The case examines the supply chain management practices at Wal-Mart, the leading retailer in the world. The case explains in detail how Wal-Mart managed various components of the supply chain including procurement, distribution, logistics and inventory management. It covers how the use of innovative IT tools has helped the company in improving the efficiency of supply chain. The case concludes with a discussion on the benefits reaped by Wal-Mart due to its efficient and effective supply chain management system.
Walton
was born in 1918 at Kingfisher, Oklahoma, US. After
graduating from the University of Missouri in 1940,
Walton worked for the famous retailer, J C Penney. In
his first job, Walton had displayed the qualities of
a good salesman. He realized the importance of building
loyalty among customers as well as employees. In the
mid-1940s, Walton gave up his job and decided to set-up
his own retail store. He purchased a store franchise
from Ben Franklin in Newport, Arkansas. It was here
that he learnt his first lessons in retailing - offering
significant discounts on product prices to expand volumes
and increase overall profits. The business was successful
and Walton soon acquired a second store within three
years.
Walton
not only looked for opportunities to open stores in
other small towns but also explored the possibility
of introducing innovative practices such as self-service.
As the need for people to manage his stores increased,
Walton tried to attract talented and experienced people
from other stores. By 1969, Walton had established 18
Wal-Mart stores, reporting an annual sale of $44 mn.
In mid-1970s, Wal-Mart acquired 16 Mohr-Value stores
in Michigan and Illinois. By the late 1970s, the retail
chain had established a pharmacy, an auto service center
and several jewelry divisions. |
