operation management wal-mart

A Presentation by

Dhaval GurnaniK.S.School of Business Management

Year-2012-13

Wal-Mart Stores, Inc. branded as Walmart, is an American multinational retailer corporation.

The company is the world's third largest public corporation, according to the Fortune Global 500 list in 2012. It is also the biggest private employer in the world with over two million employees,.

Walmart remains a family-owned business.

It is also one of the world's most valuable companies.

The company was founded by Sam Walton in 1962, incorporated on October 31, 1969.

It publicly traded on the New York Stock Exchange in 1972.

HEADQUARTERS--Bentonville,Arkansas.

WALMART STORES ACROSS VARIOUS COUNTRIES

• Walmart has 8,500 stores in 15 countries, under 55 different names.

• The company operates under the Walmart name in the United States, including the 50 states and Puerto Rico.

• It operates in Mexico as Walmex.

• In the United Kingdom as Asda, in Japan as Seiyu.

• In India as Best Price.

• It has wholly owned operations in Argentina, Brazil, and Canada.

WALMART SLOGAN

Starting slogan: Always Low Prices New slogan: Save Money. Live Better.(from 2007)

To give ordinary folk the chance to buy the same thing as rich people

To become the worldwide leader in retailing

What is Operation Management?

Operations Management is about the transformation of production and operational inputs into "outputs"

that, when distributed, meet the needs of customers.

OPERATION STRATEGY

Capturing market share with “everyday low price” strategy.

Cultural adaptation.

Training employees because people are key to Wal-Mart's business

Buy at less to sell at less.

OPERATION STRATEGY

Different shop design for each demographic groups.

All product in one store.

Competence in use of information technology for logistics system.

Highest customer satisfaction

COMPETITIVE STRATEGY

Creating more than 210,000 jobs in the U.S.

Saves working families more than US $2,500 per year.

Discounting on food alone boosts the welfare of American shoppers by approx. $ 50 billion per year.

OPERATION STRATEGY FOR THE DEVELOPMENT OF SOCIETY

Introduced new Layout to improve Customer Experience with faster service.

Always offer unbeatable Prices

Layout of the stores will save customers time as they shop for everyday necessities

Its Service layout create an open shopping environment that helps customers find what they are looking for quickly.

INNOVATIVE SERVICE LAYOUT TO MAKE SHOPPING EASIER

Walmart's operations are organized into three divisions:

1)Walmart Stores

2)U.S., Sam's Club, and

3)Walmart International.

OPERATING DIVISIONS OF WAL-MART

SHELF MANAGEMENT AT WAL-MART

• Capacity PlanningThe process of determining the production capacity needed by an organization to meet changing demands for its products• Shop LocationUSA 50 STATES 4300 OUTLETSGLOBE 14 COUNTRIES 4081 OUTLETS

• Shop LayoutNew layout for customer experience.

Wal-Mart supercenters– a full-service supermarket

Discount stores– discount department stores

Neighborhood Markets – Shop for daily necessary goods

Sam’s Club warehouses– membership based stores

• Shop SizeDifferent size for different stores• Warehouse SizeSingle large warehouse for a single state.

PRODUCT AND SERVICE FACTOR

• PRICELow Price everyday• SUPPLIERSPartners with more than 2500 minority-and women-owned business suppliers.

Walmart’s Method of Managing the Supply Chain

• KEY COMPONENTS1. Vendor Partnerships2. Cross Docking 3. Distribution Management4. Technology and Integration

• Why is their Supply chain management superior than others?

• Efficient supply chain• Deals with suppliers• Different deals with different customers.• Different service policies• Excellent, consistent service at a reasonable

cost

JUST IN TIME & RADIO FREQUENCY IDENTIFICATION

1. Just In Time :• Lowers holding cost• Lowers ordering cost• Wal-Mart has made ordering small batches

with greater frequency a profitable reality.• Reduces safety stock and EOQ• Reduces lead time

2. Radio frequency identification• Keep track of goods at any point in time, and

also tells you where it is.• Eliminates physical counting of inventory• Is in line wit JIT.• As soon as inventory levels go down, Walmart

can re-order.• Implemented in 2005.

BEST PRICE outlet at Punjab

Scott Price,President & CEO-Walmart Asia

BEST PRICE LocationsOpened in Amritsar in May 2009 and subsequently in

Zirakpur (Near Chandigarh),JalandharKotaBhopalLudhiana Raipur IndoreVijaywada Meerut, Agra LucknowJammuGuntur Aurangabad Bathinda Amravati Hyderabad and Rajahmundry.

Joint venture between the World’s largest wholesale retailer- Wal-Mart with Sunil Mittal Bharti Enterprises opening India’s first warehouse store- Best Price Modern Wholesale.

It serves grocery store owners, fruit and vegetable resellers, restaurants, farmers and other business owners, including small manufacturers.

BEST PRICE OUTLET

The store sells everything from bed-sheets to ear buds.

It has come up at an initial cost of 4.96 million euros.

It provides 500 direct jobs.

It has tie-ups with 30,000 retailers and 8,000 suppliers across the country.

BEST PRICE OUTLET

Bharti Walmart opens Second Best Price Modern Wholesale Store in Bhopal,MP.

Bharti Wal-Mart has invested close to USD 25 Million in Punjab.

They work closely with farmers to improve the quality of their yield and increase their remunerations.

Also committed to building a strong and efficient supply chain that would benefit the consumer as they save people money so they can live better.

BEST PRICE OUTLET

Spread over 63,000 square feet, the Best Price Modern Wholesale store at Jalandhar will stock over 5,400 items.

Including a wide range of fresh, frozen and chilled foods, fruits and vegetables, dry groceries, personal and home care, hotel and restaurant supplies, clothing, office supplies and other general merchandise items.

These are available at competitive wholesale prices, allowing retailers and business owners to lower their cost of operations.

BEST PRICE OUTLET

THANK YOU

HOPE YOU MAY VISIT YOUR NEAREST WALMART-BEST

PRICE SOON………