chpt6 wal-mart and mattel presentation

7/30/2019 Chpt6 Wal-Mart and Mattel Presentation

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Wal-Mart and Mattel:Supply Chain Management

Best Practices

Chapter 6 Case 5

Page 216


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Team Members

Elisabeth Cates

Yvonne Hildebrand

Jesse Janis

Mary Napier

Nina Wolf

Eric Young


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Jessi Janis 4

CEOJohn B. Menzer

Executive Vice President and

President and Chief Executive

Officer, Wal-Mart International

Division since 1999

19951999 Executive VicePresident and Chief Financial

Officer for Wal-Mart Stores,

Inc.

1999 CFO Excellence Award

from CFO Magazine

Prior to joining Wal-Mart, he

was President of Ben Franklin

Retail Stores, Inc


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Jessi Janis 5

History - Founder

Sam Walton in 1962

On this picture in 1984 he

does the hula at high noon

on Wall Street, making

good on promise to

associates after company

achieves pre-tax profit of

8 percent in 1983.


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Jessi Janis 6

Historysome important dates

1962: Company founded with opening of first Wal-Mart in Rogers,Ark.

1967: Wal-Mart's 24 stores total $12.6 million in sales.

1970: Wal-Mart opens first distribution center and home office inBentonville, Ark.

1977: Wal-Mart makes first acquisition, 16 Mohr-Value stores inMichigan and Illinois.

1978: Hutcheson Shoe Company acquired

1981: Wal-Mart makes its next acquisition with 92 Kuhn's Big Kstores.

1983: U.S. Woolco Stores acquired.

1990: Wal-Mart becomes nation's No. 1 retailer.1990McLaneCompany of Temple, Texas acquired.

1997: Wal-Mart replaces Woolworth on the Dow Jones IndustrialAverage.

2003: Wal-Mart named by FORTUNE magazine as the most admiredcompany in America.


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Jessi Janis 7

Product / Services

wide variety of general merchandise

36 departments including family apparel, health & beauty

aids, household needs, electronics, toys, fabrics & crafts,

lawn & garden, jewelry and shoes Pharmacy Department, Tire & Lube Express, garden

center, snack bar or restaurant, Vision Center and One-

Hour Photo Processing

Alaska Bush Shopper: If you're in Alaska and far from aWal-Mart store, order items and have them shipped to you

through our Alaska Bush Department.


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Stock Split History

In 1970, Wal-Mart offered 300,000 shares of its common stock to the public at a

price of $16.50 per share. Since that time, it has had eleven (11) two for one (2/1)

stock splits. On a purchase of 100 shares at $16.50 per share on ist first offering,

the number of shares has grown as follows:

2-for-1

Shares Cost per Share

MarketPrice On

Split Date

Record

DistributedStock Splits Date

On the Offering 100 16.50

May 1971 200 Aug 25 $47.00 05.19.71 11.06.71

March 1972 400 4.125 47.50 03.22.72 05.04.72

Aug 75 800 2.0625 23.00 08.19.75 08.22.75

Nov 80 1600 1.03125 50.00 11.25.80 12.16.80June 1982 3200 0.515625 49.875 06.21.82 09.07.82

June 1983 6400 0.257813 81.625 06.20.83 08.07.83

Sep 85 12,8 0.128906 49.75 03.09.85 04.10.85

June 1987 25,6 0.064453 66.625 06.19.87 10.07.87

June 1990 51,2 0.032227 62.50 06.15.90 06.07.90

February 1993 102,4 0.016113 63.625 02.02.93 02.25.93

March 1999 204,8 0.008057 89.75 03.19.99 04.19.99


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Nina Wolf 9

Stock development


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Nina Wolf 10

Economic Impact for Year Ending Jan.

31, 2002 (USA)

WAL-MART Stores:1,636

Supercenters: 1,093

Neighborhood Markets: 31

Sams Clubs: 502

Distribution Centers: 106

Associates employed in U.S.: 1,043,970

Community involvement: $196 million

Total amount spent with U.S. suppliers: $107 billion

Totoal federal, state and local taxes paid: $1.2 billion

Sales taxes collected and remitted: $8.5 billion


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Nina Wolf 11

Net Sales 2003 (in millions):

$ 244,524

Sales in millions

0

50,000

100,000

150,000

200,000

250,000

300,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Sales


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Mattel

www.mattel.com


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Eric Young 13

Robert A. Eckert, Mattel's chairman

and chief executive officer

Robert A. Eckert is chairman ofthe board and chief executiveofficer of Mattel, Inc., theworldwide leader in the design,manufacture and marketing of

toys with approximately $5billion in annual sales.

Eckert joined Mattel in May2000 from Kraft Foods, Inc., thelargest U.S.-based packagedfood company in the world.

He received a Bachelor ofScience degree in businessadministration from theUniversity of Arizona in 1976and an M.B.A. in marketing andfinance from NorthwesternUniversity in 1977.


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Eric Young 14

1945: Mattel is foundet by Ruth and Elliot Handler and Harold Matt

Matson

1959: First Barbie

1960: Mattel becomes apublic owned company

1974: Mattels enters into in a Consent Decree with the Securities and

Exchange Comission

1986: Mattel acquires Hong-Kong based ARCO industries

1986: Joint Venture with Bandai

1988: Purchase of Corolle S.A. (France) 1989: Acquisition of Corgi Toys Ltd.

1992: Acquisition of International Games Inc.

1994: Acquisistion of Kransco and J.W. Spear & Sons


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Mary Napier 15

Products/ Partners


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Mary Napier 16

Net Sales in thousands

4300000

4400000

4500000

4600000

4700000

4800000

4900000

1998

1999

2000

2001

2002


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Summary

Case 5


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Mary Napier 18

Summary

Mattel as asupplier ofWal-Mart

Supply Chain Management

Benchmark company

Used cutting edge technology tobuild IT infrastructure that includesall aspects of the chain

First to use Radio FrequencyIdentification (RFID)

Implemented a collaborative

planning, forecasting, andreplenishment (CPFR) program,beginning a Just-In-TimeInventory Program

Sharing of ideas and data is key tothe just-in-time practices that arein place within Wal-Mart

Data sharing from a retailers on a

global basis allows suppliers toreduce their inventory costs,resulting in a lowering of overallcosts

Efficiency in supply chain is keyfor low-price leadership, resultingin far lower margins for suppliersand retailers

Wal-Marts system can work wellfor all businesses and has beenstudied in-depth


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Question 1

Do you agree that Wal-Mart is the best

supply chain operator of all time? Why orwhy not? in the workplace?


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Yvonne Hildebrand 20

Question 1 Wal-Mart is one of the best supply chain

operators at the moment

Using a supply chain management system that is

progressively against its competitors and theydont even stop evolving.

Pushing the limits of supply chain management,

searching for and supporting better technology

that promises to make its IT infrastructure more

efficient.


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Question 1 Wal-Mart uses radio frequency identification

(RFID) microchips that replace bar codes andsecurity tags with a combination technology thatcosts less money.

Wal-Mart shares its data with its suppliers.

By implementing a collaborative planning,forecasting, and replenishment system (CPRF),

Wal-Mart began a just-in-time delivery programthat reduced costs for both the retailer and itssuppliers.


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Question 1The system is still not perfected.

The system still is too expensive for low-

budget products.

Signals cant be send over a long distance.

Metal impedes the funk signals, so Wal-

Mart must still improve the system.


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Question 2

What has Mattel learned from Wal-Mart?

How well are they applying it to theirbusiness?


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Elizabeth Cates 24

Mattels knowledge gained from

Wal-Mart

Optimization of the supply chain for Wal-

mart by utilizing data gained from Wal-

marts inventory databasesMaintaining a efficient supply chain so that

there less excess inventory


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Elizabeth Cates 25

Applications

Utilize the sales data on a daily basis to tailor tothe needs of supply and demand

Pinpoint what product is selling and where so

Mattel can accommodate to the manufacturingneeds

In doing so, both Wal-Mart and Mattel aresuccessful in the way that they both are working

simultaneously to fulfill the needs of retailcustomers


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Question 3

What can other businesses learn from the experiences

of Wal-Mart and Mattel that could improve their

supply chain performance? Use an example toillustrate your answer.


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Nina Wolf 27

Question 3

Important to save time and reduce costs

Example: Hospital

Usually small margins

Surgical instruments and products listed in a database,

which is connected to their supplier Everything will be recorded in the database

Advantage Knowledge who has used what

Knowledge what every department need Reduce stock

Receive only products, that they really need

Supplier can optimize its production/stock


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Questions?

Thanks for your attention!

chpt6 wal-mart and mattel presentation

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