A case study of IT integration in the SCM best practices of Walmart. Outcomes and learnins of Mattel and recommendations.

1. A Case Study
Presenters
TV, Shreeharsha; M,Dev; S,Mritunjay;
S,Upendra; S,Ramendra

2.  Walmart is a Multinational Retail chain.
 Walmart has an envious supply chain management
that changed the way business is done.
 Mattel Inc. encountered a new experience when
dealing with Walmart.
 This case talks about the Best practices by Walmart in
IT integrations to ensure efficiency and effectiveness of
Supply chain.
 The case also presents Mattel’s Learnings and Drawigs
from doing business with Walmart.
TVS, New Delhi
11/25/2013

3.  Company Founded by Sam Walton in 1962 and
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Incorporated in 1969.
Opened its First distribution center in Bentonville,
Arkansas in 1970.
Walmart Corporation goes Public in 1972.
By 1987 there were 1,198 stores with sales of $15.9
billion and 200,000 associates.
Walmart Entered South America in 1995 and Europe
in 1999.
Till date Walmart remains a family-owned business.
TVS, New Delhi
11/25/2013

4.  The company is the world's second
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largest public corporation.
Walmart is Headquartered in
Bentonville, Arkansas, United
States
With over two million employees,
and is the largest retailer in the
world.
Walmart has a reported Revenue of
US$ 469.162 billion for the FY 2013.
S. Robson Walton is the Chairman
and Mike Duke is the designated
CEO.
TVS, New Delhi
11/25/2013

5.  Supply chain and Inventory
management are key aspects of
retailing.
 Walmart being the largest retailer
in the world needed the best
strategic systems in place.
 Efficiency in Information
Systems for inventory
management and supply chain
was required.
 Planning and Information
Sharing was needed for effective
functioning of collaborations.
TVS, New Delhi
11/25/2013

6.  Walmart Invested early and heavily in building IT
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infrastructure.
RFID and µChips replaced bar codes and security tags.
Online operations were started by retailing on their
website.
Collaborative Planning, Forecasting and
Replenishment techniques were used to develop the
Just In Time(JIT) Inventory program.
JIT inventory program meant less storage , less excess
and less wastage.
TVS, New Delhi
11/25/2013

7.  Walmart introduced Data Sharing for the first time.
 Data sharing with Suppliers was thought to be risky
by conventional Supply Chain systems but Walmart
saw a reward in this.
 Buy-ins increased as data sharing was perceived as a
collaborative action that helped everyone.
 Information about Sales, Geography, Sale Rate and
Customer reaction gave a technical edge to selling.
 The CPFR program allowed partners and suppliers to
study the state of Inventory and Plan better.
TVS, New Delhi
11/25/2013

8.  Working with Walmart, Mattel has
Experienced and Understood the fruits
of IT integration and Information
sharing.
 Mattel Plans to Implement Walmart’s
model of Information sharing , JIT
inventory increasing and
Manufacturing efficiency.
 Mattel’s wants to execute this IT infra
implementation in phases.
 While Inhouse supply chain
optimization is half way there, the
reminder would be understanding and
processing customer data.
TVS, New Delhi
11/25/2013

9.  Mattel could start by investing in creating an ERP
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solution.
Implementing ERP would give an Integrated IT
solution to efficient managing of information and
inhouse operations.
Developing Web based CRM and PRM solutions will
make interaction easy .
Implementing JIT inventory would decrease Inventory
related overheads.
Creating Sharepoints with Dealers, Suppliers and
Customers will help reduce transaction lag.
TVS, New Delhi
11/25/2013

10.  By investing early in IT, Walmart has gained a significant
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technological edge over its competitors.
Rewards of Information sharing has proved to be worth
the risk.
JIT inventory, CPFR program and other Technological
investments have proved to reduce business turn around
cost and increase profits and overall turn over.
Mattel like many other companies chose to follow
Walmart’s lead and invest in IT infrastructure to boost its
operations and Supply chain management.
The decision to invest in IT needs to be carefully backed by
sufficient research and understanding of the requirements
and proposed solutions to prove fruitful.
TVS, New Delhi
11/25/2013

11. 1. Do you agree that Wal-Mart is “the best supply chain operator of all time”? Why or why not?
2. What has Mattel learned from Wal-Mart? How well are they applying it to their own business?
Explain your evaluation.
3. What can other businesses learn from the experiences of Wal-Mart and Mattel that could improve
their supply chain performance? Use an example to illustrate your answer.
TVS, New Delhi
11/25/2013