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深圳面点王饮食连锁有限公司首次公开发行A股项目建议书
深圳面点王饮食连锁有限公司首次公开发行A股项目建议书
Wal*Mart’s Use of Connectivity to Drive Supply Chain Efficiency
CONFIDENTIAL
eOperations Practice
Case Study
May 2001
This report contains information that is confidential and proprietary to McKinsey amp; Company and is solely for the use of McKinsey amp; Company personnel. No part of it may be used, circulated, quoted, or reproduced for distribution outside McKinsey amp; Company. If you are not the intended recipient of this report, you are hereby notified that the use, circulation, quoting, or reproducing of this report is strictly prohibited and may be unlawful.
WAL*MART – BACKGROUND
Business overview
America’s largest retailer serving customers primarily through the operation of
Wal-mart stores (discount department stores)
Sam’s Clubs (warehouse membership clubs)
Wal-mart Supercenters
Sales of nearly $191 billion in the fiscal year ending Jan. 31, 2001
Employs more than 1 million associates worldwide through nearly 3,500 facilities in the United States and more than 1,000 units in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany and the United Kingdom
Business technology agenda
Using IT to reduce supply chain costs and improve operations efficiency
Using IT to enable Wal*mart to deliver its promise of everyday low prices
Source: Annual reports
WAL*MART VALUE PROPOSITION AND BUSINESS SYSTEM
Broad SKU selection
Emphasis on high frequency items
Centralized buying with regional tailoring
Product selection
Vendor Management
Ruthless negotiator, hard bargaining – able to squeeze the best price from suppliers
Vendor partnerships to reduce interface costs
Distribution/ Logistics
Retail/
Store format
Selling
Stores clustered around DC’s
Force vendors to DSD (direct-store-delivery)
No inventory at stores, vendors responsible to use, sit or hold extra stock
Every day low pricing
Pricing/ merchandising decisions decentralized to store managers to tailor to local needs
Stores sale data uploaded hourly for forecasting/ repl
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