Supply chain management of Walmart
We also express the depth of my appreciation to our honorable course teacher for her suggestion and guidelines, which helped us in completing this report. Letter of Transmittal November 19, 2014 Famish Skater Nip, Lecturer, Department of Management Studies, Jonathan University, Dacha. Us abject: Submission of Report on “Supply Chain Management Systems of Wall- Mare. Dear Madam, We are the student of Department of Management studies, Jonathan University, Dacha and also from the group named “Dazzle”.
A report was given to us by you on “Supply Chain Management Systems offal-Mart”for submitting. We are really happy to have such a challenging and interesting report like this and we also feel to say “thank you” to you for making us worthy for corporate. During the preparation of this report we learn something very extra in practical which will be very helpful for us in future.
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There were some obstacles we have faced at the time of preparing this report. But we have overcome all the obstacles by the endeavor effort by each member of our group.
We had taken at most care to present this report and this report has been excellent outlet for combining theoretical and practical aspect. We are really grateful to you for giving us such a great job & opportunity like this to prove our ability in making a quality report. We had limitations at the time of preparing this report. So mistakes may occur in preparing this report. We hope you Will take our mistakes forgivingly. Yours Sincerely, On behalf of the group Sec: A Jonathan university, Dacha Table of Contents Chapter Topics page No.
Chapter-I Executive Summery 8 Introduction 9 Objectives of the Study 10 Methodology Chapter-2 Supply chain management 12-14 Functions of Supply Chain Management 14 About Wall-Mart 15-16 Wall-Mart at a glance 16-17 Strategic Position 18 Wall-Mart’s Supply Chain Description 20-23 Wall-Mart’s Business Processes 24 procurement and Distribution 25-26 Logistics Management 26-27 Company Supply Chain Strategy 28 Company Supply Chain Effectiveness 29-30 Future Work and Discussion 30-31 Chapter-3 Recommendation 33 Conclusion 34 References 5 CHAPTER- ONE Wall-Mart is one of the leading Fortune 500 companies, which is spread across the globe.
It is perhaps the largest retail chain which deals with everything from food to consumer electronics. Supply chain management has been the foundation to Wall-Mart’s success and remains their chief competitive advantage in the retail/department store industry. Wall-Mart is in the business of selling everything customers need in their everyday lives. Wall-Mart was divided into three business segments: Wall-Mart stores, Cam’s Clubs, and the International Division.
Their distribution system is generally regarded as the cost efficient and they have an approach to supply chain management that has long emphasized visibility through the sharing of information with their suppliers. Wall-Mart was one of the largest private sector employers in the world, with employee strength of approximately 1. 28 million. Supply chain management is moving the right items to the right customer at the right time by the most efficient means. No one does that better than Wall-Mart. Wall- Mart always emphasized the need to reduce its purchasing costs and offer the best price to its customers.
The company procured goods directly from manufacturers, bypassing all intermediaries. Wall-Mart was a tough negotiator on prices and finalized a purchase deal only when it was fully confident that the products being bought were not available elsewhere at a lower price. Supply chain management (SCM) is “the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long term performance of the individual companies and the supply chain as a whole. It has also been defined as the “design, planning, execution, control, and monitoring of supply Hahn activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. ” SCM is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer.
As organizations strive to focus on core competencies and becoming more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations. Less control and more supply chain partners led to the creation of the concept of supply chain management.
The purpose Of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement. Wall-Mart was the largest retailing company in the world. The company was much bigger than its competitors in the US – Sears Roebuck, K-Mart, J Penny and Nordstrom combined (Refer Exhibit I). Len 2002, Wall-Mart operated more than 3,500 discount stores, Cam’s Clubs and Superstructures in the US and more than 1,1 70 stores in all major countries across the world.
The company also sold products on the Internet through its website, Walter. Com. Wall-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 management systems and using innovative information technology (IT) tools. According to analysts, Wall-Mart was able to achieve a leadership status ((Refer Exhibit II)) in the retail industry because of its efficient supply chain management practices.
Captain Vernon L. Beauty, aide-De-camp to the commander, Defense Supply Center, Columbus, Ohio said, “Supply chain management is moving the right items to the right customer at the right time by the most efficient means. No one does that well than Wall-Mart. ” Every task has a particular aim. A study without objective cannot reach its estimation. The main objective of the study is to know about “Supply Chain Management Systems of Wall-Mart”. Some other objectives of this study mention in the following: 1 . To know about Supply chain Management system. . To know about supply chain process. 3. To know about Wall-Mart. 4. To gather knowledge about supply chain management of Wall-Mart. 5. To get a real idea about supply chain system. 6. To increase knowledge about supply chain. 7. To know how to manage supply chain process from Wall-Mart. 8. To know about retail system. We have collected data in the following ways: Website Desk report of the related department. Other manual information. Different reference books of the library News paper Articles Internship report CHAPTER.
Two THEORETICAL ASPECTS The term “supply chain management” entered the public domain when Keith Oliver, a consultant at Bozo Allen Hamilton (now strategy&), used it in an interview for the Financial Times in 1982. The term was slow to take hold. It gained currency in the mid-1 sass, when a flurry of articles and books came out on the subject. In the late asses it rose to prominence as a management buzzword, and operations managers began to use it in their titles with increasing regularity.
Commonly accepted definitions of supply chain management include: The management of upstream and downstream value- added flows of materials, final goods, and related information among suppliers, company, resellers, and final consumers The systematic, strategic coordination of traditional business functions and tactics across all business supply chain, for the purposes of improving the long-term performance Of the individual companies and the supply chain as a whole.
A definition is given by Hines (2004:pop): “Supply chain strategies require a total systems view of the inks in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer. As a consequence, costs must be lowered throughout the chain by driving out unnecessary expenses, movements, and handling. The main focus is turned to efficiency and added value, or the end-user’s perception of value. Efficiency must be increased, and bottlenecks removed.
The measurement of performance focuses on total system efficiency and the equitable monetary reward distribution to those within the supply chain. The supply chain system must be responsive to customer requirements. The integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders (Lambert, 2008) According to the Council of Supply Chain Management Professionals (CAMP), supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management.
It also includes coordination and collaboration with channel partners, which may be suppliers, intermediaries, third-party service providers, or customers. Supply chain management integrates supply and demand management within and across companies. More recently, the loosely coupled, self- organizing network of businesses that cooperate to provide product and service offerings has been called the Extended Enterprise.
Supply Chain Management (SCM) is the management of the relationship between the supplier’s supplier and the customer’s customer through the supply chain participants (Distributor/Wholesaler and Retailer) between them, mainly using information flow and logistics activities to gain Competitive advantage and customer satisfaction. Figure: Supply Chain Management System A supply chain, as opposed to supply chain management, is a set of organizations directly linked y one or more upstream and downstream flows of products, services, finances, or information from a source to a customer.
Supply chain management is the management of such a chain. In many cases the supply chain includes the collection of goods after consumer use for recycling. Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. In an example scenario, a purchasing department places orders as its requirements become known. The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to attics this demand.
Information shared between supply chain partners can only be fully leveraged through process integration. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems, and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires a continuous information flow. However, in many companies, management has concluded that optimizing product flows cannot be accomplished without implementing a process approach.