Supply Chain at Walmart
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Transcript of Supply Chain at Walmart
8/10/2019 Supply Chain at Walmart
http://slidepdf.com/reader/full/supply-chain-at-walmart 1/11
ATIN MEHRA
140103039
8/10/2019 Supply Chain at Walmart
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Reduce the level of growth of holding inventoryto half the value of sales growth
Retain competitive advantage over industry
competitors
Worked to reduce cost of operations by:◦ Lower Labor Cost
◦ Improved supply chain
◦ Better logistics
◦ Improved technology to increase efficiency◦ Better inventory management
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• EDLP: Everyday low price
• Effective use of logistics management
• Effective inventory control
• Bargaining power over suppliers
• Global Expansion for new market opportunity
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Better Stakeholder Relationships◦ Strengthening relationships with customers, suppliers and employees by
passing on the savings on cost to them and thereby adding value.
Benefits of own transportation system
◦ Low transportation costs (3% against competitors’ 5%) ◦ Faster delivery to stores (with in 48 hours) and faster replenishment than
competitors (4 times)
Benefits of pricing strategy◦ Low pricing with day-to-day variations coupled with higher discounts than
competitors
◦ Good bargaining power because of purchasing huge quantities
◦ Good revenues in terms of higher and consistent sales volumes
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Lowerinventories
Higher
productivity
Greater agility
Greatercustomer
loyalty
Shorter leadtimes
Higher profits
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Automated Data collection based on an electronics – not a barcode
Tag can be imbedded in the product or stuck on the exterior
case or pallet
Reader instead of a barcode scanner
Allows fully automated data collection with the use of portals
Can read many ID tags at a time
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16% reduction in product stockout sinceadoption of RFID
RFID equipped shops are 63% more efficient
in replenishing out-of-stock items
Out-of-stock items are replenished 3 timesfaster with RFID
Cost of excess inventory was reduced bymore than 10%
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RFID technology which was introduced and pioneered byWALMART is being used across Indian industries such as:
◦ Pantaloon has piloted an RFID project at one of its warehouses for fewapparel lines
◦ Used in supermarkets for tracking of goods and security from pilferage as
it lets out an alarm at the exit door if not billed properly
◦ Air India is planning to use RFID for tracking capital assets
◦ Leading oil companies have begun pilot tests to use RFID for LPG cylindertracking
◦ The Indian railways is also thinking on these lines for tracking wagons andcontainers
◦ Maruti Udyog Limited has been using RFIDs for component and spareparts tracking for some time now at their Gurgaon plant