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PROJECT-SUPPLY CHAIN MANAGEMENT AT WAL-MART

A

PROJECT REPORT

ON

SUPPLY CHAIN MANAGEMENT AT WAL-MART


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INDEX

S.NO DESCRIPTION PAGE NUMBER

1. INTRODUCTION TO SUPPLY CHAIN MANAGEMENT 3

2. LEVELS OF SUPPLY CHAIN MANAGEMENT 4-5

3. HISTORY-WALMART 6

4. WAL-MART INTRODUCTION AND ITS BUSINESS PROCESSES 7-8

5. SUPPLY CHAIN MANGEMENT AT WAL-MART 9

6. PROCUREMENT AND DISTRIBUTION 10

7. LOGISTICS MANAGEMENT 11

8. INVENTORY MANAGEMENT 12

9. COMPETITIVE ADVANTAGE AND BUSINESS MODELS

USED AT WAL-MART 13

10. RFID IN WAL-MART 14

11. EFFICENCY IN SUPPLY CHAIN WITH RFID 15-18

12. CONCLUSION 19

13. LIST OF REFERENCES 20-21


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Introduction to Supply Chain Management

Supply Chain Management is the discipline which encompasses the end to end business

activities carried out in any business, independent of the manufacturing or service sectors.

It is the synchronization of a network of facilities and distribution options that performs

procurement of materials, processing the materials into finished products, and distribution

of the products to customers. SCM is seen as involving five fundamental processes. These

include planning, sourcing, making, delivering, and returning.

Typical supply chain showing interrelations between all involved parties. [Source:

Auto-ID: Managing Anything, Anywhere, Anytime in the Supply Chain, Bose and Pal, ACM

August 2005]

SCM subsists in both service and manufacturing environments. A typical supply chain

consists of many interactions between suppliers, manufacturers, distributors, retailers,

with the vital goal of providing either a service or a product to customers. This also works

in reverse with the customer at the head of the process when returning a product.

SCM is used as a means to assimilate planning, purchasing, manufacturing, distribution, and

marketing organizations that normally do not work together to achieve a common goal.

Each works toward goals specific to their own organization that accomplish narrow

objectives. SCM is a way of integrating these varying functions so that they work together

to make best use of the benefits for all involved.


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History-Wal-Mart

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 in Bentonville, Ark.

1977: Wal-Mart makes first acquisition, 16 Mohr-Value stores in Michigan andIllinois.1978: Hutcheson Shoe Company acquired1981: Wal-Mart makes its next acquisition with 92 Kuhn's Big K stores.1983: U.S. Woolco Stores acquired.1990: Wal-Mart becomes nation's No. 1 retailer.1990McLane Company of Temple,Texas acquired.1997: Wal-Mart replaces Woolworth on the Dow Jones Industrial Average.2003: Wal-Mart named by FORTUNE magazine as the most admired company inAmerica.

Operations

Wal-Mart operations are comprised of three business segments:

Wal-Mart Stores

SAMS CLUB

Wal-Mart International

Wal-Mart Stores segment is the largest segment, which accounted for approximately 67.3%

of their 2005 fiscal sales. This segment consists of three different retail formats, all of which

are located in the United States. This includes the following sections:

Super-centers, which average approximately 187,000 square feet in size and offer awide variety of products and a full-line supermarket;

Discount Stores, which average approximately 100,000 square feet in size and offera wide variety of products and a limited stock of food products; and

Neighborhood Markets, which average approximately 43,000 square feet in size andoffer a full-line supermarket and a limited variety of general merchandise.

SAMS CLUB segment consists of membership warehouse clubs in the United States which

accounted for approximately 13.0% of 2005 fiscal sales. SAMS CLUBs in the United States

average approximately 128,000 square feet in size.

Wal-Mart International operations are located in Argentina, Canada, Germany, South Korea,

Puerto Rico and the United Kingdom, the operations of joint ventures in China and


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operations of majority-owned subsidiaries in Brazil and Mexico. This segment generated

approximately 19.7% of 2005 fiscal sales. Here, it operates several different formats of

retail stores and restaurants, including Super-centers, Discount Stores and SAMS CLUBs.

For the fiscal year ending January 31, 2005, Wal-Mart topped $10 billion in net income for

the first time in their history and added almost $29 billion in sales.

wallmoperational project for mba

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