
Wal-Mart’s mission to ‘save people money so they can live better’ has impacted more than 176 million consumers in thirteen countries. A global company, Wal-Mart has positioned itself as the unbeatable price leader in offering a variety of affordable products that range from health and beauty, to apparel and jewelry to electronics and food items. While expansion, strategic acquisitions and emphasis on return on investment have propelled the company to retail stardom, the key driver to Wal-Mart’s success is its ability to move product from place to place quickly and efficiently. The exploration of Wal-Mart’s streamlined supply chain management practices provides insight into how the company uses Operations Management to continuously improve its competitiveness.
BACKGROUND
Wal-Mart was founded by Sam Walton in 1962 when he opened the company’s first discount store in Rogers, Arkansas. The company officially incorporated as Wal-Mart Stores Inc. on October 31, 1969. Today, Wal-Mart Stores, Inc. operates its Wal-Mart supercenters, discount stores, Neighborhood Markets and Sam’s Club warehouses in more than 4,100 facilities in the United States and more than 3,100 additional facilities in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom. Wal-Mart employs more than 2 million associates worldwide, including more than 1.4 million in the United States and is the largest private employer in the U.S. and Mexico and one of the largest in Canada. The company has also established operations in India
Wal-Mart Stores, Inc., the largest company in the world, has achieved leadership in the retail industry as a result of its efficient supply chain management practices. Setting record sales and earnings for fiscal year 2008, Wal-Mart’s total net sales were $374.5 billion, an 8.6 percent increase over the previous fiscal year and a record for any retailer.
Wal-Mart’s mission to ‘save people money so they can live better’ has impacted more than 176 million consumers in thirteen countries. A global company, Wal-Mart has positioned itself as the unbeatable price leader in offering a variety of affordable products that range from health and beauty, to apparel and jewelry to electronics and food items. While expansion, strategic acquisitions and emphasis on return on investment have propelled the company to retail stardom, the key driver to Wal-Mart’s success is its ability to move product from place to place quickly and efficiently. The exploration of Wal-Mart’s streamlined supply chain management practices provides insight into how the company uses Operations Management to continuously improve its competitiveness.
BACKGROUND
Wal-Mart was founded by Sam Walton in 1962 when he opened the company’s first discount store in Rogers, Arkansas. The company officially incorporated as Wal-Mart Stores Inc. on October 31, 1969. Today, Wal-Mart Stores, Inc. operates its Wal-Mart supercenters, discount stores, Neighborhood Markets and Sam’s Club warehouses in more than 4,100 facilities in the United States and more than 3,100 additional facilities in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom. Wal-Mart employs more than 2 million associates worldwide, including more than 1.4 million in the United States and is the largest private employer in the U.S. and Mexico and one of the largest in Canada. The company has also established operations in India
Bibliography: 1. http://money.cnn.com/magazines/fortune/global500/2008/full_list/ 2. Wal-Mart 2008 Annual Report 3. Walmartfacts.com May 2008 4. http://www.investopedia.com/articles/stocks/05/04405.asp 5. Krajewski, L. et al. Operations Management. 8th Edition. 2007 6. A.G. Lafley and Ram Charan. The Game-Changer. How You Can Drive Revenue and Profit Growth with Innovation. 2008 7. http://www.asaresearch.com/ecommerce/supplychain.htm