Preview

Wal-Mart Distribution Center

Satisfactory Essays
Open Document
Open Document
562 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Wal-Mart Distribution Center
Wal-Marts distribution system is the most advanced in the world. For most products they use the pull system, which simply means that inventory is not moved until a customer buys something and then the system orders a replacement for that item. 85% of the items are picked up at the suppliers warehouse by a Wal-Mart truck and brought to the distribution center. A small amount of products are brought to the store, I think by P&G. Wal-Mart uses cross docking a system they perfected to unload a truck on on end of the distribution center and unpack it’s contents if needed and send them on conveyer-belts to trucks on the other end of the distribution center to be loaded and cent to the stores, (considered customers). Most products are out of the distribution centers in less then a day, and on the shelves with in 24 hours. Trucks arrive at the stores to be unloaded at 12am 2am and 4am. Wal-Marts transportation cost account for 3% of there cost verses 5% for there competitors. They use barcodes and scanners to keep track of goods and find out what it is, were it is going, and how long it has been there. Some items are moved by pallet and others are in reusable boxes. Each distribution center has a place to shower, eat and sleep for the drivers. But only the Wal-Mart drivers.

Every thing can be tracked by a satellite system. Wal-Mart can see real time the bank as the merchandise leaves the store and the numbers move. This product movement is shared with the suppliers so that they can replenish the supplies as needed. if there is a breakdown or a problem with the system, the executives can go to the TV studio and get a message out immediately. Each employee has access to the inventory and a tool referred to as the magic wand (probably a telzon). This device can be used to track inventory and order inventory if needed. Wal-Mart uses this technology to get the items on the shelf that the customer wants in the shortest amount of time.

Wal-Mart works

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Wal- Mart's Smart System

    • 335 Words
    • 2 Pages

    Wal-Mart uses the SMART inventory system which is basically a tracking system that keeps track of all of Wal-Mart’s inventory as well as it automatically reorder products that the store is either low or empty on. The SMART system is though the Telxon which is a 900 MHz wireless handheld terminal equipped with barcode scanners. When the barcode is scanned the number of that item will show up instantly as well as a short description of the products.…

    • 335 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Walmart

    • 6499 Words
    • 26 Pages

    The first Wal-Mart store was opened in Rogers Arkansas in the Year 1962. From Wal-Mart’s company website a common misconception people have in regards to discount retailing is put to rest. That being this was the year it all started, When Kmart, Target, and Wal-Mart first opened. In actuality however, the chain of variety stores Sam Walton owned during the 1950’s faced stiff competition for many regional discount stores. In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, the company grew to 276 stores in 11 states by the end of the decade. Also from the company’s official website, it is important to note that in 1983 the first Sam’s Club members-warehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion. Wal-Mart’s company website states that Today, 7,262 stores and club locations in 14 markets employ more than 1.9 million associates,…

    • 6499 Words
    • 26 Pages
    Powerful Essays
  • Good Essays

    Bcor 2500 - Exercise One

    • 660 Words
    • 3 Pages

    Business Tactics: Wal-Mart believed that revenues could be significantly increased if the company could easily track the movement of goods and stock levels across all distribution centers. With this information Wal-Mart could hire workers to design algorithms to accurately forecast the quantities of each item to be delivered, based on inventories in the store, thereby minimizing stock-outs and increasing sales. Knowing where their products were at all times make it much harder for employees to steal. The company also recognized that labor costs could be significantly reduced by providing employees with easy access to information concerning inventory in stores, deliveries and backup merchandise in stock. This would increase the efficiency of individual employees by making…

    • 660 Words
    • 3 Pages
    Good Essays
  • Good Essays

    • Inbound Logistics: One of the most important reasons for Wal-Mart’s success has been its inbound logistics. Wal-Mart pioneered the development of a hub-and-spoke distribution system. Its central distribution warehouses are strategically located to serve clusters of Wal-Mart stores which lead to minimized shipping times.…

    • 862 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Walmart is also relying on new technology to ensure this service line works. They are utilizing their website to place orders, software to route the orders to the appropriate store and then to the appropriate staff, GPS software to plan the most efficient routes to shop through the store and kiosk systems to hold the orders and dispense them when a customer comes to pick it up. Any delays, shutdown, etc. in any of these systems will cause major problems with the service and will…

    • 1293 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Wal*mart Superstores has developed a very effective cross-dock distribution process. Cross-Docking Distribution Center . Cross-docking favors the timely distribution of freight, a better synchronization with the demand and a more efficient use of transportation assets.Cross-docking is particularly relevant to the retail sector (often within large retailers), but can also be applied to manufacturing and distribution. Its advantages involve a minimization of warehousing and economies of scale in outbound flows (from the distribution center to the customers). Inbound flows (from suppliers) are thus directly transferred into outbound flows (to customers) with little, if any warehousing. Shipments typically spend less than 24 hours in the distribution center, sometimes less than an hour. Cross-docking can be applied to a number of situations. For…

    • 540 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Walmart Study

    • 3451 Words
    • 14 Pages

    Wal-Mart has been a leader in inventory tracking for years. ASA Research (2009) notes that for over twenty years Wal-Mart has been developing and implementing the most efficient supply chain solutions, and that their efforts have catapulted them to the top of the retail industry. Supply chain efficiency obtained primarily through inventory automation techniques such as bar coding and Radio Frequency Identification (RFID) allows Wal-Mart to track and distribute inventory better than any other retailer. Peter & Donnelly (2009), state that a large portion of Wal-Mart’s inventory is shipped to stores within 12 hours of arrival. Wal-Mart’s ability to effectively track, order and distribute inventory shatter the once unbreakable three day turnaround time for inventory. Additionally being able to keep such a close eye on inventory helps keep…

    • 3451 Words
    • 14 Pages
    Powerful Essays
  • Best Essays

    Walmart

    • 2302 Words
    • 10 Pages

    Wal-Mart constantly emphasized its corporate philosophy of strengthening its relationships with employees, suppliers and customers. Building its own transportation systems had allowed Wal-Mart to enjoy transportation cost savings and had helped Wal-Mart to deliver products to its various stores within 48 hours. Taking advantage of its wholly owned transportation capabilities, Wal-Mart was four times faster than its competitors in replenishing its merchandise. The pricing of its products was economical and prices were allowed to vary daily. On the procurement side, owing to the huge volume of its purchases, the company enjoyed strong bargaining power. Reliably low prices of Wal-Mart ensured that sales volumes were consistently elevated. Wal-Mart’s retailing activities were operated by three primary subsidiaries: Wal-Mart International, Sam’s Club and Wal-Mart Stores Division US. In addition, Wal-Mart had nine different retail formats for its businesses: restaurants, cash-and-carry stores, membership warehouse clubs, apparel stores, soft discount stores, bodegas (small markets), supercenters, food and drug stores, and general merchandise stores.…

    • 2302 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Wal-Mart Stores has successfully been operated as a discount store according to their "Everyday Low Price" philosophy since 1970. Exhibit 1 shows analysis of Wal-Mart’s relative costs of 1984. In order to compare in terms of the discount industry, we can use the record of Wal-Mart without Sam’s.…

    • 633 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The most interesting thing about Wal-Mart is how simplistic their idea is, which has created supply chain management. The interesting aspects of the whole idea are how it all comes together. There has been so much obstacle and innovation developed to create the success of supply chain management. The company which controls the database, the company that provides a certain type of software, the LAN connections, interface and the devices and components such as the network hubs which all collaborate to allow employees to access make sense of the information. Wal-Mart has been the pioneer of Supply Chain Management and it would not exist without the network planning and configuration of the Data-Warehouse, Data-Mart and Data-Mining.…

    • 275 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Technology

    • 581 Words
    • 3 Pages

    Today's world management need an extensive variety of factors appropriate for an effective management plan. Walmart Stores, Inc , is the world's largest corporation and number one seller, with this accomplishment this company needs to not only look for internally solutions but to their management objectives as well as look outside of their business for further resources. In addition to the increase of technology and the easy admission to virtually information. Wal-Mart Stores, Inc, commitment is to be prepared to respond to the large quantity of demands made by consumers and suppliers. Wal-Mart Stores, Inc, has accomplished this highly planned advanced inventory tracking system that allows stores, including the internet to have in stock what buyers are searching for. According to "Walmart Business Model Study" Walmart USA alone has more than 4,300 stores employing 1.4 million associates including Walmart discount stores, Walmart supercenters, and Walmart neighborhood markets. In 1962, the first Walmart open in Rogers Ark by 1975 Walmart had more than 125 stores having $340.3 million in sales leasing IBM 370/135 computer systems for the maintenance of inventory for all the merchandise including more than 100 electronic cash registers for the point of sale (POS) data to maintain inventory. In 1983, Walmart planned to begin using bar codes for scanning POS data. In 1984, Walmart associates begin using a Telxon scanner this was used for the scanning a shelf label providing a description of the merchandise. In 1985, Wal-Mart had 882 stores and sales of $8.4 billion. In 1990, a data warehouse prototype was created for store historical sales data and by 1992 Walmart introduces link systems to reinforce supplier partnerships this system offer vendors information on sale trends including inventory levels. In 1996, Walmart makes marketing available via the internet and starts the use of the internet as an application platform launching online stores. On…

    • 581 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Wal-Mart was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price discounts.Instead of cutting the inventory across the board, Wal-Mart made full use of its IT skills to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels.Employees at the stores had the (Magic Wand) a hand-held computer which was linked to in-store stations through a radio frequency network.These helped them to keep track of the inventory in stores, deliveries, and backup produce in stock at the distribution centers.The order management and store replacement of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system.Through this system, it was possible to monitor and track the sales and produce stock levels on the store shelves.…

    • 4084 Words
    • 17 Pages
    Better Essays
  • Better Essays

    The Operations of Wal-Mart as enable them to transform their inputs into outputs during distribution and meeting the demand of its customers. Wal-Mart is the largest retailer in the world and its strategy is to sell high volumes of discounted products (Blanchard, Comm & Dennis, 2008). Wal-Mart Distribution is one of the largest in the world. Once the distribution center is built, stores will be planned and opened around it to gradually saturate the area which serves approximately 150 stores (Blanchard, Comm & Dennis, 2008). The distribution network is realigned to maximize efficiencies every time another center is added to the system and distribution centers combined with Wal-Mart's own private truck fleet allow the company to retain significant control over deliveries (Blanchard, Comm & Dennis, 2008). Wal-Mart is continuously improving its marketing and sales strategies. Wal-Mart uses its own unique strategies to meet the demand of its customers. Wal-Mart challenges the market and is not afraid to venture into new arenas (Blanchard, Comm & Dennis, 2008). From personal experience two weeks ago, the Wal-Mart I shop at placed a new system in which is called “Scan and Go.” You are able to scan your items and bag it while you shop and when you are done scan your portable scanner at the…

    • 922 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Wal-Mart was able to succeed a respectable leadership in the retail industry because of its focus on the supply chain management, which is the active management of activities that will increase customer value and will gain a supportable competitive advantage, it focuses on the effort of the firm to create and produce a chain that is effective and efficient. The activities that the supply chain creates focuses on the product such as the development, tracking, production and the logistics ("What Is Supply," 2017). The distribution system that Wal-Mart adopted was that they always got the goods directly from the manufacturers, they avoided going to suppliers to get the goods. They were also good at negotiating good prices and made sure no…

    • 1807 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Supply Chain Management

    • 7829 Words
    • 32 Pages

    As the world’s largest retailer with net sales of almost $419 billion for the fiscal year 2011, Wal-Mart is considered a “best-in-class” company for its supply chain management practices. These practices are a key competitive advantage that have enabled Wal-Mart to achieve leadership in the retail industry through a focus on increasing operational efficiency and on customer needs Wal-Mart’s corporate website calls “logistics” and “distribution” the heart of its operation, one that keeps millions of products moving to customers every day of the year.…

    • 7829 Words
    • 32 Pages
    Powerful Essays