Walmart facts, SCM, Partnership with P&G, Big Bazaar in India

1. Wal-Mart’s Supply Chain Management
MEMBERS

2. Presentation coverage
 Some Walmart Facts
 Global Presence
 Supply Chain Management at Walmart
 Walmart Supply Chain Flow Chart
 Supply Chain elements at Walmart
 Walmart – P&G channel partnership
 SCM – enabled partnership in India
 Supply Chain Management at Big Bazar
 Inwarding Process at Warehouse
 Outwarding Process at Warehouse
 Unique Features in Big Bazar -Uniliver Partnership

3. Some Walmart Facts
 Walmart averages a profit of $1.8 million every hour.
 35 million people shop at Walmart every day, as
much as the population of Canada.
 The Walton family is worth $150 billion.
 Walmart’s top selling item in 2012 was the Banana.
 90% of Americans live within 15 minutes of a Walmart.

4. Global Presence
It has over 11,000 stores in 27
countries, under a total 55
different banners. The company
operates under the Walmart
name in the US and Puerto Rico.
It operates in Mexico as Walmart
de México y Centroamérica, in
the United Kingdom as Asda, in
Japan as Seiyu, and in India as
Best Price. It has wholly owned
operations in Argentina, Brazil,
and Canada.
Source - http://en.wikipedia.org/wiki/Walmart

5. Supply Chain Management at
Walmart
 Fewer Links in Supply Chain
 Vendor Managed Inventory (VMI)
 Strategic Vendor Partnerships
 Cross Docking as inventory Tactic
 Technology Universal Product Code bar codes
 Retail Link
 Information sharing with Partners
 RFID tags
Source - http://blog.tradegecko.com/incredibly-successful-supply-chain-management-walmart/

6. Walmart Supply Chain Flow Chart
Manufacturer
Manufacturer
Manufacturer
Retail Store
Retail Store
Radio, headphone
Point of sale terminal
Retail Store
Distribution center
Bar code, RFID
Satellite system
Company Headquarter

7. Supply Chain elements at
Walmart
Some of the ways supply chain is managed at Walmart-
 Minitrucks - Inside distribution centers equipped with headphone
Computer give direction to driver in voice.
 Bar Code System - Pallets passed through conveyor belt are
scanned automatically and product codes are transferred to
centralized computer system
 RFID - Use radio waves to identify objects, tags with microchip and
antenna built in
 Large Scale Satellite system - Link all of the stores to headquarter,
giving Wal-Mart’s central computer system real-time inventory data.
Continued…

8.  Information Sharing - Open its databases, Retail Link private
extranet system : to see exactly how its products are selling and
when it might need to up its production to give more than 2000
suppliers computer access to point-of-sale data.
 Walmart Advanced Vehicle Experience Concept Truck – It is the
latest in fleet efficiency program. The one-of-a-kind prototype
offers a whole package of firsts. The trailer is made almost
exclusively with carbon fibre, saving around 4,000 pounds, which
can then be used to carry more freight.
Here is a small video for the same……

10. Walmart – P&G channel
partnership
Initial Drawbacks-
 Adversarial Relationship - Wal-Mart did not like doing business with
P&G as they were too complicated and inflexible.
 Transactional focus - P&G were obsessed by day by day selling, in
which success was that you got the order today and failure was
that you did not.
 Main Objective – Only to push sales, irrespective of what the
customer needed, or was rewarded for. No testing or long term
planning.
Continued…
Source - http://citebm.business.illinois.edu/IT_cases/Graen-Shaw-PG.pdf

11.  Fragmented processes - Relationship and activities were
managed by the buying and selling function only.
Management - Post Deal
 An example of how that manufacturers and retailers integrate
into the supply chain as partners and build benefits for each
other by reducing costs and improving service.
 P&G installed the IT system Electronic Data Interchange (EDI),
recommended by Wal-Mart.

12.  Allowed Wal-Mart to get and share data, reducing the costs and
making higher profits.
 Used the CRP to reduce the reorder cycle time.
 Using these systems, P&G replenishes Walmart’s inventory.
 This assists P&G in managing its inventory levels and ensures that
P&G products are in stock in Wal-Mart at all times.

13. SCM – enabled partnership in India
Source - http://articles.economictimes.indiatimes.com/2011-08-22/news/29915200_1_devendra-chawla-big-bazaar-
future-group

14. Supply Chain Management at Big
Bazar
Big Bazar has partnership with many vendors out of which Unilever is one of the
biggest.
Procurement at big bazar happens from
 Central Distribution Centre (CDC).
 Local Vendors
The stock in the store is managed by Automated Replenishment System(ARS).
The CDC are located in such a strategically positioned so that it can easily caters
to the nearby Big Bazar.

15. Inwarding Process at Warehouse
PO generated by the ARS
Received by the vendor
Vendor delivers the Goods
IRN is issued by the warehouse management team
Stock Tally. If stock tally fails then discrepancy note is generated
GRN is issued
Stock is either piled in the warehouse or sent to the floor for sale

16. Outwarding Process at Warehouse
Raising of PO to the vendor by the CDC
Delivery of the stock to the CDC
Receiving of the stocks after weighing, counting and generation of IRN
Information is transferred to SAP
Generation of GRN
Stock piled stored in the warehouse of CDC
PO generated from stores to CDC
Outwarding of material from CDC
Receiving of goods at the Big Bazaar store

17. Unique Features in Big Bazar -
Uniliver Partnership
Sambandh Program - Sambandh program aims to foster an environment
combining our strengths to create immense value for our supplier partners and in
turn, nurture mutual growth.
There are three main aspects of the Sambandh program:
 Collaborating in business planning and management to ensure optimal growth
 Leveraging Future Group resources and making life easier for you
 Putting our strengths together to create a unique position in the marketplace
Continued…
http://www.futuregroup.in/suppliers/suppliers-distributors.html

18. Success Story - Netway began manufacturing homecare products like toilet
cleaners, glass cleaners, utensil cleaners and hand-wash at its plant under
Future Group’s guidance with respect to quality and other product
specifications. With this association, Netway’s turnover saw exponential
growth in just three years. Netway is now growing at a brisk pace of 50% in
sync with Future Group’s growth.