1. LOGO
Wal-Mart supply chain
www.walmartstores.com
Professor: 何正得
Students : 楊氏良, 范氏紅, 阮德盛

2. Background
 Industry: Retailing
 Founded: 1962
 Founder: Sam Walton
 Headquarter: Bentonville,
Arkansas, United States
 Number of locations:
8,970 (2011)
 Area served: Worldwide
 Key people: S. Robson
Walton(Chairman)
Mike Duke
(President and CEO)

3. Background
 Revenue: US$ 421.849 billion (2011)
 Operating income: US$ 25.542 billion
(2011)
 Net income: US$ 15.355 billion (2011)
 Total assets: US$ 180.663 billion (2011)
 Total equity: US$ 68.542 billion (2011
 Employees: Approx. 2.1 million (2011)
 Top U.S. Retail Industry Corporations on the
2011 Fortune 500 ranks Wal-Mart:
- 2010 Rank - 1
- 2009 Rank - 2
- 2008 Rank - 1

4. Mission
 Wal-Mart's advertised mission statement and its
advertising slogan are the same:
"We save people money so they can live better."
 In addition to this mission statement, the
company looks to its founder, Sam Walton for a
company "purpose":
“If we work together, we’ll lower the cost of
living for everyone…we’ll give the world an
opportunity to see what it’s like to save and
have a better life.”

5. Supply chain overview
www.themegallery.com Company Logo

6. Competitive and supply
chain strategies
 Wal-Mart’s competitive strategy is to be
reliable, low-cost retailer for a wide
variety of mass-consumption goods
 Supply chain emphasize efficiency but
also maintain an adequate level of
responsiveness in term of product
availability.

7. Suppliers
 Wal-Mart works hard to ensure that the
products on their shelves meet the unique
needs
 Wal-Mart partners with thousands of
suppliers in every merchandise category
 Maintaining a diverse mix is the key to their
success.
 Wal-Mart outlines the steps a business
owner must take in order to become its
supplier
 Providing supplier training program: Wal-
Mart has begun a new Web-based training
program for Chinese factories that
manufacture products for its stores.

8. Suppliers
Wal-Mart provides some standards for their suppliers:
 Compliance with Laws
 Voluntary Labor
 Hiring and Employment Practices
 Compensation
 Freedom of Association and Collective bargaining
 Health and Safety
 Environment
 Gifts and Entertainment
 Conflicts of Interest
 Anti-Corruption
 Financial Integrity

9. Distribution Center
 Having one of the largest private distribution
operations in the world.
 Having more than 40 Regional Distribution Centers
 Wal-Mart was able to provide replenishment within 2
days against at least 5 days for competitor.
 The inventory turnover rate was very high, about
once every two weeks for most of the items
 They operate 24/7
 There are also distribution centers for specific
product categories such as grocery, jewelry,
pharmacy, apparel/shoes

10. Distribution Center
 Each DC’s size : 1 million square feet.
 It was divided into different sections on the
basis of the quantity goods received
 Inside each DC, more than five miles of
conveyor belts move over 9,000 different lines
of merchandise
 Each DC supports between 75 and 100 stores
within a 250-mile radius
 Each DC had facilities for maintaining personal
hygiene such as shower bath and fitness center.

11. Distribution Center

12. Inventory management
 Wal-Mart maintains an efficient supply chain by
keeping low levels of inventory
 Wal-Mart pioneered cross-docking
 They run an EOQ(Economic order quantity) system
where their demand rates are continuous, frequent,
and known
 Wal-Mart manages an efficient JIT system
 The Wal-Mart EPC(electronic product code) initiative,
launched in 2005, uses RFID solutions to track items
from manufacturer to distribution centers to its
stores.

13. Inventory management:
RFID
 RFID is used to improve
product availability for
Wal-Mart customers.
 Cases and pallets containing
the products will feature EPCs
when delivered to Wal-Mart’s regional
distribution center.
 RFID readers installed at dock doors will
automatically let Wal-Mart’s operations and
merchandising teams as well as suppliers know
this exact shipment of products has arrived and
is inside the building
 Cases will then be removed from pallets and
processed as usual through the distribution
center.

14. Transportation
A Slow Boat from China
Delivers Cars Toys to the U.S.
Trains transport the
Containers to the Distribution
Centers
Trucks also haul the Containers
to Distribution Centers

15. Transportation
 The retailer aims to take over U.S. transportation
services from suppliers in an effort to reduce the cost
of hauling goods
 Wal-Mart will increase its use of contractors, as well
as its own vehicles, to pick up products directly from
manufacturers’ facilities.
 Wal-Mart’s initiative to take over transportation from
its suppliers to its distribution centers and stores:
Wal-Mart has a very large private fleet (6,500
tractors and 55,000 trailers)
 Wal-Mart supports one of the largest trucking fleets
in the United States with over 6650 trucks, 5400 dry
vans, 3900 reefers and logs over 757 million miles
annually

16. Transportation
Fleet Statistics
 7,400 Drivers
 6,537 Tractors
 51,882 Dry Van Trailers
 5,001Reefer Trailers
 80,000 Associates in Logistics
 124 Distribution Centers
 713 Million Miles Driven in 2010
 4 Million Total Store Deliveries Per Year
 1.6 Million Miles Per Preventable Accident

17. Wal-Mart stores
 Wal-Mart Stores serves customers and
members more than 200 million times per
week at more than 9,800 retail units under
69 different banners in 28 countries.
 Wal-Mart builds retail stores only where the
demand is sufficient to justify having
several of supported by DC

18. Wal-Mart stores in US
Description Retail Units Entry
Opened first in 1988
Supercenter 3,002
(Washington, MO)
Opened first in 1962
Discount Store 647
(Rogers, AR)
Opened first in 1998
Supermarkets* 192
(Bentonville, AR)
Small formats** 9
Walmart U.S. 3,850
Opened first in 1983
Sam's Club 610
(Midwest City, OK)
Total U.S. 4,460

19. Wal-Mart stores in US
www.themegallery.com Company Logo

20. Wal-Mart stores in other
countries
Mexico 1,932 Entered November 1991
Canada 329 Entered November 1994
Brazil 496 Entered May 1995
Argentina 67 Entered August 1995
China*** 352 Entered August 1996
United Kingdom 542 Entered July 1999
Japan 415 Entered March 2002
Costa Rica 194 Entered September 2005
El Salvador 77 Entered September 2005
Guatemala 188 Entered September 2005
Honduras 62 Entered September 2005
Nicaragua 67 Entered September 2005
Chile 299 Entered January 2009
India 9 Entered May 2009
Africa**** 337 Entered June 2011
Walmart International 5,366
Wal-Mart Stores, Inc. 9,826

21. Where in the World is
Wal-Mart?
www.themegallery.com Company Logo

22. Supply chain issues
 The company was tired to apply the same
standards it used in The United States with
local suppliers
 Some local suppliers either refused to give
special discount or to sell products to Wal-
Mart
 Some producers rejected delivery system;
they refused to send goods to Wal-Mart
distribution center

23. Conclusion
Wal-Mart 2011 annual report :
Every week around the world, Wal-
Mart’s 2.1 million associates work
diligently to help more than 200
million customers save money so they
can live better

24. Thank you very much!