2-Wal-Mart-Supply-Chain.pptVIP

* Inventory Management… pretty darn quick displays The company asked its suppliers to ship goods in store-ready displays called pretty darn quick PDQ displays. Goods were packed in PDQ displays that arrived at the stores ready to be boarded on the racks. Wal-Mart’s employees could directly replace the empty racks at the stores with fully packed racks, instead of refilling each and every item at the racks. * Inventory Management… retail link system In 1991, Wal-Mart had invested approximately $4 billion to build a retail link system. More than 10,000 Wal-Mart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories. Details of daily transactions ~10 million per day were processed through this system. * Inventory Management… retail link system Retail Link connected Wal-Mart’s EDI network with an extranet, accessible to Wal-Mart’s thousands of suppliers. The suppliers could find out how their product was performing vis-a-vis competitors’ products in a particular product category. * Inventory Management… retail link system Wal-Mart owned the largest and most sophisticated computer system in the private sector. The company used Massively Parallel Processor MPP computer system to track the movement of goods and stock levels. All information related to sales and inventories was passed on through an advanced satellite communication system. * CPFR By the mid 1990s, Retail Link had emerged into an Internet-enabled SCM system whose functions were not confined to inventory management alone, but also covered collaborative planning, forecasting and replenishment CPFR . * CPFR In CPFR, Wal-Mart worked together with its key suppliers on a real-time basis by using the Internet to jointly determine product-wise demand forecast. CPFR is defined as a business practice for business partners to share forecasts and results data through the Internet, in order to reduce inventory costs while at the same