WALMART WALMART 3 BACKGROUND Founded by Sam Walton
WALMART
WALMART
3 BACKGROUND ▸ Founded by Sam Walton ▸ Established in 1962 in Rogers, Arkansas ▸ 1967: 24 stores established ringing up $12. 7 million in sales ▸ 1970: Walmart first stock sold at $16. 50 a share ▸ 2009: Walmart reaches $400 billion in annual sales ▸ 2015: Doug Mc. Millon becomes CEO ▹ 2. 3 million workers ▹ 200 million customers per week ▹ 11, 000 stores ▹ Located in 27 countries
4 “Saving people money so they can live better”
5 EVERY DAY LOW PRICES
6 OPERATIONS MANAGEMENT 10 DECISIONS DESIGN OF GOODS AND SERVICES QUALITY MANAGEMENT LAYOUT DESIGN AND STRATEGY HUMAN RESOURCES AND JOB DESIGN SCHEDULING PROCESS AND CAPACITY DESIGN LOCATION STRATEGY SUPPLY CHAIN MANAGEMENT INVENTORY MANAGEMENT MAININTENCE
7 INFORMATION SYSTEMS
8 WALMART’S INFORMATION SYSTEMS ▸ FOCUS ON CUSTOMER RELATIONSHIP MANAGEMENT ▸ SET A CLEAR STRATEGY AND GOAL ▸ UNDERSTOOD THEIR CUSTOMERS
9 WALMART SUPPLY CHAIN MGT HUB-AND-SPOKE ● Goods kept in warehouse ● Assembled goods are dispatched to each spoke ● Walmart directly delivers 85% of inventory from its warehouse SUPPLY CHAIN MODEL EDI SYSTEM ● Enhances the control of fast moving consumer goods ● Tracks inventories ● Data recorded at all retail shops POS SYSTEM ● Transfer data through the internet ● Suppliers to monitor product sales ● Suppliers get real time information from store to store ● Increases efficiency at the supply chain
10 R F I D ● DESIGNED TO DEAL WITH THE ENTIRE PROCESS FROM PRODUCTION TO SALES ● TINY CHIP THAT COULD BE TRACKED BY RADIO FREQUENCY ● REPLACED THE BARCODE SYSTEM ● TAGGED EVERY ITEM ● EFFECTIVE INVENTORY TRACKING LINKING POS AND EDI SYSTEMS
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