walmart canada corp. - supply chain improvement

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Walmart Canada Corp. GBMP 517 – Final Group Project By: Chandra Vijay Dubey (822-766-275) | Gaurav Maganlal Vasani (824-141-527) Jeff Dagg (823-967-674) | Varun Thakur (823-041-298)

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Page 1: Walmart Canada Corp. - Supply Chain Improvement

Walmart Canada Corp.

GBMP 517 – Final Group Project By:Chandra Vijay Dubey (822-766-275) | Gaurav Maganlal Vasani (824-141-527)

Jeff Dagg (823-967-674) | Varun Thakur (823-041-298)

Page 2: Walmart Canada Corp. - Supply Chain Improvement

Table of Contents

Company Overview Walmart’s Financial

Status Walmart Canada Corp.

Walmart Discount Stores Walmart Supercenters

Walmart’s Supply Chain Warehouse

Replenishment Assembly Replenishment Direct-to-Store SCM

Recommendations

Page 3: Walmart Canada Corp. - Supply Chain Improvement

Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc. (Walmart) operates retail stores in various formats across the world. The retail formats operated by Walmart include discount stores, supercenters, neighborhood markets and other small store formats.

Walmart is headquartered in Bentonville, Arkansas.

Page 4: Walmart Canada Corp. - Supply Chain Improvement

Wal-Mart Stores, Inc.

Internationally, the company has presence in Canada, Argentina, Brazil, Chile, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, China, India, Japan, Mexico, the UK and Africa.

Walmart Canada Corp. is the Canadian division of Walmart.

Page 5: Walmart Canada Corp. - Supply Chain Improvement

Walmart’s Financial Status

Walmart recorded revenues of $469,162 million in FY2013, an increase of 5% over FY2012.

The operating profit of the company was $27,801 million in FY2013, an increase of 4.7% over FY2012.

The net profit was $16,999 million in FY2013, an increase of 8.3% over FY2012.

Page 6: Walmart Canada Corp. - Supply Chain Improvement

Walmart Canada Corp.

Walmart Discount Stores Walmart Discount Stores

are discount department stores with an average store covering about 102,000 square feet.

Walmart Discount Stores carry limited grocery items.

Page 7: Walmart Canada Corp. - Supply Chain Improvement

Walmart Canada Corp.

Walmart Supercenters With the success of both

Walmart in Canada and Walmart Supercenters in the United States, Supercentres concept was introduced in Canada.

Walmart Supercentres stock everything a Walmart Discount Store does, and also include a full-service supermarket.

Page 8: Walmart Canada Corp. - Supply Chain Improvement

Walmart Canada Corp.

Supply Chain Management

Page 9: Walmart Canada Corp. - Supply Chain Improvement

Walmart’s Supply Chain

Walmart uses a 60-foot custom build trailer that allows shipping of 30% more products and helps Walmart achieve it’s sustainability goals.

Walmart tries to minimize inventory through JIT activities. For automatic replenishment and VMI, Walmart uses

‘Inforem’ system; a software developed by IBM.

Page 10: Walmart Canada Corp. - Supply Chain Improvement

Walmart’s Supply Chain Contd.

Delivery of the product from any vendor to a Walmart store is either directly or through a distribution center (DC).

Decision is made on the basis of DEMAND and OUT-BOUND LOGISTICS. In-Bound logistics is not considered.

Page 11: Walmart Canada Corp. - Supply Chain Improvement

Walmart’s Supply Chain Contd.

If the product is sent to a distribution center, the product is processed and sent directly to the store.

No inventory is stored at the distribution center. Distribution Centers uses RFID to identify and

segregate products.

Page 12: Walmart Canada Corp. - Supply Chain Improvement

Walmart Canada Corp.

Supply Chain → Replenishment Process

Page 13: Walmart Canada Corp. - Supply Chain Improvement

Warehouse Replenishment(High Demand High Margin)

Vendor DC Store

Page 14: Walmart Canada Corp. - Supply Chain Improvement

Assembly Replenishment(Medium Demand Low Margin)

Vendor DC Store

Page 15: Walmart Canada Corp. - Supply Chain Improvement

Direct-to-Store Replenishment(Low Demand or Bulky Items)

Vendor Store

Page 16: Walmart Canada Corp. - Supply Chain Improvement

Recommendations

Walmart could use RFID technology to maintain an accurate inventory of the items that are replenished in the stores on a regular basis, which could lead to an increase in sales of those items.

Same technology maybe extended back to e-commerce application.

Page 17: Walmart Canada Corp. - Supply Chain Improvement

Recommendations Contd.

By effectively implementing Electronic Data Interchange (EDI) and bar code scanning, Walmart could use it as potential fulfillment centers for orders received on the Web or from mobile devices.

Walmart could control and improve business processes based on real-time performance data.

Page 18: Walmart Canada Corp. - Supply Chain Improvement

Thank You!Q&A?