Wal-Mart's Supply Chain Practices
Supply Chain Management – Case Analysis
Ivey Case Study
Supply Chain Management at WalMart
For: Dr. Chirag Surti BUSI 2604U Prepared By: Jeremy Abbaterusso 100217118
Supply Chain Management – Case Analysis
TABLE OF CONTENTS
Introduction and Summary…………………………………………………………………. . 3 Supply Chain……………………………………………………………………….. ……… .4 Logistics…………………………………………………………………………….. .4 Purchasing and Operations…………………………………………………………...6 CPFR and the Bullwhip Effect……………………………………………………….7 Information Technology……………………………………………………………………. .8 Future Initiatives……………………………………………………………………. .9 REMIX……………………………………………………………………….9 RFID……………………………………………………………………….....9 Performance………………………………………………………………………………..... 11 Other Information Recent Failures……………………………………………………………………………….15 Conclusion……………………………………………………………………………………17
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Supply Chain Management – Case Analysis
Introduction and Summary
Research opens many windows into the thinking of various types of business throughout the world. In researching Wal-Mart and analyzing this case it has opened the window to the ability of a small town business man of Bentonville, Arkansas. This man is the legendary Sam Walton. Who, in 1962, created his “Wal-Mart Discount City”, however before coming to the opportunity of Wal-Mart; Sam Walton owned a number of Ben Franklin Store Chains. In having this prior experience of owning smaller variety stores and dealing with its franchised supply chain, this allowed Mr. Walton to learn various business concepts and also was able to selectively purchase merchandise in bulk from new suppliers and then transport these goods to his stores directly. This is when the realization and opportunity of “discount retailing” first evolved and was set to become a major influence in future business. This is, in my opinion, the spark of the “Everyday Low Price” (EDLP) strategy developed for the Wal-Mart chain. A quote which best shows and illustrates this evolved prediction talks about the
Ivey Case Study
Supply Chain Management at WalMart
For: Dr. Chirag Surti BUSI 2604U Prepared By: Jeremy Abbaterusso 100217118
Supply Chain Management – Case Analysis
TABLE OF CONTENTS
Introduction and Summary…………………………………………………………………. . 3 Supply Chain……………………………………………………………………….. ……… .4 Logistics…………………………………………………………………………….. .4 Purchasing and Operations…………………………………………………………...6 CPFR and the Bullwhip Effect……………………………………………………….7 Information Technology……………………………………………………………………. .8 Future Initiatives……………………………………………………………………. .9 REMIX……………………………………………………………………….9 RFID……………………………………………………………………….....9 Performance………………………………………………………………………………..... 11 Other Information Recent Failures……………………………………………………………………………….15 Conclusion……………………………………………………………………………………17
2|Page
Supply Chain Management – Case Analysis
Introduction and Summary
Research opens many windows into the thinking of various types of business throughout the world. In researching Wal-Mart and analyzing this case it has opened the window to the ability of a small town business man of Bentonville, Arkansas. This man is the legendary Sam Walton. Who, in 1962, created his “Wal-Mart Discount City”, however before coming to the opportunity of Wal-Mart; Sam Walton owned a number of Ben Franklin Store Chains. In having this prior experience of owning smaller variety stores and dealing with its franchised supply chain, this allowed Mr. Walton to learn various business concepts and also was able to selectively purchase merchandise in bulk from new suppliers and then transport these goods to his stores directly. This is when the realization and opportunity of “discount retailing” first evolved and was set to become a major influence in future business. This is, in my opinion, the spark of the “Everyday Low Price” (EDLP) strategy developed for the Wal-Mart chain. A quote which best shows and illustrates this evolved prediction talks about the