SUPPLY CHAIN MANAGEMENT OF WALMART
UNDER THE GUIDANCE OF: SUBMITTED BY: MOHD FAIZAN YUSUF PGDM 2009-11
Galgotias Business School
APPROVED BY AICTE, MİNİSTRY OF HRD, GOVT. OF INDİA) 1, KNOWLEDGE PARK, PHASE II, GREATER NOİDA. (U.P.) INTRODUCTION TO THE COMPANY
Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large discount department stores and a chain of membership required warehouse stores. wall Mart ranked first in the global fortune 500 list in the financial year 2001-02 earning revenues of $219 billion. Wal Mart was the largest retailing company in the world the company was much bigger than its competitors in the US.
The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered in Bentonville, Arkansas, is the largest majority private employer. Sam Walton a businessman from Arkansas, began his retail career when he started work on June 3, 1940, at a J. C. Penney store in Des Moines, Iowa where he remained for 18 months. In 1945, he met Butler Brothers, a regional retailer that owned a chain of variety stores called ben franklin and that offered him one in Newport, Arkansas. Walton was extremely successful in running the store in Newport, far exceeding expectations. However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville Arkansas, but called it "Walton's Five and Dime." There, he achieved higher sales volume by marking up slightly less than most competitors.
The company was incorporated as Wal-Mart Stores, Inc. on October 31, 1969. In 1988, the first Wal-Mart Supercenter opened in Washington, Missouri. Thanks to its superstores, it surpassed Toys "R" Us in toy sales in the late 1990s. The company also opened overseas stores, entering South America in 1995 with stores in Argentina and Brazil; and Europe in 1999, buying Asda in the UK for $10 billion.
LOW PRICE AND SATISFACTION
Wal-Mart was offering low prices, customer satisfaction guaranteed, and hours that were realistic for the way people wanted to shop. Open all night, for university students Wal-Mart suffered a setback in 1992, when Walton died. But it continued its growth in the 1990s, focusing on overseas stores.
By 1984, there were 640 Wal-Mart stores in U.S. This phenomenal growth of Wal-Mart is attributed to its continued focus on customer needs and reducing cost through efficient supply chain management practices.
WAL-MART has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management. Discuss in detail the distribution & logistic system adopted by Wal-Mart.
SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply Chain Management spans all movement and storage of raw material, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain).
Supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers....