walmart operation management - a slight overview
TRANSCRIPT
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OPERATIONS MANAGEMENT OF WALMART
Subject : Production and Operations Management (FSMBFA SII-1)
Presentation Made by : Kunal Gawade (000FSMBFA1617005)
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About Walmart Founded by Sam Walton in 1962 Walmart has 11500 retail units under 63
different banners in 28 countries In India, it operates with name of “Best
Price” Largest Private employer It earned revenue of $482.1 Billion for
year 2016.
Source : Fortune 500
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Cheap & Best
A1 Quality Clothes Electronics Food & other
Items
Walmart Strategy
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Operations Management Operations management refers to the
administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.
OutputsTransformationInput
s
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Obtaining Materials
Storage
Shops & Retail Units
Walmart Operations Process
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Obtaining Materials
Clothes Electronics related items
Food and other related items
Wage Rate = $ 0.32 per hourSource : Global Union Alliance
2013
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Obtaining Materials
Imported Goods
•Ocean Shipping•Tax Benefit
Other Goods
•Transported through Self owned Trucks•Employing around 7500 truck drivers •Having 6100 tractors, 61000 trailers
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Storage : Walmart’s Vendor-Managed Inventory Model
In this model, suppliers access data from Walmart’s information system, such as data on current inventory levels and the rate at which certain goods are sold.
Thus, Walmart saves costs and has no issue for reorder.
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Storage :Types and Roles of Inventory at Walmart
1. Finished Goods Inventory2. Transit Inventory3. Buffer Inventory
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Storage : Just-in-Time Cross-Docking in Walmart’s
Inventory Management In cross-docking, suppliers’ trucks and
Walmart’s trucks meet at the company’s warehouses. Goods are transferred from the suppliers’ trucks directly to Walmart’s trucks, which deliver the goods to the stores.
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Storage : Walmart’s Measures of Inventory Performance
Walmart uses numerous variables as measures of inventory performance. However, the following measures are the most significant: Inventory turnover Stock-out rate Inventory size
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Storage : Managing Inventory across the Supply Chain
1. ABC Analysis
2. Inventory Information Systems
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Shops & Retail Units Shop location , layout & size Each Product is noted Categorized Product Low wages
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Shops & Retail Units: Low Wages
A Walmart labor is paid : $ 8.81 per hour Working Hours : 34 hours a week FEDERAL POVERTY LEVEL : $ 23550
Source : Global Union Alliance 2013
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Any Questions ?
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Thank You !