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Wal-Marts Supply

Chain
Management
Practices

Using IT and Internet to


Manage Supply Chain

Introduction

Initial meetings held for


implementation of RFID.
Replacement of Bar
code technology.
Importance of RFID for
Wal-Mart.
Efficiency resulting in
Savings.
State-Of-The-Art Supply
Chain Management
Systems.

Brief History

Wal-Mart renowned for innovative business


practices.
Hub and Spoke system.
Managing supply chain processes using
Information Technology (IT).
Setting up of Computer Terminal Network
(CTN) and Electronic Data Interchange (EDI)
The Conveyor System.

Brief History (contd..)

Point-Of-Sale (POS) scanning system.


Electronic Purchase Order Management.
Satellite Communication System.
Increase in sales and stores.

Using IT in Supply
Chain Management

Employment of advanced IT tools.


Reducing total Supply Chain Management
costs.
Different Strategies used:
1. EDI for Procurement.
2. Voice Based Technologies Enhancing
warehouse and Logistics Management.
3. The Retail Link System Supporting
Inventory Management.

Using IT in Supply
Chain Management

1. Electronic Data
Interchange (EDI) for
Procurement:
What is EDI?
Negotiating Best
Prices.
Delivery system and
Analysis.
Planning purchases
and avoiding over
stocking.

Using IT in Supply
Chain Management

2. Voice based Technologies Enhancing


warehouse and Logistics Management:
Lower Shipping costs.
Cross Docking.
Voice based Order Filling System.
PDQ displays.
Advanced Tracking Systems.

Using IT in Supply
Chain Management

3. The Retail Link System Supporting Inventory


Management:
Advanced Inventory Management
Systems.
Uses of Retail Link.
Benefits of Retail Link.

CPFR

What is
Collaborative
Planning,
Forecasting and
Replenishment
(CPFR) ?
Steps Involved.
Benefits of CPFR.
Drawbacks of
CPFR.

Using Internet in
Supply Chain

Management

1. Implementing CPFR:
What happens in CPFR?
Projections and Forecasts.
Benefits of Implementing CPFR.
The Listerine Success.
Statistics.
Reluctant Suppliers?

Recent Supply Chain


Initiatives

Global Procurement.
Request-For-Quote (RFQ).
Global Sourcing.
VAN-EDI v/s WEB-EDI.

The Next Step RFID

What is RFID?
How does it Function?
After effects of RFID
implementation.
RFID profitable for
suppliers?

Questions

1. Analysts believed that Wal-Marts supply


chain management (SCM) practices were the
best in retailing industry. Discuss the unique
features of Wal-Marts SCM practices vis-`avis its competitors.
2. What Benefits will Wal-Mart reap by
implementing RFID technology in supply
chain processes? How can the company
overcome the reluctance shown by its
suppliers in implementing RFID.

Questions

3. Wal-Mart used IT comprehensively in managing all the


functions of the supply chain. Explain how the company
used IT in procurement, warehouse & logistics
management and inventory management. What
benefits did the company reap by using IT?
4. Wal-Mart used the Internet proactively to enhance the
efficiency of its supply chain. Comment on how WalMart used the internet in procurement and inventory
management. Briefly describe the process followed by
the company to implement CPFR. Why do you think the
company was not able to widen the supplier base
willing to implement CPFR.

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