Mis 525 Final Project

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Organizing an ERP system for Wal-Mart to improve scanner and personnel issues.

Managerial Applications of Information Technology – IS535 (ON) Section B DeVry University, Keller Graduate School of Management

Table of Content
Abstract3
Company Background3
Business Problems4
High-level Solution6
Approach7
Walmart’s Systems7
Detailed Options/Solutions/high level implementation9
Private and public cloud
ERP to SAP
Security Risks
Conclusion11
Summary of Recommendations12
References13

Organizing an ERP system for Wal-Mart to improve scanner and personnel issues.

Abstract
The business problem to be solved is how the company can improve customer satisfaction with discrepancy in bar code scanner failure to in turn help improve employee performance and strategic planning for future errors. Company Background

Wal-Mart, being considered a mass merchandiser operates stores in all 50 states including Puerto Rico. Supercenters are situated in 48 states including Puerto Rico and also manage discount stores in 45 states. The average size of the supercenter is 78,000 square feet to 260,000 square feet with an approximate average size of 182,000 square feet. Wal-Mart consists of several merchandising units including grocery, health, entertainment, home and apparel. Incorporated in the year 1969 the stores well known company philosophy is everyday low prices (EDLP) in which items are priced below average on a daily basis. The company operates under three different business segments which include Wal-Mart U.S., Wal-Mart International, and the Sam’s Club segment. The Wal-Mart segment at the end of 2012 accounted for 60% of its net sales, Wal-Mart international for 28% and Sam’s Club for 12%.

Business Problem
The important part of Wal-Marts growth has been the use of programs in information technology. Trailing k-mart due to its size Wal-Mart was able to transition to negotiate lower prices for wholesale items. An initial part of Wal-Mart’s strategy was the use of a point of sale system or a computerized system which identified items sold, finds them in the computerized system, created accurate sales receipts, and stored item by item information to analyze reordering and sales inventory. By knowing which items are selling slowly Wal-Mart was is able to efficiently and effectively understand their handling information making them the world leader in inventory and distribution systems. Investing over 600 million in information systems Wal-Mart uses other programs such as telecommunications to link employees to other stores. This also allows central computers to link to the supplier’s computers to allow automatic reordering and increased efficiency in coordination. Wal-Mart is able to know what is selling well and communicates with suppliers to keep less money in overstocked inventory than other competitors. The computerized warehouse houses many goods which arrive and leave before taking up space on any shelves. Compared to other industries Wal-Mart only uses about 10 percent of its floor space for inventory compared to those who use above 25 percent. With increased coordination suppliers have an increase in manufacturing runs, lower costs,, and are able to pass those savings on to Wal-Mart and the consumer. Wal-Mart has about 3,800 vendors who receive data daily directly from the store and 1,500 have acquired the same analysis and decision software to check how their products are performing in various markets. Putting aside the telecommunications and computers equipment, Wal-Mart’s technical stand point is their point of sale system which is known as the bar code scanner. The scanners record the sale of all items and transfer the information making the item available for sales and reordering...
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