Sams Clubs

Wall Mart Inc. Presented By: Alweena Raza Irum Kamal Kiran Shah and Hira Siraj

Satellite system Data collected and analyzed Observing Merchandise flow, overstock, discount Video transmissions, credit card authorizations, and inventory control

Wal*Marts Discount Stores and Store Operation

2

WALMART

Phenomenal distribution network Two step hub-andspoke

Wal*Marts Discount Stores and Distribution

3

WALMART

Phenomenal distribution network Distribution center Cost advantage Stable price

Wal*Marts Discount Stores and Distribution

4

WALMART

Wal*Marts Discount Stores and Distribution

5

WALMART

Backward integration No nonsense negotiator Economies of scale Maintain long term relationship with supplier, as powerful partner (RSP)

Wal*Marts Discount Stores and Vendor Relationships

6

WALMART

Backward integration Electronic data interchange (EDI) CPFR Forecasting Planning Replenishing Shipping applications

Wal*Marts Discount Stores and Vendor Relationships

7

WALMART

The CPFR Process

Once
FRONT END AGREEMENT

Seller
Collaborative Planning Collaborative Forecasting Collaborative Replenishment

Qtr.

JOINT BUSINESS PLAN

CREATE SALES FORECAST

Wk, Mo

IDENTIFY EXCEPTIONS RESOLVE EXCEPTIONS

Wk, Mo

CREATE ORDER FORECAST IDENTIFY EXCEPTIONS RESOLVE EXCEPTIONS

GENERATE ORDER

Buyer

Non-unionized Decentralized: full autonomy Profit sharing program Yes we can Sam Store within store Shrink incentive Stock sharing Administrative style Frugality

No hierarchy in organization

Wal*Marts Discount Stores and Human Resource Management

9

WALMART

Support Activities

Firm Infrastructure
Human Resource Management

Inferior fixtures standardization, Trucks, Average store size 84,000 square feat Non-unionized, Full autonomy to associates, Decentralized, profit sharing program, Job rotation, Stock purchase plan UPC at POS, EDI, Information system, VMI ,Cross ducking , Satellite system, CPFR Maintain long-term relationship, No single supplier accounting for more than 2.4%, Selective suppliers ( P&G & GE), NO nonsense policy
VMI system Retail link EDI CPFR Six days a week(9~21) Monday (12:30~17:30) Two step hub and spoke distributing system Everyday ECR low price Satisfaction Always low guarantee price, policy always Self service Quick response Cash and (QR) carry Save money, live better credit card, Layaway plan Marketing & Sales After Sales Service

Technology Development Procurement

Margin

Primary Activities

Inbound Logistics

Operations

Outbound Logistics

Wal*Marts Discount Stores and Value Chain

WALMART