operation management wal-mart

36

Upload: dhaval-gurnani

Post on 05-Dec-2014

7.093 views

Category:

Business


0 download

DESCRIPTION

This presentation is on the Operation Management by Wal-mart.It includes Introduction,Operation Strategies,

TRANSCRIPT

Page 1: Operation management wal-mart
Page 2: Operation management wal-mart

A Presentation by

Dhaval GurnaniK.S.School of Business Management

Year-2012-13

Page 3: Operation management wal-mart

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.

Page 4: Operation management wal-mart

HEADQUARTERS--Bentonville,Arkansas.

Page 5: Operation management wal-mart

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.

Page 6: Operation management wal-mart

WALMART SLOGAN

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

Page 7: Operation management wal-mart

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

To become the worldwide leader in retailing

Page 8: Operation management wal-mart

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.

Page 9: Operation management wal-mart

OPERATION STRATEGY

Page 10: Operation management wal-mart

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

Page 11: Operation management wal-mart

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

Page 12: Operation management wal-mart

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

Page 13: Operation management wal-mart

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

Page 14: Operation management wal-mart

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

Page 15: Operation management wal-mart

SHELF MANAGEMENT AT WAL-MART

Page 16: Operation management 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

Page 17: Operation management wal-mart

• 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

Page 18: Operation management wal-mart

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

Page 19: Operation management wal-mart

PRODUCT AND SERVICE FACTOR

Page 20: Operation management wal-mart

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

Page 21: Operation management wal-mart
Page 22: Operation management wal-mart

Walmart’s Method of Managing the Supply Chain

Page 23: Operation management wal-mart

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

Page 24: Operation management wal-mart
Page 25: Operation management wal-mart

• 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

Page 26: Operation management wal-mart

JUST IN TIME & RADIO FREQUENCY IDENTIFICATION

Page 27: Operation management wal-mart

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

Page 28: Operation management wal-mart

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.

Page 29: Operation management wal-mart

BEST PRICE outlet at Punjab

Page 30: Operation management wal-mart

Scott Price,President & CEO-Walmart Asia

Page 31: Operation management wal-mart

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.

Page 32: Operation management wal-mart

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

Page 33: Operation management wal-mart

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

Page 34: Operation management wal-mart

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

Page 35: Operation management wal-mart

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

Page 36: Operation management wal-mart

THANK YOU

HOPE YOU MAY VISIT YOUR NEAREST WALMART-BEST

PRICE SOON………