Supplychain Management at Walmart
Summary
SUPPLY CHAIN MANAGEMENT AT WAL-MART
Wal-Mart was the world 's largest retailer, with US$312.4 billion sales from operations spanning 15 countries in 2006. In the most recent quarters the company had been unable to meet its self-imposed target of holding inventory growth to half the level of sales growth. Wal-Mart 's new executive vice-president of logistics, Johnnie C. Dobbs, wondered what he could do to ensure that Wal-Mart 's supply chain remained a key competitive advantage for his firm,
RETAIL INDUSTRY
In United States, retailers competed at local, regional and national levels, with major chains such as Wal-Mart and Costco competing in foreign countries. The industry included formats such as one-store owner-operated retailer, discount stores, department stores, variety and convenience stores, specialty stores, supermarkets, supercentres, Internet retailers and catalogue retailers.
The top 200 retailers accounted for approximately 30% of worldwide retail sales. For 2005, retail sales were estimated to be US$3.7 trillion in the United States and CDN$572 billion in Canada.
BACKGROUND OF WAL-MART STORES
Based In Bentonville, Arkansas and founded by Sam Walton, Wal-Mart was the world 's largest retailer with more than 6,500 stores worldwide, including stores in all 50 states as well as international stores in Argentina, Brazil, Canada, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Puerto Rico and the United Kingdom, as well as joint venture agreements in China and a stake in a leading Japanese retail chain. It was estimated that Wal-Mart served more than 138 million customers each week.
Wal-Mart 's strategy was to provide a broad assortment of quality merchandise and services at "everyday low prices" (EDLP) and was best known for its discount stores. In the general merchandise area, Wal-Mart 's competitors included Sears and Target, with specialty retailers including Gap and Limited. Department store competitors included
SUPPLY CHAIN MANAGEMENT AT WAL-MART
Wal-Mart was the world 's largest retailer, with US$312.4 billion sales from operations spanning 15 countries in 2006. In the most recent quarters the company had been unable to meet its self-imposed target of holding inventory growth to half the level of sales growth. Wal-Mart 's new executive vice-president of logistics, Johnnie C. Dobbs, wondered what he could do to ensure that Wal-Mart 's supply chain remained a key competitive advantage for his firm,
RETAIL INDUSTRY
In United States, retailers competed at local, regional and national levels, with major chains such as Wal-Mart and Costco competing in foreign countries. The industry included formats such as one-store owner-operated retailer, discount stores, department stores, variety and convenience stores, specialty stores, supermarkets, supercentres, Internet retailers and catalogue retailers.
The top 200 retailers accounted for approximately 30% of worldwide retail sales. For 2005, retail sales were estimated to be US$3.7 trillion in the United States and CDN$572 billion in Canada.
BACKGROUND OF WAL-MART STORES
Based In Bentonville, Arkansas and founded by Sam Walton, Wal-Mart was the world 's largest retailer with more than 6,500 stores worldwide, including stores in all 50 states as well as international stores in Argentina, Brazil, Canada, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Puerto Rico and the United Kingdom, as well as joint venture agreements in China and a stake in a leading Japanese retail chain. It was estimated that Wal-Mart served more than 138 million customers each week.
Wal-Mart 's strategy was to provide a broad assortment of quality merchandise and services at "everyday low prices" (EDLP) and was best known for its discount stores. In the general merchandise area, Wal-Mart 's competitors included Sears and Target, with specialty retailers including Gap and Limited. Department store competitors included