7/28/2019 Wal Mart123

1/27

PRESENTED BY:-

ABHILASH PANIGRAHI

7/28/2019 Wal Mart123

2/27

Introduction Operation Division in Walmart

Material Requirement Planning

Material Requirement Planning in Walmart. Material Requirement Planning 2

Material Requirement Planning 2 in Walmart.

Enterprise Resource Planning.

Enterprise Resource Planning in Walmart.

7/28/2019 Wal Mart123

3/27

Wal-Mart is an American public corporation that runs achain of large, discount department stores.

In 2008 it was the world's largest public corporation by

revenue, according to the Fortune Global 500 for that year.

The company was founded by Sam Walton in 1962,

incorporated on October 31, 1969, and listed on the New

York Stock Exchange in 1972.

Wal-Mart is the largest private employer and the largest

grocery retailer in the United States. It also owns andoperates the Sam's Club retail warehouses in North America.

7/28/2019 Wal Mart123

4/27

Walmart operates in Mexico as Walmex, in the UnitedKingdom as Asda ("Asda Wal-Mart" in some branches),

in Japan as Seiyu, and in India as Best Price. It has

wholly-owned operations in Argentina, Brazil, Canada,

and Puerto Rico.

Wal-Mart's investments outside North America have

had mixed results: its operations in the United Kingdom,

South America and China are highly successful, while itwas forced to pull out of Germany and South Korea

when ventures there were unsuccessful.

7/28/2019 Wal Mart123

5/27

A) Wal-Mart Stores U.S

1. Wal-Mart Discount Stores

2. Wal-Mart Supercenter

3. Neighborhood Market by Wal-Mart

4. Supermercado de Wal-Mart5. Market side

B) Sam's Club

7/28/2019 Wal Mart123

6/27

Wal-Mart Stores U.S. is Wal-Mart's largest division, accountingfor 67.2% of net sales for financial year 2006.

It consists of three retail formats that have become

commonplace in the United States: Discount Stores,

Supercenters and Neighborhood Markets . In September 2006, Wal-Mart announced a new pilot program

to sell generic drugs at just $4 per prescription. While it's little

known outside of the drug industry, many of Wal-Mart's low

cost generics. In India drug are made by Ranbaxy and CIPLA.

7/28/2019 Wal Mart123

7/27

1.) Wal-Mart Discount Stores:-They carry general merchandise and a selection of food. Many

of these stores also have a garden center, a pharmacy, Tire &

Lube Express, optical center, one-hour photo processing lab,

portrait studio, a bank branch, a cell phone store and a fastfood outlet.

2.) Wal-Mart Supercenter:-These stock everything a Wal-Mart Discount Store does, and

also include a full-service supermarket including meat andpoultry baked goods, delicatessen, frozen foods, dairy products,

garden produce, and fresh seafood

7/28/2019 Wal Mart123

8/27

3 ) Neighborhood Market by Wal-mart:-They are used to fill the gap between Discount Store and

Supercenters, offering a variety of products, which include full

lines of groceries, pharmaceuticals, health and beauty aids,

photo developing services, and a limited selection of generalmerchandise.

4) Supermercado de Wal-Mart:-Wal-Mart opened "Supermercado de Wal-Mart" locations to

appeal to Hispanic communities in the United States.

7/28/2019 Wal Mart123

9/27

5) Market side:-Market side is a new chain of grocery stores opened in October

2008, the stores are said to be less than half the size of a

conventional supermarket.

7/28/2019 Wal Mart123

10/27

Sam's Club is a chain of warehouse clubswhich sell groceries and generalmerchandise, often in large quantities.

The first Sam's Club opened in 1983 inMidwest City, Oklahoma under the name"Sam's Wholesale Club".

7/28/2019 Wal Mart123

11/27

Wal-Mart Vision: Do it, try it, and fix it!

Wal-Mart Mission:Give ordinary folks the chance to

buy the same things as rich people.

Core competency:Information technology

7/28/2019 Wal Mart123

12/27

Material Requirements Planning (MRP) are predecessorsof Enterprise Resource Planning (ERP), a businessinformation integration system.

The vision for MRP was to centralize and integratebusiness information.

MRP is concerned primarily with manufacturing materials.

MRP allows for the input of sales forecasts from sales andmarketing.

MRP allows for the coordination of raw materialspurchasing

MRP is a plan-push system, and in contrast toadvanced planning system (a forward scheduling system)it is a backward-scheduling system.

7/28/2019 Wal Mart123

13/27

MRP and its benefits

1.If a company purchases insufficient quantities of anitem or the wrong item, they may be unable to meetcontracts to supply products by the agreed date.

2.If a company purchases excessive quantities of anitem, money is being wasted

3.Beginning production of an order at the wrong timecan cause customer deadlines to be missed.

MRP provide answer for several questions

what items are required ?

how many are required ?

when they are required ?

7/28/2019 Wal Mart123

14/27

Wal-mart uses computerized orderingand scheduling system for manufacturing and fabrication.

It uses bill of materials data, inventory data, and

master production schedule to project what materialis required., when, and in what quantity.

MRP in case ofWalmart phases orders for dependent-demanditems (such as raw materials, components, parts)over a period to synchronize flow of materials and inin-process inventories with production schedules.

7/28/2019 Wal Mart123

15/27

The end item being created. This is

sometimes called Independent Demand, orLevel "0" on BOM (Bill of materials).

How much is required at a time.

When the quantities are required to meetdemand.

Records of net materials available for usealready in stock (on hand) and materials on

order from suppliers.

7/28/2019 Wal Mart123

16/27

It is defined as a method for the effectiveplanning of all resources of amanufacturing company.

This is a development that seeks toaddress some of the shortcomings of MRPi.e Material Requirements Plannings.

This is not exclusively a software function,

but a combination of people skills.

7/28/2019 Wal Mart123

17/27

Dedication to data base accuracy, andcomputer resources.

It is a total company managementconcept for using human resources moreproductively.

MRP II includes the following four major

developments from MRP:

1. Feedback

2. Resource Scheduling

3. Batching Rules 4. Software extension programmes

7/28/2019 Wal Mart123

18/27

MRP-II in walmart includes functions such

as:- Business planning Production planning and scheduling. Capacity requirement planning.Job costing. Financial management and forecasting. Order processing Shop floor control Time and attendance Performance measurement Sales and operations planning.

7/28/2019 Wal Mart123

19/27

MRP 2 in case of walmart alsoincludes final labor and machine

schedule. Data about the cost of production,including machine time, labor timeand materials used are also handledin MRP 2 system when it comes incase of walmart.

7/28/2019 Wal Mart123

20/27

ERP (enterprise resource planning) is an

industry term for the broad set of activitiessupported by multi-module applicationsoftware that helps a manufacturer or otherbusiness manage the important parts of its

business. Which includes:-

Product planning,

Parts purchasing Maintaining inventories

Interacting with suppliers

Providing customer service and tracking

orders.

7/28/2019 Wal Mart123

21/27

ERP can also include application modules forthe finance and human resources aspects of

a business. Typically an ERP system uses or is

integrated with a relational database system.

The deployment of an ERP system can

involve considerable business processanalysis, employee retraining, and new workprocedures.

7/28/2019 Wal Mart123

22/27

Configuration and scalability:-A good retail ERPsystem allows a high degree of customizationand is easily scalable.

Phased implementation support:-This featureallows the software package to be implementedin a step-by-step incremental manner rather

than in one go. Support for advanced functionality:-It is helpful

in the decision making process such asformulating pricing strategies, merchandiseplanning,etc.

Workflow automation and enterprise processmanagement:-This allows the management tomonitor and keep track of the workflow whilealso undertaking the enterprise process

management.

7/28/2019 Wal Mart123

23/27

Lack of price differentiation:-ERP vendors usuallycharge annual license fee that has to be paidperiodically and is independent of the size orprofitability of the company using the ERP.

High installation costs - ERP systems are quiteexpensive to install and maintain.

Non-customized technical support-The callers oftenend up getting replies from the technical supportpersonnel that are inappropriate to theircorporate structure.

Security concerns:-ERP package proves to bedifficult since an ERP package shares a lot of dataamong its various components.

7/28/2019 Wal Mart123

24/27

7/28/2019 Wal Mart123

25/27

Walmart uses a software tool called advanced

planning and optimization, APO. It is used to make a supply chain system cost

effective and integrated.

This tool works on top of all other softwaretools which are used to plan, monitor, andcontrol supply chain activities and controlthem.

APO can effectively be called the brain of asupply chain system.

The present erp technology that the Walmart uses

7/28/2019 Wal Mart123

26/27

The present erp technology that the Walmart usesits termed as RFID technology.

RFID uses low-powered radio transmitters to read

data stored in tags that are embedded with tinychips and antennas.

The users of the technology say such "smart" tagscan store more detailed information than

conventional bar codes, enabling retailers andmanufacturers to track items at the unit level.

The adoption has been slow though because thetags are more expensive than bar coding and

because standards are lacking to ensureinteroperability between tags and data readers.

7/28/2019 Wal Mart123

27/27