Best Practices of Supply Chain Management at Walmart

Walmart Supply Chain Management

Ohio said ,”Supply chain management is moving the right items to the right consumers at the right time by the most efficient means .And no one does it Better than Walmart .” Walmart stores were located at convenient place in a big warehouse type building and targeted customers who wanted to buy merchandise in Bulk .

Walmart’s growth continues because it focuses on the customer’s needs and reduces cost through efficient supply chain management practices . Walmart has always considered it important to reduce it’s purchasing costs and pass on the same benefits to its customers .It procured goods directly from the manufacturers bypassing all the intermediaries . Walmart procured goods only when it was assured that the goods are not available anywhere at lower prices .

Walmart spend a significant time with there vendors and understanding their cost structure .By making the process transparent it assured that the vendors did their best to keep the costs down . Walmart had 40 distribution centres in 1998 , and due to its own distribution centre it was able to maintain a consistent and steady supply .Walmart used Bar-code technology and handheld computer system .Every employee had real time imformation of the inventory levels . Another important feature of Walmart’s Supply Chain is its efficient Logistics System .

Walmart has its own Logistics Structure .Due to its transportation costs are only 3% as compared to 5% of its competitors .Also it recruited drivers who had an experience of accident free driving ,it also have a rule books for the drivers .And the main focus of the drivers was also customer satisfaction .Walmart believed it needed drivers who were dedicated and committed to efficient customer service . Walmart invested heavily in IT and communication system to effectively track its sales and inventories in the store .Walmart also have its own Satellite communication System .

Due to the highly sophisticated communications systems Walmart was able to track all the real time data of sales and inventories in the store ans the same data is passed on to the supplier of Walmart , which makes it easier to replenish the goods faster .And due this it was also able to bring down its inventory levels . Cross Docking also helped Walmart to reduce the inventory Storage Costs . Walmart’s Supply Chain Practices resulted in increased efficiency in Operations and Better Customer Service and subsequently it was able to pass on this benefits to its Customers

Biba Apparels Private Limited ("Biba")

Biba is involved in the designing and marketing of women’s apparel brand. In addition to establishing its presence in women‘s ethnic wear segment in India, Biba has also created the "Meena Bindra" brand which caters to the price-conscious segments of the market. As of February 28, 2011, it operated through 68 exclusive brand outlets and 133 multi-brand outlets, including 65 Future Group outlets.

Turtle Limited ("Turtle")

Turtle is a Kolkata based manufacturer, distributor, exporter and retailer of menswear products, such as shirts, T-shirts, trousers and accessories like ties, cufflinks and handkerchiefs. As of February 28, 2011, it operated through 46 exclusive “Turtle Wood” brand outlets, 1,550 multi-brand outlets and 80 Future Group outlets.

Capital Foods Exports Private Limited ("Capital Goods")

Capital Foods is a company engaged in food processing having development and manufacturing capabilities in various processed food products, such as instant noodles, sauces, chutneys and microwavable rice and curries. It retails its products under the brands: Capital Foods Limited is proposing to establish a foodpark at Kolar/ Tumkur in Karnataka under the Mega Food Parks Scheme of MOFPI. The park is being designed to provide integrated facility for food processing enterprises and to enable the farmers in the vicinity to sell their farm produce with minimum wastage and intermediation. Further, the Sambandh program has enabled our relationships with some of the partners to scale up and grow to the next level.

Netway Home Products

Netway Home Products, which started as a small FMCG trading company in 2001, scaled up its operations in 2003 to cater to Future Group’s requirements by setting up an 800 sq. ft. manufacturing plant at Palghar, Maharashtra. 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. Being part of the Sambandh program gave Polygenta Electronics Ltd. (manufacturers of Koryo products for us) the courage to experiment with a new category ‘kids electronics’. The company will soon be launching more innovative products for Indian consumers.