Wal-Mart pioneered the retail hub-and-spoke distribution system in the 1970s, allowing it to achieve significant cost advantages through centralized purchasing and distribution. It emphasized reducing costs through efficient supply chain practices such as direct procurement from manufacturers, transparency with vendors, and information sharing with suppliers. Wal-Mart made large investments in inventory tracking technologies like barcoding, RFID, and EDI to monitor sales and replenish stock, helping drive its continued growth.
