MIS in

GROUP-5
Sreedhar G.
Mayank Tripathi
Poonam Khaitan
Shivam Mehrotra
Shaurya Vikram SinghPowerpoint Templates
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Management Information System

System that provides information needed

to manage organizations effectively and
efficiently.

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Objectives of MIS

To improve the Management decision

making
By providing accurate and up-to-date
information about the key aspects of
organizational performance.

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Applications

ERP(Enterprise Resource Planning)

SCM(Supply Chain Management)
CRM(Customer Relationship
Management)
KMS(Knowledge Management System)

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History of Walmart
Sam Walton, a businessman from
Arkansas, began his retail career when he
started work on June 3, 1940.
On July 2, 1962, Walton opened the first
Walmart Discount City store located at
719 Walnut Ave. in Rogers Arkansas.
Has undergone several changes in its
image(specifically logos)

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 This phenomenal growth of Walmart is
attributed to its continued focus on
customer needs and reducing cost
through efficient supply chain
management practices

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Hub and Spoke System

In the early 1970s, Walmart became one

of the first retailing companies in the
world to centralize its distribution system,
pioneering the retail hub-and-spoke
system
Goods were centrally ordered, assembled
at a massive warehouse, known as
distribution center (hub), then dispatched
to the individual stores (spoke).
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 The hub and spoke system enabled
Walmart to achieve significant cost
advantages by the centralized
purchasing of goods in huge
quantities; and
distributing them through its own logistics
infrastructure to the retail stores spread
across the U.S.

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Walmarts Procurement

The need to reduce purchasing costs and

offer the best price to the customer.
The company directly procured from
manufacturers, by passing all
intermediaries.
Walmart finalizes a purchase deal only
when it is fully confident that the products
being bought is not available else where
at a lower price.
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 Walmart spends a significant amount
of time meeting vendors and
understanding their cost structure.
By making the process transparent, the
retailer can be certain that the
manufacturers are doing their best to cut
down costs.

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Using EDI for Procurement
The computer systems of Walmart were
connected to those of its suppliers.
EDI enabled the suppliers to download
purchase orders along with store-to-store
sales information relating to their products
sold.
On receiving information about the sales
of various products, the suppliers shipped
the required goods to Walmarts
distribution centers.
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Inventory Management

Walmart invested heavily in IT and

communication systems to effectively
track sales and merchandise inventories in
stores across the country.
With the rapid expansion, it was essential
to have a good communication system.
Hence, Walmart set up its own satellite
communication system in 1983.

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 Walmart was able to reduce unproductive
inventory by allowing stores to manage their
own stocks, reducing pack sizes across many
product categories, and timely price markdowns.

Instead of cutting the inventory across the

board, Walmart made full use of its IT
capabilities to make more inventories available
in the case of items that customers wanted
most, while reducing the overall inventory
levels.
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 Employees at the stores had the
Magic Wand, a hand-held computer
which was linked to in-store terminals
through a radio frequency network.

These helped them to keep track of the

inventory in stores, deliveries, and backup
merchandise in stock at the distribution
centers.

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 Order management and store
replenishment of goods were entirely
executed with the help of computers
through the Point-of-Sales (POS) system.

Through this system, it was possible to

monitor and track the sales and
merchandise stock levels on the store
shelves.

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Voice-based Order Filling (VOF)
In 1998, Walmart installed a voice-based
order filling (VOF) system in all its grocery
distribution centers.
Each person responsible for order picking
was provided with a microphone/speaker
headset, connected to the portable (VOF)
system that could be worn on waist belt.
They were guided by the voice to item
locations in the distribution centers.
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 The VOF system also verified quantities
picked, and could respond to a variety
of requests such as providing product detail
(type, price, barcode number, etc.)

By installing the VOF system, Walmart

eliminated mispicks and product labeling
costs since the system did not require paper
lists and labels to be affixed on the goods.

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Quick Replenishment

Since the floor area of any Walmart

store varied between 40,000 to 200,000
square feet, movement of goods within the
store was an important part of logistics
operations.

Walmart made significant investments in

IT to quickly locate and replenish goods
at the stores.
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Pretty Darn Quick displays

The company asked its suppliers to ship goods in

store-ready displays called pretty darn quick (PDQ)
displays.
Goods were packed in PDQ displays that arrived at
the stores ready to be boarded on the racks.
Walmarts employees could directly replace the
empty racks at the stores with fully packed racks,
instead of refilling each and every item at the racks.

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Retail link system

In 1991, Walmart had invested

approximately $4 billion to build a retail
link system.
More than 10,000 Walmart retail suppliers
used the retail link system to monitor the
sales of their goods at stores and
replenish inventories.
Details of daily transactions (~10 million
per day) were processed through this
system.
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 Retail Link connected Walmarts EDI
network with an extranet, accessible to
Wal-Marts thousands of suppliers.

The suppliers could find out how their

product was performing against
competitors products in a particular
product category.

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 Walmart owned the largest and most
sophisticated computer system in the
private sector.

The company used Massively Parallel

Processor (MPP) computer system to track
the movement of goods and stock levels.

All information related to sales and

inventories was passed on through an
advanced satellite communication system.
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Collaborative Planning,
Forecasting and Replenishment
(CPFR)

By the mid 1990s, Retail Link had

emerged into an Internet-enabled SCM
system whose functions were not confined
to inventory management alone

It also covered collaborative planning,

forecasting and replenishment (CPFR).
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 In CPFR, Walmart worked together
with its key suppliers on a real-time
basis by using the Internet to jointly
determine product-wise demand forecast.

CPFR is defined as a business practice for

business partners to share forecasts and
results data through the Internet, in order
to reduce inventory costs while at the
same time, enhancing product availability
across the supply chain.
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CPFR: Hard to implement
Though CPFR was a promising supply
chain initiative aimed at a mutually
beneficial collaboration between Walmart and
its suppliers , its actual implementation
required huge investments in time and money

A few suppliers with whom Walmart tried to

implement CPFR complained that a significant
amount of time had to be spent on developing
forecasts and analyzing sales data
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VAN EDI vs Web-EDI
In October 2002, Walmart asked its
14,000 suppliers to switch over from
the existing Value Added Networks (VAN)
EDI to web enabled EDI

VANs route and manage EDI messages

for their customers

By implementing web-EDI, Walmart can

save millions of dollars in the form of
license fees to the private
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 VAN EDI
Transactions between the business
partners are routed and managed
through Private Value Added
Networks.
It takes time for the messages to be
communicated between the trading
partners.
Transactions are not totally secure as
they are routed through private
players.
Charge transaction fees from those
who utilize the service. Transaction
costs are high.
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WEB EDI
Transactions between the business
partners are routed through the
internet.
Direct online communication between
the trading partners.
Security of transactions is relatively
high as the transactions are routed
through a secured web server with a
128 bit end-end security.
As internet is accessible to all ,no
transaction fee is charged.
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RFID Technology
(Radio Frequency Identification)
In efforts to implement new technologies
to reduce costs and increase the efficiency,
in July 2003, Walmart asked its top 100
suppliers to be RFID compliant by January,
2005.
Walmart planned to replace bar-code
technology with RFID technology.
They believed that this replacement would
reduce its supply chain management costs
and enhance efficiency.
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 Because of the implementation of
RFID, employees were no longer
required to physically scan the bar
codes of goods entering the stores and
distribution centers, saving labor cost and
time.

Walmart expected that RFID would reduce

the instances of stock-outs at the stores.

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 CONCLUSION
Walmart has been able to efficiently
USE and UPGRADE its IT tools ,
namely:
EDI
VOF
CPFR
RFID
Achieved EFFICIENCY and COST
MINIMIZATION

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Thank You

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