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Case study solution wal mart stores inc

Wal-mart employs more than 2. In 2007, Wal-mart became No. Walton's similar store in Versailles, Missouri in 1946. In 1962, Sam Walton started Wal-mart's first discount store, but faced stiff competition from Kmart and Target, opening only another 14 stores by the close of the decade.

Expansion became rapid in the 70s, however, to 276 stores in 11 states, when a public offering provided the necessary capital infusion.

By the 80s Wal-mart was one of the most successful retailers in America. The company acquired 122 Woolco stores from Woolworth, Canada in 1994, to become, three years later, the largest volume discount retailer in Canada and Mexico. By 2002, acquisitions in Germany, Brazil and South Korea had enabled Wal-mart to become the world's largest company in revenue terms. Not all ventures were successful, however: Walmart's Supply Chain Management Wal-mart is often credited with starting the practice of digitally sharing sales data with major suppliers, allowing the company to supply a wide range of products at the lowest cost and shortest delivery times.

Step 1 - Reading up Harvard Business Review Fundamentals on the Strategy & Execution

Wal-mart's supply chain management was not simply an IT system, however, but involved company control and efficiencies in every aspect of its operations. Negotiate large discounts with suppliers. Deal directly with manufacturers, eliminating middlemen markups. Insist on agreements prohibiting suppliers from underpricing to other customers. Achieve economies of scale. Wal-mart's policy was a virtuous circle for customers: Wal-mart suppliers' access to Wal-mart sales figures and to its technology encouraged openness of the part of suppliers too: Supply Chain Partnerships 1.

Amazon vs. Wal-Mart: The Retail Price Wars

Wal-mart could require timesaving devices from supplies, e. Wal-mart also has 126 distribution facilities outside the US that serve its international stores. Wal-mart distributes more of its 80,000 item products from its own warehouses than do its competitors, allowing replenishment to average 2 days rather than the usual 5 days of competitors.

Wal-mart delivery to warehouses is in standardized containers or pallets. Wal-mart employs advanced barcode technology. The devices fed that information into the central supply chain management system.

Walmart SWOT Analysis & Recommendations

The system is quicker, less open to error and eliminated unnecessary paperwork. Wal-mart runs its own fleet of delivery vehicles 3,500 trucks at one time. Drivers are subject to strict control and qualifications: Cross-docking ensures that orders placed at Wal-mart stores are monitored throughout their passage from warehouse to customer.

The system triggers automatic warehouse replenishment and so orders with suppliers. The whole process is customer-led.

Harvard Business Review Wal Mart Case Study

Wal-mart standardizes space and layout in its stores and warehouses. Warehouse are automatically replenished to optimal levels through continuous cooperation with suppliers.

Wal-Mart Stores, Inc. Case Study Analysis & Solution

Sums spent on these systems are considerable: Wal-mart has traditionally been a low salary payer. Basic training is given, but staff turnover at Wal-mart stores is high. Trade union membership is discouraged. Wal-mart has not always adapted to local market and service expectations. Extensions to Wal-mart's supply chain management retail applications from HP and Oracle, and contracts with the social networking company, Bazaarvoice have not brought anticipated benefits.

Wal-mart's online presence has fallen behind competitors like Amazon and Target. Wal-mart's systems may be victims of their initial success, i. Wal-mart has generally won its many court actions over alleged infringements of labor laws, pricing policies, health insurance and unfair competition, but arrival of a Wal-mart store is still seen as a mixed blessing: Points to Note 1.

Supply chain management here more a private industrial network requires changes throughout a company. Wal-mart's obsessive commitment to lowest prices. Continuing profitability of Wal-mart. Net income has risen steadily in the last five years. Provide a short history of Wal-mart.

What is the overall business aim of Wal-mart? How is this achieved? Describe the Wal-mart supply chain management system. Why has Wal-mart occasionally been less successful outside the USA? Sources and Further Reading Need the references and resources for further study? It includes extensive 3,000 references, plus text, tables and illustrations you can copy, and is formatted to provide comfortable sequential reading on screens as small as 7 inches.