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Wal-mart's Supply Chain Management Practices
1. Details of the distribution and logistics system adopted by Wal-Mart.
? Wal-Mart buys products directly from manufacturers, skipping all intermediaries. This way, Wal-Mart can get the goods at lower prices.
? Wal-Mart has its own 40 distribution centers located geographically in the US. It supplies 85% directly to inventory.
? The company uses hand-held computer systems to make the in&outflow of godds easier and more economically beneficial.
? The distribution centers are serviced bij 3500 company owned trucks, making it able to re-store store shelves twice a week.
? Cross docking, supplied directly to customers, bypassing the use of distribution centers and stores.
2. How did IT benefit Wal-Mart's logistics and inventory system?
? The packing department received accurate information about products to be packed. This saved time and unnecessary paperwork.
? It improved the level of efficiency of the distribution center management operations and satisfy customer needs quickly. (use of hand-helds)
? The satellite communication system can provide information about current events in stores and their sales.
? Networking with suppliers with the use of IT.
? Monitor stock levels, so inventory could be adjusted, according to the customer's demands.
? The use of bar coding and radio frequency technology enabled easy order packing and physical counting of the inventories.
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