Wal-Mart's Supply Chain Management Practices (B): Using IT/Internet to Manage the Supply Chain |
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"We view Wal-Mart as the best supply chain operator of all times. Efficiency is a key factor in maintaining Wal-Mart's low-price leadership among retailers. Their margins can be far lower than other retailers' because they have such an efficient supply chain. The company's cost of goods is 5% to 10% less than that of most of its competitors." - Pete Abell, Retail Research Director, AMR Research, Boston. "Besides spot-on execution, one of the key ingredients of Wal-Mart's break away from the pack has been enabling certain core processes with technology. Wal-Mart has been proactive in using the Internet as a ubiquitous communication infrastructure to drive mega-efficiencies." 1 - Mohsen Moazami, Vice-President of Cisco's Internet Business Solutions Group. "People think we got big by putting big stores in small towns. Really, we got big by replacing inventory with information." 2 - Sam Walton, Founder of Wal-Mart. IntroductionCommenting on the importance of RFID for Wal-Mart, Tom Williams (Williams), a Wal-Mart spokesman said, "We follow what the stores sell, and orders are customized for the stores. For us, tracking inventory is extremely important. RFID is a chance to move to a more advanced system...in our distribution centers. It's somewhat akin to moving from tapping out telegraph signals to moving to the Internet.
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1] As quoted in the article, "iQ Magazine
Leaders 2002: Wal-Mart Internet Business Leaders 2002," by G. Patrick
Pawling, business.cisco.com. |
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