walmark supply chain

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Wal-Mart supply chainwww.walmartstores.com

Professor: 何正得

Students : 楊氏良, 范氏紅, 阮德盛

Background Industry: Retailing Founded: 1962 Founder: Sam Walton Headquarter: Bentonville,

Arkansas, United StatesNumber of locations:

8,970 (2011) Area served: Worldwide Key people: S. Robson

Walton(Chairman)Mike Duke(President and CEO)

Background

Revenue: US$ 421.849 billion (2011) Operating income: US$ 25.542 billion

(2011)Net income: US$ 15.355 billion (2011) Total assets: US$ 180.663 billion (2011) Total equity: US$ 68.542 billion (2011 Employees: Approx. 2.1 million (2011) Top U.S. Retail Industry Corporations on the

2011 Fortune 500 ranks Wal-Mart: - 2010 Rank - 1 - 2009 Rank - 2 - 2008 Rank - 1

Mission

Wal-Mart's advertised mission statement and its advertising slogan are the same:

"We save people money so they can live better."

In addition to this mission statement, the company looks to its founder, Sam Walton for a company "purpose":

“If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.”

Supply chain overview

www.themegallery.comwww.themegallery.com Company LogoCompany Logo

Competitive and supply chain strategies

Wal-Mart’s competitive strategy is to be

reliable, low-cost retailer for a wide

variety of mass-consumption goods

Supply chain emphasize efficiency but

also maintain an adequate level of

responsiveness in term of product

availability.

SuppliersWal-Mart works hard to ensure that the

products on their shelves meet the uniqueneeds

Wal-Mart partners with thousands ofsuppliers in every merchandise category

Maintaining a diverse mix is the key to theirsuccess.

Wal-Mart outlines the steps a businessowner must take in order to become itssupplier

Providing supplier training program: Wal-Mart has begun a new Web-based trainingprogram for Chinese factories thatmanufacture products for its stores.

Suppliers

Wal-Mart provides some standards for their suppliers: Compliance with Laws Voluntary Labor Hiring and Employment Practices Compensation Freedom of Association and Collective bargaining Health and Safety Environment Gifts and Entertainment Conflicts of Interest Anti-Corruption Financial Integrity

Distribution Center

Having one of the largest private distribution

operations in the world.

Having more than 40 Regional Distribution Centers Wal-Mart was able to provide replenishment within 2

days against at least 5 days for competitor. The inventory turnover rate was very high, about

once every two weeks for most of the items They operate 24/7

There are also distribution centers for specific

product categories such as grocery, jewelry,

pharmacy, apparel/shoes

Distribution Center

Each DC’s size : 1 million square feet.

It was divided into different sections on the

basis of the quantity goods received

Inside each DC, more than five miles of

conveyor belts move over 9,000 different lines

of merchandise

Each DC supports between 75 and 100 stores

within a 250-mile radius Each DC had facilities for maintaining personal

hygiene such as shower bath and fitness center.

Distribution Center

Inventory management

Wal-Mart maintains an efficient supply chain by

keeping low levels of inventory

Wal-Mart pioneered cross-docking

They run an EOQ(Economic order quantity) system

where their demand rates are continuous, frequent,

and known

Wal-Mart manages an efficient JIT system

The Wal-Mart EPC(electronic product code) initiative,

launched in 2005, uses RFID solutions to track items

from manufacturer to distribution centers to its

stores.

Inventory management: RFID RFID is used to improve

product availability forWal-Mart customers.

Cases and pallets containingthe products will feature EPCswhen delivered to Wal-Mart’s regionaldistribution center.

RFID readers installed at dock doors willautomatically let Wal-Mart’s operations andmerchandising teams as well as suppliers knowthis exact shipment of products has arrived andis inside the building

Cases will then be removed from pallets andprocessed as usual through the distributioncenter.

Transportation

A Slow Boat from China Delivers Cars Toys to the U.S.

Trains transport the Containers to the Distribution Centers

Trucks also haul the Containers to Distribution Centers

Transportation

The retailer aims to take over U.S. transportationservices from suppliers in an effort to reduce the costof hauling goods

Wal-Mart will increase its use of contractors, as wellas its own vehicles, to pick up products directly frommanufacturers’ facilities.

Wal-Mart’s initiative to take over transportation fromits suppliers to its distribution centers and stores:Wal-Mart has a very large private fleet (6,500tractors and 55,000 trailers)

Wal-Mart supports one of the largest trucking fleetsin the United States with over 6650 trucks, 5400 dryvans, 3900 reefers and logs over 757 million milesannually

Transportation

Fleet Statistics

7,400 Drivers

6,537 Tractors

51,882 Dry Van Trailers

5,001Reefer Trailers

80,000 Associates in Logistics

124 Distribution Centers

713 Million Miles Driven in 2010

4 Million Total Store Deliveries Per Year

1.6 Million Miles Per Preventable Accident

Wal-Mart stores

Wal-Mart Stores serves customers and

members more than 200 million times per

week at more than 9,800 retail units under

69 different banners in 28 countries.

Wal-Mart builds retail stores only where the

demand is sufficient to justify having

several of supported by DC

Wal-Mart stores in US

Description Retail Units Entry

Supercenter 3,002Opened first in 1988 (Washington, MO)

Discount Store 647Opened first in 1962 (Rogers, AR)

Supermarkets* 192Opened first in 1998 (Bentonville, AR)

Small formats** 9Walmart U.S. 3,850

Sam's Club 610Opened first in 1983 (Midwest City, OK)

Total U.S. 4,460

Wal-Mart stores in US


Wal-Mart stores in other countries

Mexico 1,932 Entered November 1991Canada 329 Entered November 1994Brazil 496 Entered May 1995Argentina 67 Entered August 1995China*** 352 Entered August 1996United Kingdom 542 Entered July 1999Japan 415 Entered March 2002Costa Rica 194 Entered September 2005El Salvador 77 Entered September 2005Guatemala 188 Entered September 2005Honduras 62 Entered September 2005Nicaragua 67 Entered September 2005Chile 299 Entered January 2009India 9 Entered May 2009Africa**** 337 Entered June 2011 Walmart International 5,366Wal-Mart Stores, Inc. 9,826

Where in the World is Wal-Mart?


Supply chain issues

The company was tired to apply the same

standards it used in The United States with

local suppliers

Some local suppliers either refused to give

special discount or to sell products to Wal-

Mart

Some producers rejected delivery system;

they refused to send goods to Wal-Mart

distribution center

Conclusion

Wal-Mart 2011 annual report :

Every week around the world, Wal-

Mart’s 2.1 million associates work

diligently to help more than 200

million customers save money so they

can live better

Thank you very much!

walmark supply chain

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