Wal Mart Supply Chain

Topics: Supply chain management, Supply chain, Wal-Mart Pages: 12 (4304 words) Published: January 21, 2013
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By Group 11:
Abhinav Kumar (131)
KSK Kaushik (132)
Anand Rana (144)
Saurabh Suman (152)
Vinayak (157)
Jigar Jain (164)

Executive Summary
With over US$444 billion in 2012 sales from operations in 27 countries, Wal-Mart Stores, Inc. is the world’s largest retailer. Wal-Mart is the world’s third largest public corporation, according to the Fortune Global 500 list in 2012 and world’s biggest private employer with 2.2 million associates worldwide. Wal-Mart serves customers and members more than 200 million times per week. Wal-Mart operates under 69 different banners. Wal-Mart’s supply chain, a key enabler of its growth from its beginnings in rural Arkansas, has long considered by many to be a major source of competitive advantage for the company. In fact, when Wal-Mart was voted “Retailer of the Decade” in 1989, its distribution costs were estimated at 1.7 per cent of its cost of sales, comparing favorably with competitors such as Kmart (3.5per cent of total sales) and Sears (five per cent of total sales). Their distribution system is generally regarded as the most emphasized visibility through the sharing of information with their suppliers. Wal-Mart slipped to No. 2 in the Fortune 500 in 2011 after holding onto the top spot for two years in a row. Wal-Mart's international business continues to be a source of growth for the company - revenues outside the U.S. rose by 13.1% last year, to $35.5 billion. 

Wal-Mart has come a long way since its inception and undergone many changes on the way. Sam Walton’s initial strategy was to target low-income families in rural areas by offering significantly lower costs. Through use of technology in distribution and supply chain logistics Wal-Mart has been able to cut costs and lower prices for end users. Wal-Mart is one of the best supply chain operators at the moment. Using a supply chain management system that is progressively against its competitors and they don’t even stop evolving. Pushing the limits of supply chain management, searching for and supporting better technology that promises to make its IT infrastructure more efficient. The company has 4 strategies driving its operations: * Becoming a truly global company

* Solving Business Challenges
* Leading on social issues
* Keeping its culture strong
Wal-Mart has also taken various initiatives in its approach towards its operations. Some of them include following: In 1992 Wal-Mart developed Ethical sourcing program to verify the products they sell are produced in a way that provides dignity and respect for workers in the supply chain, while protecting the environment. For eight straight years, Wal-Mart U.S. Logistics’ recordable injury rates have been below industry average. This year the entire Wal-Mart U.S. Logistics Network introduced an Enhanced Behavior Based Safety Program. Wal-Mart has implemented a Supplier Development Program, in which the Ethical Sourcing Team works closely with suppliers to improve working conditions in factories. Background of Wal-Mart Inc

Based in Bentonville, Arkansas and founded by the legendary Sam Walton, Wal-Mart is the world’s largest retailer with more than 8,500 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. The company has over 2.2 million employees (known as “associates”). It was estimated that Wal-Mart served more than 200 million customers each week. Wal-Mart’s strategy is to provide a broad assortment of quality merchandise and services at “everyday low prices” (EDLP) and is best known for its discount stores, which offered merchandise such as apparel, small appliances, housewares, electronics and hardware, but also ran combined discount and grocery stores...
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