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By Maha Gul Qazi - Bba 8A

Walmart began in 1962 when Sam Walton opened the first store. Through a focus on low prices, customer service, and convenient hours, Walmart grew rapidly across the US. A key part of its success was implementing an efficient hub-and-spoke distribution system where goods were ordered centrally and shipped to individual stores. This system allowed Walmart to achieve significant cost savings through bulk purchasing and distribution. Walmart also used technology like electronic data interchange to efficiently manage its supply chain and inventory levels as it continued expanding globally.

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59 views

By Maha Gul Qazi - Bba 8A

Walmart began in 1962 when Sam Walton opened the first store. Through a focus on low prices, customer service, and convenient hours, Walmart grew rapidly across the US. A key part of its success was implementing an efficient hub-and-spoke distribution system where goods were ordered centrally and shipped to individual stores. This system allowed Walmart to achieve significant cost savings through bulk purchasing and distribution. Walmart also used technology like electronic data interchange to efficiently manage its supply chain and inventory levels as it continued expanding globally.

Uploaded by

MahaGul Kazi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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RETAIL

SYSTEM
OF
WALMART
By Maha Gul Qazi BBA
8A

INTRODUCTION
an American multinational retail corporation that runs chains of large
department and warehouse stores

Sam Walton ,the founder of Wal-Mart, opened the first Wal-Mart store
in 1962. By 1969, Walton had established 18 Wal-Mart stores.

By late 1970s, the retail chain had established a pharmacy and an
auto service center.

In 1980s, Wal-Mart continued to grow due to huge customer
demands in small towns.

Successful due to its IT usage in SCM
INTRODUCTION
Wal-Mart was offering low prices, customer satisfaction
guaranteed, and hours that were realistic for the way
people wanted to shop.

Open all night, for university students

By 1984, there were 640 Wal-Mart stores in U.S.

Wal-Mart suffered a setback in 1992, when Walton died.
But it continued its growth in the 1990s, focusing on
overseas stores.
REASON FOR GROWTH
This phenomenal growth of Wal-Mart is
attributed to its continued focus on customer
needs and reducing cost through efficient
supply chain management practices
6
HUB AND SPOKE SYSTEM
In the early 1970s, Wal-Mart became one of the first
retailing companies in the world to centralize its
distribution system, pioneering the retail hub-and-
spoke system.

Under the system, goods were centrally ordered,
assembled at a massive warehouse, known as
distribution center (hub), from where they were
dispatched to the individual stores (spoke).
7
HUB AND SPOKE SYSTEM
The hub and spoke system enabled Wal-Mart
to achieve significant cost advantages by the
centralized purchasing of goods in huge
quantities..
and distributing them through its own logistics
infrastructure to the retail stores spread across
the U.S.
8
WAL-MARTS
PROCUREMENT
Wal-Mart emphasized the need to reduce
purchasing costs and offer the best price to the
customer.

The company directly procured from
manufacturers, by passing all intermediaries.
Wal-Mart finalizes a purchase deal only when it
is fully confident that the products being bought
is not available else where at a lower price.
9
USING EDI FOR
PROCUREMENT
The computer systems of Wal-Mart were
connected to those of its suppliers.

Electronic data interchange enabled the
suppliers to download purchase orders along with
store-to-store sales information relating to their
products sold.

On receiving information about the sales of
various products, the suppliers shipped the
required goods to Wal-Marts distribution centers.
10
LOGISTICS MANAGEMENT
An important feature of Wal-Marts logistics
infrastructure was its fast and responsive
transportation system.
The distribution centers were serviced by more
than 3500 company owned trucks.
11
Inventory Management
Wal-Mart invested heavily in IT and
communication systems to effectively track
sales and merchandise inventories in stores
across the country.

With the rapid expansion, it was essential to
have a good communication system.

Hence, Wal-Mart set up its own satellite
communication system in 1983.
12
WAL-MART IS THE WORLDS LARGEST
RETAIL COMPANY

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