Analysis of Successful Cases of Wal-Mart’s Logistics Model

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Wal-Mart was the world’s first corporate logistics communications satellite to launch a logistics communications satellite, which enabled Wal-Mart to develop by leaps and bounds, and soon surpassed the leaders of the US retail industry-Kmart and Sears. Wal-Mart started in the country, while Kmart and Sears. Strategically focus on large, medium and small cities. Wal-Mart rushed to catch up with convenient information technology and finally succeeded. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Establishing the world’s first logistics data processing center Wal-Mart is the world’s first to realize 24-hour computerized logistics network monitoring within the group, integrating procurement, inventory, ordering, distribution and sales. For example, when a customer goes shopping in a Wal-Mart store, and then prints an invoice through the POS machine, the information will be displayed on the computer of the person in charge of the production plan, the purchase plan, and the supplier at the same time, and each link will use the information to complete their work in time. Thereby reducing a lot of unnecessary time waste and speeding up the circulation of logistics. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

How to make use of ITKDt Chengdu logistics network (028-56.com) Chengdu freight network

How does Wal-Mart Logistics use information technology? In the 1970s, Wal-Mart established a logistics information system MIS (management information system), also called management information system. This system is responsible for processing system reports and speeding up operations. In the 1980s, it cooperated with Hughes to launch a logistics communication satellite. In 1983, it adopted a POS machine, the full name is Point Of Sale, which is the point of sale data system. In 1985, EDI, the electronic data interchange system, was established to carry out paperless operations, and all information was operated on computers. In 1986, it established QR, called the rapid response mechanism, to quickly stimulate demand in the market. Relying on these information technologies, Wal-Mart has become even more powerful and has made considerable progress. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

IT means used in logistics KDt Chengdu logistics network (028-56.com) Chengdu freight network

Information technology used by Wal-Mart Logistics: KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Radio frequency technology/RF (Radio Frenquency) can be combined with barcodes in daily operations. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Portable data terminal equipment/PDF. After the goods arrive in the traditional way, you need to call, send E-mail or send a report, and you can directly check the status of the goods through the portable data terminal device. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Logistics barcode/BC. Here we should pay attention to the difference between logistics barcodes and commodity barcodes. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

The magical distribution center KDt Chengdu logistics network (028-56.com) Chengdu freight network

How does Wal-Mart establish a distribution center KDt Chengdu logistics network (028-56.com) Chengdu freight network

The distribution center is set up in the central location of more than 100 retail stores, that is, the distribution center is set up in the main sales market. This allows a distribution center to meet the needs of more than 100 sales outlets in nearby surrounding cities. In addition, the transportation radius is basically relatively short and relatively uniform. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Establish a distribution center with 320 kilometers as a business district. Operation method adopted by Wal-Mart’s distribution center. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

One end is the loading platform, and the other end is the unloading platform. The distribution center is a large warehouse, but it is conceptually different from the warehouse. One end of the distribution center is the loading platform, and the other end is the unloading platform. The two operations are separated. It seems that there is no difference with the way of loading and unloading, but the operation efficiency is greatly improved. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Cross Docking CD (Cross Docking). The cross-distribution operation method is very unique and highly efficient. When the goods are received, they are directly loaded and shipped without storage and sorting operations, which reduces costs and accelerates circulation. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

800 employees work shifts 24 hours a day for loading, unloading, handling and distribution. The wages of Wal-Mart workers are not high, because these workers are basically junior high school students and high school students, but they have only received special training from Wal-Mart. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

The product stays in the distribution center for no more than 48 hours. Wal-Mart sells tens of thousands of products, including food, clothing, housing, use, and sales. In particular, the residence time of commodities such as food and fast-moving consumer goods directly affects their use. How does Wal-Mart continue to improve the organizational structure of its distribution center. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Each store delivers goods once a day (competitors once every 5 days). Delivery at least once a day means reducing inventory in stores or retail stores. This has greatly reduced the cost of retail space and manpower management. To achieve such a goal, it is necessary to continuously improve the organizational structure so that an operation mode can be established to meet such needs. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

There were 14 distribution centers around the world in 1990, and a total of 70 distribution centers were established in 2001. As a Fortune 500 company, Wal-Mart has only operated in a few countries so far. It only operates in areas where it sees development. Wal-Mart is very cautious in its operations. Under such circumstances, it has grown to 70, which shows its logistics. The organizational structure adjustment of the distribution center is relatively well done. KDt Chengdu Logistics Network (028-56.com) Chengdu Freight Network

Distribution costs account for 2% of sales, which is 50% of competitors (while competitors only have 50% of their goods distributed in a centralized manner). Wal-Mart’s distribution costs account for 2% of its sales. Generally speaking, logistics costs account for about 10% of total sales, and some food industries even reach 20% or 30%. Wal-Mart’s consistent thinking is to sell the best things to consumers at the lowest prices, and this is where its success lies. In addition, competitors generally only carry out centralized distribution of 50% of their goods, while more than 90% of Wal-Mart’s goods carry out centralized distribution, and only a few can be directly delivered to the store from the processing plant, so the cost is much different from that of the opponent.

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