Walmart Case Study
SUPPLY CHAIN MANAGEMENT
Wal-Mart
Presented by:
• Nikita Agarwal • Rohit Deshpande • Shashi Shankar Singh • Swapnil Tatmute
Topics to be Covered:
• • • • • Background Facts Analysis Recommendations Conclusion
Introduction
Founder- Sam Walton, born in 1918 Alma mater-University of Missouri 1940 Worked –J.C.Penny First lesson-”Offering significant discount on product prices to expand volume and increase overall profits.” • Business growth 1) Pharmacy 2) Auto service center 3) Jewellery. • Time constraints• Expansion-in 1990, Joint venture with Cifra. • • • •
Increase in business (revenue)
• In 1979:- $ 1billion/ year • In 1991:-$ 1billion/ week • In 2001:-$ 1billio/1.5 day
Two factors 1) Highly automated distribution centers 2) Computerized inventory system
Background Note
• Why RFID over Bar Code? - believed that reduces SCM cost & enhances efficiency - expected to save $8.35B/year primarily through labor cost. • Centralized Distribution System - Pioneer of Hub & Spoke System • In 1970’s use of IT Bar code- Inventory tracking EDI- establishing direct link to store Satellite - co-ordinate all activities in SCM CTN(computer terminal network)-link between stores and headquarters • In 1983 POS(point of sale)-
Facts:
• Walmart has more employees- 2.1 million than 7 times the population of Iceland. • If Walmart's more than 900 million square feet of retail space were spread out over one place it would take up roughly 34 miles — about 1.5 times the size of Manhattan. • Walmart parking lots alone take up roughly the size of Tampa, Florida.
• In 2009, Walmart sold more bananas than any other item. • Each week, Walmart serves more than 200 million customers at more than 9,600 retail outlets in 28 countries. • China's exports to Walmart accounted for 11% of the growth of the total U.S. trade deficit with China between 2001 and 2006.
• An additional Walmart Supercenter per 100,000 residents increases average BMI by 0.25 units and the
Wal-Mart
Presented by:
• Nikita Agarwal • Rohit Deshpande • Shashi Shankar Singh • Swapnil Tatmute
Topics to be Covered:
• • • • • Background Facts Analysis Recommendations Conclusion
Introduction
Founder- Sam Walton, born in 1918 Alma mater-University of Missouri 1940 Worked –J.C.Penny First lesson-”Offering significant discount on product prices to expand volume and increase overall profits.” • Business growth 1) Pharmacy 2) Auto service center 3) Jewellery. • Time constraints• Expansion-in 1990, Joint venture with Cifra. • • • •
Increase in business (revenue)
• In 1979:- $ 1billion/ year • In 1991:-$ 1billion/ week • In 2001:-$ 1billio/1.5 day
Two factors 1) Highly automated distribution centers 2) Computerized inventory system
Background Note
• Why RFID over Bar Code? - believed that reduces SCM cost & enhances efficiency - expected to save $8.35B/year primarily through labor cost. • Centralized Distribution System - Pioneer of Hub & Spoke System • In 1970’s use of IT Bar code- Inventory tracking EDI- establishing direct link to store Satellite - co-ordinate all activities in SCM CTN(computer terminal network)-link between stores and headquarters • In 1983 POS(point of sale)-
Facts:
• Walmart has more employees- 2.1 million than 7 times the population of Iceland. • If Walmart's more than 900 million square feet of retail space were spread out over one place it would take up roughly 34 miles — about 1.5 times the size of Manhattan. • Walmart parking lots alone take up roughly the size of Tampa, Florida.
• In 2009, Walmart sold more bananas than any other item. • Each week, Walmart serves more than 200 million customers at more than 9,600 retail outlets in 28 countries. • China's exports to Walmart accounted for 11% of the growth of the total U.S. trade deficit with China between 2001 and 2006.
• An additional Walmart Supercenter per 100,000 residents increases average BMI by 0.25 units and the