Management I nformation S ystem for. Gloria Garza, Tracy Li, Wesley Thomas, Brianna Vela, Destiny Zavala. History and Overview. Created in 1964 by Sam Walton Public corporation that runs large discount department stores and warehouses Is the world’s largest and most profitable retailer
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Gloria Garza, Tracy Li, Wesley Thomas, Brianna Vela, Destiny Zavala
Wal-mart has : Procurement and fulfillment process.
A type of business model.
It is the vendor who monitors the inventory and decides when inventory is running low.
I. Monitors customers’ inventory:
Remote telemetry units
Set levels to trigger call-in
II. Controls inventory replenishment & decides:
When to deliver
How much to deliver
How to deliver
1.Receive customer inquiry
2.Create & send quotation
3.Receive customer purchase order
4.Create sales order
7.Create & send invoice
Vendor Inventory ManagementContinuous Replenishment Process (CRP)
Less resource for inventory management
Assurance that product will be available when required
More freedom in when & how to manufacture product and make deliveries
More uniform utilization of resources
Better coordination of inventory levels at different customer
Better coordination of deliveries to decrease transportation cost
1. EDI problems: Extensive EDI testing should be done to validate the data being sent. Is the distributor sending all the data that should be sent? Is each field populated with the correct data?
2. Acceptance: It's not enough to just sell the concept to senior management; all employees who are involved must be willing participants and fully understand this new way of doing business.
3. Promotions/Events: Lots communication need to be involved. Anything that adds or takes away from the normal ordering pattern must be properly communicated.
4. Customer Base: communication between large customers and manufacturers. Any large customers, either gained or lost, must be communicated to the manufacturer. The distributor must guide the manufacturer on how this will affect sales.
5. Over/Obsolete Stock: An agreement must exist between the manufacturer and the distributor on what to do if an overstock does occur (or in the case of an ordering error). Also, both parties must agree on how to handle obsolete stock.
6. Time: Both parties involved must understand that this is a learning process. Errors will occur. You will probably not have a perfect process in place from day 1
Air products distribution
Carbon black distribution
Department and grocery stores
Inputs and Outputs in the Retail Link System manufacturers.
Input information from barcodes, registers, and warehouse managers
Output response in form of shipping out more inventory or holding inventory in store
Input info from barcodes, registers, and warehouse managers to 3rd party companies
Output response from the companies (if they should keep selling through Walmart, how they should adjust prices, etc.)
Wal manufacturers. -Mart barcode transaction/RDFI transaction
A systematic way of handling the flow of material in Wal-mart’sinventory.
Uses RFID (radio frequency identification)
The barcode scanning allows Wal-mart employees to know how much inventory is in their store.
Barcodes allow employees to known when materials are needed and how many more of each item they need.
When you purchase something at Wal-Mart the barcode is checked at the checkout counter:
Network passes the scanned information to the database.
Subtracts purchase from the total inventory in the supply chain.
Automatically directs store replenishment and supplier purchase transaction.
Barcode label printed at the distribution center tells the order clerk to pull that product from the storage bin and replace it on the conveyor.
Barcode reader automatically routes product along the conveyor to a truck that will deliver it to the appropriate.