Monday 25 April 2011

WALMART INVENTORY MANAGEMENT SYSTEM

HISTORY OF WALMART
Walmart serves customers and members more than 200 million times per week ar more than 9005 retail units 60 different banners in 15 countries. It was founded in 1962,with the opening of the first Walmart discount store in Rogers,Ark. It incorporated as Wal-Mart Stores,Inc., on October 31 1969. The company's shares began trading on OTC markets in 1970 and were listed on the New York Stock Exchange two years later.
Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Walmart more than 40 years ago. Walmart works hard every day in all its markets so as to deliver on this promise. Because of the level of integrity and respect it possesses Walmart continues to make a difference in the lives of its customers. members and associates.


INVENTORY SYSTEM
Walmart alone stocks items in more than 70 countries, according to its corporate website. At any given time, the Arkansas-based retailer manages an average of $32 billion in inventory, reports Supply Chain Digest. With these kinds of numbers, having an effective inventory control system/ inventory management system, is imperative. Walmart's system helps it maintain its signature "everyday low prices" by telling store managers which products are selling and which are taking up shelf and warehouse space.It uses a computerized system that identifies each item sold together with its price and in result creating n accurate sales receipt for the customer.
The computerized system made of a database is enormous because the Wally keeps track of so many products. All of which must be in the same database because products we do not carry will still scan and give us all the relevant information. It is also linked to the cash registers. When a product is sold, inventory is updated automatically.On hand counts are updated and on some products they are reordered automatically, depending on how many are left.

BENEFITS OF THE SYSTEM
1. Because of the better coordination this system has, the suppliers are able to have a more consistent manufacturing operations at lower costs and hence passing some of the savings to walmart.
2.Low discount pricing ensures that the sales are high and consistent with daily operations.
3.Goods do not take a long time in the shelves as the inventory system is able to identify which products the customers are interested in so this result in Walmart using less floor space and warehousing.

No comments:

Post a Comment