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Walmart's (SCM) Supply Chain Management

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by

Tawana Martin

on 7 February 2014

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Transcript of Walmart's (SCM) Supply Chain Management

SCM: Process Linkages
Customer Relationship Management & Customer Service Management- Process linkage is managed through tier 1 customers downstream
Demand management, Order fulfillment, Manufacturing flow Management, Procurement and returns- Process linkage is managed all through tier 3 for Contract manufacturers, managed through tier 2 for Partner manufacturers and Suppliers, then managed and/or monitored further down the tiers.

WalMart Specific Process Linkages


WALMART'S NETWORK STRUCTURE
MANAGED
NOT MANAGED
MONITORED
Walmart History
SCM & WALMART
Anytime & Anywhere
Low Everyday Pricing
Bargaining Power Over Suppliers
Global Expansion for New Market Opportunity
MANAGEMENT COMPONENTS
Q&A
Any Questions?

by: Lynda Callis
Seth Dag-Sosu
Eric Essien
Bankole Fagbemi
Tawana Martin
Yussif Muftawu

WALMART SUPPLY CHAIN

BACKGROUND
IMPORTANCE OF SCM
WALMART BENEFITS THROUGH SCM
NETWORK STRUCTURE
PROCESS LINKAGES
MANAGEMENT COMPONENTS
OVERALL ASSESSMENT & EFFECTIVENESS
Q&A
AGENDA
Concept first derived in the 1980's

WHY IS IT IMPORTANT?
Modern form of business management
Allows individual businesses to compete at a higher level as supply chains
Integrated network of multiple businesses and relationships
Strategic point of consumption/end user influence
Lower product costs – Increased customer savings & company profits











SUPPLY CHAIN MANAGEMENT (SCM)

An American multinational retail corporation
Runs chains of large department and warehouse stores
Founded by Sam Walton in 1962, Arkansas
Successful due to its IT usage in SCM
Became the largest US retail chain in the 1990’s



Forecasting
Lower Inventories
Higher Productivity
Shorter Lead Times
Higher Profits
Greater Customers
WALMART BENEFITS THROUGH SCM

PHYSICAL (TECHNICAL)
Product Flow
Planning & Control Methods
Communications & Information Flow
(RFID, EDI)

Wal-Mart processes include customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, procurement, and returns.
Wal-Mart process linkages include managed process links, monitored process links and very few not monitored links.
Wal-Mart Process linkages are horizontally wide, spanning across three tiers of suppliers, manufacturers and contract manufacturers upstream and through the one tier of customers downstream.
DYNAMIC SOLUTIONS
MANAGEMENT (BEHAVIORAL)
Management Methods
Power & Leadership Structure
Risk & Reward Structure
Culture & Attitude
MANAGEMENT COMPONENTS
OVERALL ASSESSMENT & EFFECTIVENESS
Lower product costs
Reduced inventory carrying costs
Improved in-store variety and selection
Highly competitive pricing for the consumer
Customer Trust & Confidence
Efficient services
DYNAMIC SOLUTIONS
THANK YOU!
SOURCES
WWW.WALMART.COM
WWW. GOOGLE.COM
WWW.YOUTUBE.COM
LAMBERT & COOPER (2000)
Full transcript