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Wal-Marts Supply Chain

By:
Tyler Abbott

Erich Finch
Nathan Lo

Jeremy Pawlinski
Ilse Reyes

Wal-Mart

Founded by Sam Walton in Roger,


AR in 1962
Expanded to over 17,000 retail
stores
Mission: We save people money
so they can live better
Vision: If we work together well
lower the cost of living for
everyonewell give the world an
opportunity to see what its like to
save and have a better life.
Sam Walton

Wal-Mart Supply Chain


Diagram

Suppliers

Manufacturing
Facilities

Physical
Product
Flow

Warehouses

Vendors
(Over 4,000.
I.e. Proctor and
Gamble, PepsiCo)

Distribution
Centers

(160)

Ecommerce
(Checks
Availability)

Retail
Stores
(Over
17,000)

Info and
Money
Flow

End
Customer
245
million a
week

Wal-Mart Procurement
Purchasing and Sourcing

Third party procurement?


Direct sourcing

Lowest possible price


Global Sourcing Centers

Wal-Marts Purchasing Power

High cost of business, High exposure

The use of EDI

Inventory Management

Wal-Mart has invested heavily in IT and communication systems to


effectively track sales and merchandise inventories in stores across the
country.

Magic Wand

Point -of- Sales (POS) system


Voice-based Order Filling (VOF)
Massively Parallel Processor (MPP)
Retail Link System

Manufacturing
Wal-Mart negotiates with the manufacturers to buy
merchandise at a low price

Made in America

Increase what we already buy of U.S. manufactured


goods

Source new to Wal-Mart U.S. manufactured goods


Re-shore the manufacturing of goods by facilitating
and accelerating efforts of suppliers

Wal-Marts use of store brands help save them money

Information Systems
Universal Product Code
Bar

Own satellite system


Retail Link

Transportation

Transportation Fleet

6,000 Trucks
Quality Drivers
Introducing
green
transportation

Logistics Facilities Network


Strategically located
distribution centers

Trucking fleet
Consolidation centers
Majority of goods
enters Wal-Marts network

Summary
How is Wal-Marts supply chain unique
Competition
Current and future challenges
Recommendations for improvement

Questions?

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