The case examines the supply chain management practices at Wal-Mart, the leading retailer in the world. The case explains in detail how Wal-Mart managed various components of the supply chain including procurement, distribution, logistics and inventory management. It covers how the use of innovative IT tools has helped the company in improving the efficiency of supply chain. The case concludes with a discussion on the benefits reaped by Wal-Mart due to its efficient and effective supply chain management system.| | Issues:
» Understand the importance of an efficient distribution and logistics management system in not only reducing the costs for a retailing company but also in creating value for the customers Contents:
| Page No.|
Background Note| 2|
Managing the Supply Chain| 3|
The Benefits Reaped| 6|
Supply chain management, Wal-Mart, retailer, world, managed, components, procurement, distribution, logistics ,inventory management, IT, tools, efficiency
The US-based Wal-Mart ranked first in the global Fortune 500 list in the financial year 2001-02 earning revenues of $219.81 billion (Refer Table I). Wal-Mart was the largest retailing company in the world. The company was much bigger than its competitors in the US - Sears Roebuck, K-Mart, JC Penney and Nordstrom combined (Refer Exhibit I).
In 2002, Wal-Mart operated more than 3,500 discount stores, Sam's Clubs and Supercenters in the US and more than 1,170 stores in all major countries across the world. The company also sold products on the Internet through its website, walmart.com.| | Wal-Mart was one of the largest private sector employers in the world, with employee strength of approximately 1.28 million. | The company's founder, Sam Walton (Walton) had always focused on improving sales, constantly reducing costs, adopting efficient distribution and logistics...