Friday, December 20, 2019

Wal-Mart Operations Management Analysis - 1276 Words

INTRODUCTION Wal-Mart Stores, Inc., the largest company in the world, has achieved leadership in the retail industry as a result of its efficient supply chain management practices. Setting record sales and earnings for fiscal year 2008, Wal-Mart’s total net sales were $374.5 billion, an 8.6 percent increase over the previous fiscal year and a record for any retailer. Wal-Mart’s mission to ‘save people money so they can live better’ has impacted more than 176 million consumers in thirteen countries. A global company, Wal-Mart has positioned itself as the unbeatable price leader in offering a variety of affordable products that range from health and beauty, to apparel and jewelry to electronics and food items. While expansion,†¦show more content†¦Cross-docking refers to the packing of products on incoming shipments so that they can be easily sorted at intermediate warehouses for outgoing shipments based on their final destinations. Thus Wal-Mart benefits through reductions in inventory investment, storage space requirements, handling costs and lead times, as well as increased inventory turnover and accelerated cash flow. In understanding that inventory management must include the entire supply chain, Wal-Mart’s implementation of Radio Frequency Identification (RFID) technology at its dock doors enables operations teams and suppliers know when a shipment arrives. The data is useful to determine when to order additional stock or to figure out if a store has over ordered. Similarly, Wal-Mart has implemented Collaborative Forecasting and Replenishment (CFAR) software to help provide more reliable medium-term forecasts by using the Internet. The system allows Wal-Mart and its suppliers to work together in determining an acceptable forecast. Wal-Mart has since benefited from an improvement in in-stock position from 85 percent to 98 percent as well as increases in sales and reductions in inventory costs. Wal-Mart invests time in meeting vendors to fully understand their cost structure in order to negotiate prices and establish a lasting, mutually beneficial relationship. Wal-Mart shares proprietary knowledge and processes with suppliers in order to improve quality and eliminate unnecessary cost inShow MoreRelatedOperational Planning for Wal-Mart1747 Words   |  7 PagesOperational Planning for Wal-Mart Introduction The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nations largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. 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