This research aims to evaluate and present Management Information Systems at Wal-mart. The research will begin with the brief Overview of Wal-mart, Role of Management Information Systems in Wal-mart’s success and Wal-mart’s Inventory Management System…
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The intention of this study is Wal-mart as the largest retail company in the world that has been on the top of Fortune’s 500 list for several years. It is also the largest employer in the world. Wal-mart deals in general merchandise as well as specialized product lines such as pharmacy, tire and lube express and photo processing. Wal-mart sells high quality branded products to its customers at the lowest prices. Wal-mart achieves this seemingly contradictory combination right using advanced management information systems. In addition, it makes special long term contracts with big suppliers and removes middlemen. The basic idea behind Wal-mart’s business is discount merchandising that is keeping margins low by selling at a large discount but improving the top-line by selling a very large volume of products. In realizing Wal-mart’s corporate strategies in practice, management information systems have played the most significant role. Wal-mart’s supply chain is considered the best in the world due to a very efficient use of information technology. This is the company’s core competency. Wal-mart has been a pioneer of many supply chain management practices based on advanced information systems. The use of RFID (Radio Frequency Identification) is the biggest and most recent of these. The following sections discuss the use of management information systems used by Wal-mart and the strategic advantages derived by the company as a result of them. 3. Wal-mart’s Inventory Management System Wal-mart uses an inventory management system called Retail Link. This system allows the suppliers to have a look at the number of products of each type at the shelves in each retail store of Wal-mart at any given time. In addition, the system gives information about the sales rate for any period say an hour, a day, a week or a year. The suppliers also get real time information about the time of the day their products sell, the accompanying products which it sells and other details. All this information helps the supplier companies in efficient inventory management. In many cases, Wal-mart leaves the stock decisions entirely to the supplier companies. This saves considerable costs in administration. The inventory risks such as stock-outs are hence transferred to the suppliers. This leads to a significant cost reduction (PriceWaterHouseCoopers, 2010). 4. Channel Partnership with big companies through information systems Wal-mart has forged several strategic partnerships with major supplier companies. These partnerships have been facilitated by modern information systems and flawless execution. A prominent case study is the strategic partnership between Wal-mart and Procter & Gamble. Both the companies are major players in their sectors. They have developed a common supply chain information sharing channel to better co-ordinate the supply chain activities. What began as a data sharing activity slowly permeated through strategic, operational and tactical levels in the two organizations. For achieving their objectives, Wal-mart and P&G together came up with a data highway that allowed the companies to share information on sales at all stores, types and time of sale, shelf information and so on. This drove down costs of both companies and increase customer satisfaction. The conceptual diagram for the data highway is shown in Figure 1.4.1. Figure 1.4.1: Channel Partnership Data Highway between Wal-mart and P&G Source: Grean, Michael; Shaw, Michael J. Supply Chain Integration through Information Sharing: Channel partnership between Wal-mart and Procter & Gamble In this approach, Wal-mart used scanners inside its retail stores to study their own business. The observations were critically analyzed. P&G used consumer buying patterns and compared it with the customer information available from market research or other activities. All the information collected and analyzed by the two companies was collected. This led to
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This research will begin with the history of Wal-Mart Company and describe products and services that are provided by Wal-Mart. Then the paper examine the supply chain that is a critical factor for the businesses because it forms an integral part of the business strategy and is also a costly activity especially in the retail industry.
The emphasis of the case is on the problems faced by the Wal-Mart in the international markets. Few years back, Wal-Mart entered into the China’s market and this example has been quoted to study the problems faced by Wal-Mart in its supply chain when it expands its operations in the international markets.
The technological advancement in the field of business has leaped the mode of business operations to a new level. Business can be done in a more effective and accurate manner. Organizations tend to adopt the technological mode of operations either as a first mover’s advantage or to follow the on-going trends in the market.
This paper analyzes the Wal-Mart's supply chain management. The substantial lead of Wal-Mart has been accorded to its effective management of the supply chain which is the focal point of the discussion. However, by 2006 rivals beginning to adopt similar management practices to Wal-Mart were catching up and Wal-Mart.
Thus, with the integration of information technology, Wal-Mart seeks to develop an efficient system whereby the customer gets goods at the shortest time possible. Wal-Mart delivery services take two days, as opposed to other supply chain stores which take five days to deliver.
Upon review of the information in the study, it is clear that the company has a focused strategy regarding cost management. In fact, Wal-Mart specifically seeks innovative and aggressive ways to control costs within its own operating systems, as well as aspiring to be the market leader in low-cost product offerings to the public.
3-4, 11). Wal-Mart is ranked as the largest retail company on the Fortune 500 list (Ball et al, 2005, p. 407), with more than 2,700 stores, and 18% annual growth (Wal-Mart Stores, 2006).
Today, Wal-Mart's strong international position in the retail industry is based on effective organizational processes to perform critical activities that have remained unmatched by competition.
Besides, uncovering the reasons behind the popularity and prominence of Wal-Mart as a customer-oriented super-shop has also taken a significant place in the present study. The study also attempts to erect an entire organogram of Wal-Mart concerning its transaction process dealt between the Stakeholders in the Wal-Mart business Shareholders, Suppliers, Distributors, Dealers, transportation, Bankers, Advertising/Marketing/Market research agencies and impact upon them arising out of its business.
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hniques of information technology in the business and corporate structures is to improve the overall corporate performance and enhance management of the business data. The implementation of management information systems is excellent use of information technology. The
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