Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Wal-Mart - Essay Example

Comments (1) Cite this document
Wal-mart announced in June 2003 that by 1st January 2005 it would implement RFID technology in its supply chain. The initial plan was to have 100 suppliers comply with the change but 129 suppliers responded as none wanted to be left behind. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Read TextPreview

Extract of sample "Wal-Mart"

Download file to see previous pages In the initial stage, Wal-mart was only tracking pallets and cases coming to one distribution center but the plan was to expand to cover 100 suppliers across US by the end of 2006 (Tutorial-Reports, 2005). They would then roll out the technology internationally. The entire plan was based on achieving a completely error-free, fool-proof transparent supply chain. To achieve this, Wal-mart planned to install RFID readers at the distribution centers and stores, and buying equipment for printing tags. The plan envisaged was so intense that suppliers could not escape using this technology. Wal-mart also wanted to gradually work on tracking recalls. The idea behind the entire plan was to gain competitive advantage over others in the sector. Within two months of the deadline indicated by Wal-mart, RFID system was installed at 104 Wal-mart stores. Within 30 minutes the suppliers could obtain the data through its Retail Link extranet website. By the end of February 2005, Wal-mart stores using RFID had received 23,753 tagged pallets and 663,912 cases, and taken over 5 million tag reads (IDTechEx, 2005). However, about half of the top 100 suppliers felt that there was lack of knowledge of RFID integration and hence decided to set up the systems themselves. While it was possible to read the tags on cars and on conveyors in distribution centers, it was difficult to read the RFID tags on fully loaded pallets. Successful reads was only 63% which was not acceptable by Wal-mart. They wanted nothing less than hundred percent. By October 2005 Wal-mart had achieved success to the extent that they could monitor stock levels which resulted in 16% reduction in out-of-stock status. Moreover, the out-of-stock items that carried the EPC could be replenished there times faster than items that were still using the standard barcode technology. It was also possible to avoid excess inventory as manual orders reduced. Based on the initial success Wal-mart set further timelines that by the end of 2006 more than 1000 stores, clubs and distribution centers would be covered under the program. They would have more than 6090 suppliers participating by the end of 2007. They conducted briefings and seminars to share knowledge back and forth. The suppliers that had gone live in 2005 also shared their learning with other organizations. The success of the RFID technology depends upon collaboration with partners and suppliers. This is critical for time-sensitive goods (Songini, 2006). It can enable Wal-mart to look at the items store by store and evaluate the cause of low sales. This would further enable Wal-mart to sit down with the partners and determine how to enhance sales. The value of RFID technology also depends upon the type of product involved. It would help to know how long the perishable goods have been in the supply chain. It can also help tag the response to new products introduced while also preventing theft. However, all their efforts did not fetch the desired results as the public was wary of privacy concerns. Chances of abuse of information from tracking the product tags were high. While the Wal-mart stores could items in the stores in the US, they could not kill the tags at the checkout. What was essential was to have kill switches that would disable the chips at the checkout counters (Tutorial-Reports, 2005a). Wal-mart argues that if the kill switches are installed it could block the radio waves before reaching the RFID reader devices. Moreover, they insist that the RFID tags do not collect any additional information about the customer but the future of the RFID techn ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Wal-Mart Essay Example | Topics and Well Written Essays - 750 words - 1”, n.d.)
Retrieved de
(Wal-Mart Essay Example | Topics and Well Written Essays - 750 Words - 1)
“Wal-Mart Essay Example | Topics and Well Written Essays - 750 Words - 1”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
brant14 added comment 2 years ago
Student rated this paper as
This document saved me today. I liked the content. It was very useful for my business course.


Strategic Audit of Wal-Mart more than 5,000 stores worldwide today. The company’s 2003 revenue, which was in excess of $250 billion, is no small feat, either. B. Strategic Posture Current Mission: Wal-Mart wields its power for just one purpose: to bring the lowest possible prices to its customers. At Wal-Mart, that goal is never reached. The retailer has a clear policy for suppliers: On basic products that don't change, the price Wal-Mart will pay, and will charge shoppers, must drop year after year. But what almost no one outside the world of Wal-Mart and its 21,000 suppliers knows is the high cost of those low prices....
9 Pages(2250 words)Case Study

Supply Chain Management Techniques at Wal-Mart Stores

... years. Wal-Mart is known for its tough bargaining strategies among the supplier while on the same time providing best prices options to its customers. It has posed tough competition for its competitors for each of its functions starting from procurement to the delivery of products. One of the reasons behind Wal-Mart’s huge success is its effective supply chain management strategy. From the procurement to distribution of products Wal-Mart ensures that the cost is managed and the distribution is on time. It has adopted new technologies to meet its supply chain management requirements. It has worked on human resource to prepare them for achieving the organizational goals. The first section of the paper briefly outlines the company background...
7 Pages(1750 words)Case Study

Strategic Management of Wal-Mart

Wal-Mart has adopted various strategies like low procurement cost, low level of inventory, effective inventory management techniques and use of the latest technologies to improve its operations and contact points with customers. It has its own freight system and trucks which supports its aim to ensure the availability of products at the stores.

Wal-Mart is the largest retailer in the world with consistent ranking in fortune 500 lists on top 5 from last many years. Wal-Mart has a low price high volume business model. Apart from these Wal-Mart has been adopting various strategies to keep its strong competitive position in the market. Wal-Mart is known for its tough bargaining strategies among the supplier while at the sam...
10 Pages(2500 words)Case Study

Retail Marketing Plan: Wal-Mart

Wal-Mart boasts of its low-price strategy to capture a steady volume of patrons in each of its outlets. No doubt, Wal-Mart may be considered the most famous retail store in their areas of operation. This is because they have managed to cater to every need of their market, with their wide range of product offers at the lowest possible prices. Customers patronize Wal-Mart stores due to the huge savings that these stores offer. Consequently, this Retail Marketing Plan shall capitalize on this value proposition to ensure that Wal-Mart continues to capture the target market and maintain its place as the preferred retail store in the US and UK

As always, Wal-Mart ensures that it gets the prime spot in every location it intend...
8 Pages(2000 words)Case Study

Improper Organizational and Managerial Policies at Wal-Mart

..., the firm appears to remain unable to create a positive internal culture. Within the modern organization, building optimistic policies to boost staff motivation is a primary element to increased profitability and positive public image. Despite this fact, Wal-Mart requires a new approach to motivation, managing organizational change, and the development of a strong organizational culture in which employees can thrive and be satisfied. Motivational Activities The contemporary definition of motivation is described as a series of environmental and organizational conditions responsible for intense, persistent focus on quality designed to promote desirable employee behavior (Landy & Conte, 2006). Wal-Mart continuously touts its progressive...
7 Pages(1750 words)Case Study

Foundations of Business Computing: Project Income Statement of Maxs Grocery Mart

...Max’s Grocery Mart- Projected Income ment (Enter (Enter Number) (Enter (Enter Faculty Declaration: I, ……………( Student Name), certify that this assignment is my own work, based on my personal study and / or research, and that I have acknowledged all material and sources used in the preparation of this assignment whether they be books, articles, reports, lecture notes, and any other kind of document, electronic or personal communication. I also certify that the assignment has not previously been submitted for assessment in any other course or at any other time in this course, unless by negotiation, and that I have not copied in part or whole or otherwise plagiarized the work of other students and / or persons. I have read the CQU policy...
8 Pages(2000 words)Assignment

Wal-Mart and Unionization

First of all, I will discuss how big Wal-Mart’s business is and how it dominates the US’s and global economy. The Wal-Marts massive and great size, makes it wields barely credible power and economic king. It has driven lesser retailers out of commerce; forced companies to be well-organized, commonly leading these suppliers to move industrial jobs overseas and changed the method that yet large and established productions do business. Wal-Mart has existence or death decisions over all the customer supplies industries that survive in the US, for the basis that it is the number-one supplier-retailer of the majority of customer goods, not still toys, clothes, shoes but home applications, electronic goods, sporting products,...
7 Pages(1750 words)Case Study

Organisational Structure of Wal-Mart, Core Business Values

...system at home and the system at work often causes imbalances leading to tussles between family members. It is also necessary to point out here that additional problems may arise owing to the interests of family members that do not align with the larger interest of the business, which gives rise to friction and may even lead to the division or dissolution of the business (Marshall B. Paisner, 2000). Given the above introductory aspects of a family business, the discussion of a family business will be undertaken through a case study, which will analyze it from several perspectives. For the purpose of the current research, the Wal-Mart group shall be studied on the lines of the family business. The reasons for considering the group are...
6 Pages(1500 words)Case Study

Organization of Marketing for the Wal Mart Chain

...separable from the goods themselves. A theory has developed which represents this fusion of the intangible with what is tangible in the business of trade that can be termed under the service dominant logic theorem. Lusch and Vargo (2007) proposed this theory as a way to frame the marketing of goods so that the consumer experience is incorporated into the sale of a product so that the two ideas have become one entity. This literature review will attempt to expand upon the ideas of Lusch and Vargo (2007) by exploring the varying concepts that other scholars present as well as developing a case study of Wal-Mart as an example of how this concept is put into practice by a retail outlet. Service Dominant Logic According to Lusch and...
10 Pages(2500 words)Literature review

Organizational Behavior Analysis: Wal-Mart

... giant like Wal-Mart itself plus other issues related to the market ("Wal-mart: organizational behavior," ). Organizational Overview: Sam Walton founded Wal-Mart in the year 1962 in the form of a single store in semi-rural Arkansas ("History," ). The business voyage started with three openings; Sam’s club in 1984, then first supercenter and a neighborhood market in 1999. So principally, the company was divided into three basic segments; Sam’s club, Wal-Mart stores, and global openings of the organization, where Wal-Mart was considered as the complete discount store, and superstores and the international organization incorporated all the stores outside the United States. The global segment comprises of operations outside the United States...
6 Pages(1500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Wal-Mart for FREE!

Contact Us