OPERATIONS MANAGEMENT OF WALMART

Subject : Production and Operations Management (FSMBFA SII-1)

Presentation Made by : Kunal Gawade (000FSMBFA1617005)

About Walmart Founded by Sam Walton in 1962 Walmart has 11500 retail units under 63

different banners in 28 countries In India, it operates with name of “Best

Price” Largest Private employer It earned revenue of $482.1 Billion for

year 2016.

Source : Fortune 500

Cheap & Best

A1 Quality Clothes Electronics Food & other

Items

Walmart Strategy

Operations Management Operations management refers to the

administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.

OutputsTransformationInput

s

Obtaining Materials

Storage

Shops & Retail Units

Walmart Operations Process

Obtaining Materials

Clothes Electronics related items

Food and other related items

Wage Rate = $ 0.32 per hourSource : Global Union Alliance

2013

Obtaining Materials

Imported Goods

•Ocean Shipping•Tax Benefit

Other Goods

•Transported through Self owned Trucks•Employing around 7500 truck drivers •Having 6100 tractors, 61000 trailers

Storage : Walmart’s Vendor-Managed Inventory Model

 In this model, suppliers access data from Walmart’s information system, such as data on current inventory levels and the rate at which certain goods are sold.

Thus, Walmart saves costs and has no issue for reorder.

Storage :Types and Roles of Inventory at Walmart

1. Finished Goods Inventory2. Transit Inventory3. Buffer Inventory

Storage : Just-in-Time Cross-Docking in Walmart’s

Inventory Management  In cross-docking, suppliers’ trucks and

Walmart’s trucks meet at the company’s warehouses. Goods are transferred from the suppliers’ trucks directly to Walmart’s trucks, which deliver the goods to the stores.

Storage : Walmart’s Measures of Inventory Performance

Walmart uses numerous variables as measures of inventory performance. However, the following measures are the most significant: Inventory turnover Stock-out rate Inventory size

Storage : Managing Inventory across the Supply Chain

1. ABC Analysis

2. Inventory Information Systems

Shops & Retail Units Shop location , layout & size Each Product is noted Categorized Product Low wages

Shops & Retail Units: Low Wages

A Walmart labor is paid : $ 8.81 per hour Working Hours : 34 hours a week FEDERAL POVERTY LEVEL : $ 23550

Source : Global Union Alliance 2013

Any Questions ?

Thank You !