Scm Through It in Wal-Mart

1b) Supply Chain Functions managed through IT by Wal-Mart

Information Management

In 1977, Wal-Mart set-up a computer terminal network (CTN) to establish a communication link between its stores and the company headquarters. The CTN enabled the stores to send across and receive messages relating to all its business operations in real time. In 1983, Wal-Mart installed the point of sale (POS) scanning system in 25 Wal-Mart stores, subsequently; the bar code system was expanded to all Wal-Mart stores across the US. In 1987, Wal-Mart installed a satellite communication system (SCS), believed to be the largest privately managed system in the US, at an estimated cost of $750 million. The system established virtual communication links between all Wal-Mart stores and distribution centers with the company headquarters, through a two-way voice and data and one-way video communication. Wal-Mart had established state-of-the art SCM systems, using the most advanced communication technologies to link its retail stores, distribution centers, headquarters and all its suppliers and was able to establish a strong Information management function by the help of IT .

Purchasing:

Subsequently, communication links between Wal-Mart and its suppliers were established through EDI that enabled the company to place orders electronically to the suppliers. EDI not only reduced the order processing time, but also enabled the distribution centers to appropriately plan the dispatch of goods to the stores. . In 1983, Wal-Mart introduced the electronic purchase order management system.

Planning & Forecasting:

Retail Link application connected Wal-Mart's EDI network with an extranet, accessible to Wal-Mart's thousands of suppliers. It provided suppliers with historical sales data of their products for past 24 month period; allowed them to track the status of their invoice; conduct further analysis of the data, and make demand forecasts for their products for the next...