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MANAGEMENT
INFORMATION SYSTEMIN
WAL-MARTGroup 14
Archana S
Aswathy Chandra
Remya R S
Shruti Suresh
Sowmya M
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MANAGEMENT INFORMATION SYSTEM
A management information system (MIS) is a system
or process that provides information needed to
manage organizations effectively
Management information systems are distinct from
regular information systems in that they are used to
analyze other information systems applied in
operational activities in the organization.
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HISTORY OF WAL-MART
Sam Walton, a businessman from Arkansas,began his retail career when he started work onJune 3, 1940,
He opened a new Ben Franklin franchise inBentonville, Arkansas but called it
"Walton's Five and Dime.
On July 2, 1962, Walton opened the first Wal-MartDiscount City store located in Rogers, Arkansas.
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WAL-MART'S SUPPLY CHAIN
MANAGEMENT TECHNIQUE
Wal-Mart's success is solely due to their efficiency insupply chain management and logistics.
Wal-Mart turns over their inventory on a weekly basis.
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RFID SYSTEM
104 Wal-Mart stores and 36 Sam's Clubs, the companyhas installed RFID readers at the receiving docks at theback of the building, near the trash compactors andbetween the back room and the retail floor.
For the cases of goods that are shipped to the storeswith RFID tags, Wal-Mart records their arrival by readingthe tag on each case and then reads the tags againbefore the cases are brought out to the sales floor.
By using sales data from its existing point-of-salessystem, which is not using RFID, Wal-Mart subtracts thenumber of cases of a particular item that are sold tocustomers from the number of cases brought out to the
sales floor.
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CONTu.
When a case is brought out to the sales floor, thesystem records that it's being put out on theshelves.
When the case is read at the trash compactor, thestatus within the system is changed to "on shelf."
Suppliers can get updates on the location of theirgoods within 30 minutes of the goods movementfrom one part of the store to another with a 98%read rate.
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WAL-MART'S SUPPLY CHAIN MANAGEMENT TECHNIQUE -
RETAIL LINK
Wal-Mart uses Retail Link to provide vendors with theinformation needed to forecast demand for theirproducts
To accurately forecast, Use Retail Link to view thehistorical sales of your product.
Insufficient work without the information provided
from Retail Link,.
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Wall -Marts Retail Link extranet, it has begun tointegrate RFID process, radio frequency identification
data, to the original 7 Wal-Mart stores in Texas.
This technology gives an accurate reading on what itemshave been replenished, therefore not relying on peopleto record the information.
By using this technology it will reduce out-of-stocks byproviding the location of goods with RFID tags.
It helps the retailer by sharing its data with the suppliersautomatically notifying when
items are on the shelves.
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WAL-MART SUPPLY CHAIN
Using the RFID tags, shipments are automaticallyentered into their system, and each department hasa handheld "Telxon" .
Every tag on the shelves is scanned to get on-hands,and when an item is purchased at the register, it isautomatically taken out of their system.
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WAL-MART INTERNATIONAL
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COMPETITIVE ADVANTAGE FROM
INFORMATION TECHNOLOGY
Point-of-sale system : A computerized system that identifies
each item sold, finds its price in a computerized database,
creates an accurate sales receipt for the customer, and storesthis item-by-item sales information for use in analyzing sales
and reordering inventory. Aside from handling information
efficiently, effective use of this information helps Wal-Mart
avoid overstocking by learning what merchandise is selling
slowly. Over 5 year period, Wal-Mart invested over $600 million in
information systems.
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Telecommunications : Wal-Mart use telecommunications to linkdirectly from its stores to its central computer system and from
that system to its supplier's computers.
This allows automatic reordering and better coordination.
Knowing exactly what is selling well and coordinating closely
with suppliers permits Wal-Mart to tie up less money in
inventory than many of their competitors.
At its computerized warehouses, many goods arrive and
leave without ever sitting on a shelf. Only 10% of the floor
space in Wal-Mart stores is used as an inventory area,compared to the 25% average for the industry.
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BAR CODE SCANNNG
The idea of bar code scanning required that industry develop a
universal product code (UPC) system, a standard method for
identifying products with numbers and coding those numbers
as the type of bar code shown in the photo.
The use of bar code scanners made it unnecessary to stamp
the price on every item (except in states that still require this
for consumer protection). This reduced costs but also
eliminated jobs of some of the clerks who formerly did the
stamping.
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CROSS DOCKING
Wal-Mart has invested heavily in its unique cross-docking
inventory system. Cross docking has enabled Wal-Mart to
achieve economies of scale, which reduces its costs of sales.
With this system, goods are continuously delivered to stores
within 48 hours and often without having to inventory them.
The system reduced the handling and storage of finished
goods, virtually eliminating the role of the distribution centers
and stores.
The manufacturer directly forwarded the goods to a place
called the staging area.
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The goods are packed here according to the orders received
from different stores and then directly sent to the respective
customers.
Lower prices also eliminate the expense of frequent sales
promotions and sales are more predictable.
Cross docking gives the individual managers more control at
the store level.
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HUB & 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).
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CONT..
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.
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MAGIC WANDS..
Employees at the stores had the Magic Wand,a hand-held computer which was linked to in-store terminals through a radio frequency
network.
These helped them to keep track of the
inventory in stores, deliveries, and backupmerchandise in stock at the distributioncenters.
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CONCLUSION
Wal-Mart is one of the leading retail chain in
the world and is spread in many countries.
The main reason for their success is theeffective utilization of latest technological
devices and systems for managing the
inventory and supply chain management.
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