It is
impossible to talk about best practices of inventory management without
mentioning the retail giant Walmart and its success. It established itself as a
pioneer in supply chain management.
Over 20 years ago, Walmart adopted the UPC bar codes and revolutionized the industry;
it also pioneered the use of electronic data interchange (EDI) for computerized
ordering from vendors. Its hub-and-spoke distribution network ensures goods are
brought to distribution centers around the country and then directed outward to
thousands of stores, each of which is within a day’s travel. Through the use of
cross-docking, one of its best-known innovations, half the goods trucked to a
distribution center from supplier’s ship to stores within 24 hours. The other
half, called “pull stock,” is stored at the distribution center until needed at
stores.[1]
It has become significantly important to monitor the
supplies and forecast the demand based on the POS purchase. Every retailer now
has an inventory tracking that updates the stock quantities in real time each time
a purchase is done at the register. Sometimes reports are sent to the vendors
or the direct suppliers of goods for them to do a market and consumer demand
analysis of their products.
However Walmart was the first to do this and remains
the leader in supply chain, what it did differently was not just rely on
technology .The company has a sprawling network of nearly 160 distribution
centers covering almost 120 million square feet and all within 130 miles of the
stores it supplies, according to MWPVL International, a supply chain and
logistics consulting company. About 81% of Walmart merchandise passed through
those centers in 2013.[2] Walmart uses its own truck
fleets and drivers and accepts a minimum of three years of incident free
driving experience etc. These factors also add on to build the robustness of the
empire.
 |
| Walmart Replenishment Process |
In my experience of working with a Manufacturing
Client and enabling them to track their products via mobile apps, I have noticed
that inventory tracking is one of the prime requirements of this industry. How
each organization executes it, how much investment goes into this functionality
determines its success.
Today we have custom made vendor solutions available
to serve this need, then what will be the competitive edge for these pioneers? Or
are inventory management solutions becoming a commodity in today’s era ?
[1] Mike Troy, “Wal-Mart’s Inventory Equation,” Drugstore News, September 11, 2006; “Financial Outlook:
Restoring the Productivity Loop,” Retailing Today, June 26, 2006.
[2] http://www.usanfranonline.com/resources/supply-chain-management/walmart-keys-to-successful-supply-chain-management/#.VGEFBMmsmQI
Image Source : http://3.bp.blogspot.com/-zlq1SX7A4Vc/UKx1u8e3GvI/AAAAAAAADNI/O6pmTz_AO6s/s1600/Walmart+Replenishment+Process.png
We pride ourselves on using only the highest quality packing products to insure your personal belongings, which we know mean very much to you, stay safe and in one piece. We are experts in transporting goods and using our specialist knowledge can move any manor of items for little cost, and highest quality. You can take assurance in the knowledge that your items will arrive with you, just as they were when they left.
ReplyDeleteMovers And Packers Kolkata
Packers And Movers in Kolkata
Packers And Movers Kolkata Salt Lake