Walmart Case Study

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TO: Michael Duke, CEO and Eduardo Castro-Wright, Vice Chairman From: Cyrille Litche
Date: November 11, 2012
Purpose: Assess the need for and application of organizational control mechanisms to meet standards of the performance throughout the company’s value chain.

In response to your request of July 28, my staff and I have analyzed the Assess the need for and application of organizational control mechanisms to meet standards of the performance throughout the company’s value chain based on different points. We are pleased to present the enclosed report based on those different points. Role of automation and information technology

The use of information technology and automation has been an important part of Wal-Mart growth. Wal-Mart replaced the paper-based purchase orders or invoices to an electronic data interchange (EDI) and (RFID). EDI is the electronic exchange of business information, it used to transfer data between different divisions or departments, including finance, purchasing and shipping, it also involves business to business transactions and transactions between computers or databases. During EDI, information is sent from one participant’s computer system and translated to a standard format with special translation software. It is then transmitted to another participant, translated back from the standard format into a format used by the receiver and enterer into the receiver’s computer system. This change to EDI helped Wal-Mart reduce cost, increase processing speed, reduce errors and improve relationships with partners. Radio-frequency identification (RFID) is the use of a wireless non-contact system use to transfer data from a tag attached to an object, for the purposes of automatic identification tracking. Wal-Mart uses RFID to track inventory shipments from manufacturers’ warehouses to Wal-Mart’s stores, or let employees know what sizes of clothes, items are missing and what items are available in the stock room. The use of RFID help...
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