Wal-Mart Stores, Inc. Strategic Corporate Research Report

[Excerpt] Wal-Mart Stores, Inc. (hereinafter Wal-Mart) is the second-largest company in the world. It has more annual revenue than the GDP of Switzerland. It sells more DVDs, magazines, books, CDs, dog food, diapers, bicycles, toys, toothpaste, jewelry, and groceries than any other retailer does worldwide. It is the largest retailer in the United States, Mexico, and Canada, the second-largest in the United Kingdom, and the third largest in Brazil, With its partners, it is the largest retailer in Central America. Wal-Mart is also the largest private employer in the United States, Mexico, and Canada, and it has 1.8 million employees around the globe. Wal-Mart is so huge that it effectively sets the terms for large swaths of the global economy, from retail wages to apparel prices to transoceanic shipping rates to the location of toy factories. Indeed, if there is one single aspect to understand about the company, it is the fact that Wal-Mart is transforming the relations of production in virtually every product category it sells, through its relationships with suppliers. But its influence goes far beyond the economy. It sets social policy by refusing to sell certain types of birth control. Its construction of supercenters molds the landscape, shapes traffic patterns, and alters the local commercial mix. The retail goliath shapes culture by selling the music of patriotic country singer Garth Brooks but not the critical (and hilarious) The Daily Show with Jon Stewart Presents America (the Book): A Citizen’s Guide to Democracy Inaction. It influences politics by donating millions to conservative politicians and think tanks. Wal-Mart is, in short, one of the most powerful entities in the world. Not surprisingly, Wal-Mart has developed a long list of critics, including unions, human rights organizations, religious groups, environmental activists, community organizations, small business groups, academics, children’s rights groups, and even institutional investors. These groups have exposed the company’s illegal union-busting tactics, its many violations of overtime laws, its abuse of child labor, its egregious healthcare policies, its super-exploitation of immigrant workers, its rampant gender discrimination, the horrific labor conditions at its suppliers’ factories, and its unlawful environmental degradation. They have also chronicled the deleterious effect Wal-Mart has on the public coffers and the quality of community life. New Wal-Mart stores and distribution centers often swallow up government subsidies and tax breaks, take public land, create more congestion, reduce overall wages, destroy retail variety, and increase public outlays for healthcare. To its critics, Wal-Mart represents the worst aspects of 21st-eentury capitalism. Wal-Mart usually counters any criticism with two words: low prices. It is a powerful mantra in a consumerist world. The company does make more products affordable to more people, and that is nothing to sneeze at when wages are stagnant, jobs insecure, pensions disappearing, and health coverage shrinking. With low prices, Wal-Mart helps working men and women get more from their meager paychecks, more necessities like bread, and more luxuries, like roses, too. It is a brilliant and incontrovertible argument, and Wal-Mart’s most ardent defenders take it even farther. They say its obsession with low prices makes the entire economy more efficient and more productive. Suppliers and competitors have to produce more and better products with the same resources, and that redounds to everyone. In the micro, it means falling prices and rising product quality. In the macro, it means economic growth, more jobs, and higher tax revenues. To its defenders, Wal-Mart represents the best aspects of 21st-century capitalism. Despite their radical opposition, critics and defenders of the world’s largest corporation agree on one thing: Wal-Mart represents 21st-century capitalism. It symbolizes a system of increasing market penetration and decreasing social regulation, where more and more aspects of life around the world are subject to economic competition. Wal-Mart’s success rests upon the ongoing destruction of social power in favor of corporate power. It takes advantage of the conditions of the neo-liberal world, from the availability of instant and inexpensive global communication to the continuing collapse of agricultural employment around the world to the rapid diffusion of technological innovation to the oversupply of subjugated migrant labor in nearly every country to the continued existence of undemocratic and corporate-dominated governments. For some, this is as it should be, all part of capitalism’s natural and ultimately benign development. For the rest of us, Wal-Mart is at the heart of what is wrong with the world

Data Warehousing Implementation and Outsourcing Challenges: An Action Research Project with Solectron

Since the 1980s, Solectron evolved as a contract provider of manufacturing, distribution, product design, and full-service supply chain integration to many Fortune 500 companies in the telecommunications, electronics, and computer industries. In order to achieve this set of capabilities, Solectron established a tightly coupled set of collaborative relationships with supply chain participants- including both suppliers and customers. This action research study explores Solectron\u27s data warehousing implementation and outsourcing experiences to support the organization\u27s strategic direction. We uncover the absence of new set of critical pre-implementation performance metrics for managers and researchers to consider under conditions of outsourcing; multiple, simultaneous projects; and lack of IT internal expertise. Thus, our research offers hypotheses that can be further tested by future research

Automated Purchase Order - Experiments and Expectations in Mid-sized Manufacturing Companies

Operational processes were originally designed before of large-scale information technology revolution in industries. Based on this fact, it has been argued that by redesigning business processes with help of information technology, efficiencies in operational processes may be achieved. Process integration and automation should save valuable time and resources at the same time. However, in small and medium sized businesses limited resources reduce possibilities to implement both information technology and changes in business processes. The research in this area concentrates whether on large corporations (in depth or on large samples) or on small and medium sized companies based on statistical information. Longitudinal and deep analysis on business process change in small and medium sized companies is scarce. In depth analysis on small and medium sized companies in the area is scarce. This research investigates the savings in labour and capital that are achievable through automating and integrating routine purchase process within a supply chain. This study investigated the area of purchasing and especially routine purchasing of direct production materials. Through the use of action research, quantitative and qualitative analysis, a variety of methods are used in order to give a broader view to the data and results. From the practical point of view, the purchase process of production materials is often repetitive work based on information from diverse information systems and sources. This study investigated the possibility of increasing efficiency through automated routine processes. As an indicator of increased efficiency, change in inventory turns was chosen. Three research questions were set: will purchase order automation have an effect on inventory turns, what are the main contributors to any observed changes in inventory turns and are the observed changes relevant in a larger context of small and medium sized companies? For the two first questions action research methodology was used with participant observation. Two projects of purchase order automation were conducted and effects on inventory turns were measured. The automation projects were conducted in a medium sized electronics manufacturing company and with two of its suppliers. A controlling sample was collected from the company item transaction database. These results were analysed with quantitative analysis methods. Thedata includes three samples of data between years 2000 and 2004. Results showed that automation does not clearly improve inventory turns but the results are mixed. Observed changes result from improved parameter setting and change in business conditions. The third question was treated separately through semi-structured interviews within purchase professionals in medium sized manufacturing companies. Four interviews were conducted in 2014-2015 to verify results from purchase automation projects. The answers were analysed with qualitative methods. It was found that the process of automation and its results are relevant to medium sized manufacturing companies. Special care, however, should be taken while implementing the system and setting its basic parameters. From the theoretical perspective, the research emphasizes the assumption that the benefits of business process changes are not always clearly visible but some positive results may be achieved. In regard of human decision-making biases it is clear that they exist and the effects of these biases may be reduced through process automation. The use of several different methods in data collection and analysis opens a larger picture for a deep analysis of the processes and their results. Through action research insights to the actual phenomenon are gained and a longitudinal analysis gives more than a snapshot to it. From the managerial perspective, process automation is an option to consider but at the same time it should be part of a larger process change initiative to see that it does not result into sub optimisation of processes at the expense of general process optimisation of a company. It is crucial to understand the biases made by individual decision makers in business processes and see, how the negative effects of these biases may be avoided through careful consideration of process automation.Automatisoitu ostotilaus – kokeiluja ja odotuksia keskisuurissa valmistavissa yrityksissä Operatiiviset toimintatavat suunniteltiin ennen suurimittaista tietotekniikan vallankumousta eri teollisuuden aloilla. Onkin esitetty, että operatiivisten prosessien tehokkuutta voidaan kasvattaa uudistamalla liiketoimintaprosesseja ja käyttämällä niissä tietoteknisiä sovelluksia. Prosessien integroinnilla ja automatisoinnilla voidaan säästää arvokasta aikaa ja resursseja samanaikaisesti. Pienten ja keskisuurten yritysten kohdalla ongelmana ovat resurssien rajallisuus, mikä vaikeuttaa prosessien uudistamista ja tarvittavien tietoteknisten sovellusten käyttöönottoa. Tutkimus aiheesta rajoittuu joko suuryrityksiin (perusteellinen analyysi tai laajempaan otokseen perustuen) tai pieniin ja keskisuuriin yrityksiin tilastolliseen tietoon perustuen. Perusteellinen analyysi pienissä ja keskisuurissa yrityksissä on tällä alueella harvinaista. Tällä tutkimuksella selvitettiin, voidaanko rutiininomaisen ostotyön prosessin automatisoinnilla ja integroinnilla toimittajien kanssa saavuttaa säästöjä toimitusketjun työ- ja pääomakustannuksissa. Tutkimus tehtiin siis ostotyön ja erityisesti suorien tuotannollisten materiaaliostojen alueella. Käyttämällä toimintatutkimusmenetelmää, sekä kvantitatiivisia että laadullisia analyysitapoja, saadaan laajempi näkökulma käsiteltyyn tietoon ja tuloksiin. Käytännöllisestä lähtökohdasta katsoen on tuotannollisten materiaalien ostotoiminta usein toistuvaa, rutiininomaista työtä, joka perustuu tietoon eri järjestelmistä ja lähteistä. Tuottavuuden nostamiseksi oli kiinnostava tutkia saadaanko rutiinityön automatisoinnilla tehostettua kyseistä prosessia. Varaston kierron muutos valittiin tehokkuuden nousun mittariksi. Tutkimuksessa haettiin vastausta kolmeen kysymykseen: onko ostotilauksen automatisoinnilla vaikutusta varaston kiertonopeuteen, mitkä tekijät vaikuttavat havaittuihin muutoksiin varaston kiertonopeudessa ja ovatko tässä tutkimuksessa saadut havainnot merkittäviä suuremmassa joukossa pieniä ja keskisuuria yrityksiä? Kahden ensimmäisen kysymyksen kohdalla käytettiin toimintatutkimusta ja tutkijan osallistumista toimintaan tutkittavassa kohteessa. Kaksi ostotilauksen automatisointiprojektia toteutettiin ja niiden yhteydessä mitattiin varaston kiertonopeuden muutoksia. Automatisointiprojektit toteutettiin keskisuuressa yrityksessä kahden yrityksen tavarantoimittajan kanssa. Vertaileva otos kerättiin yrityksen nimiketapahtumien tietokannasta. Nämä tulokset analysoitiin kvalitatiivisin menetelmin. Materiaali sisältää kolme otosta vuosien 2000 ja 2004 väliseltä ajalta. Tutkimuksessa todettiin, että automatisointi ei selkeästi parantanut varastojen kiertonopeutta vaan tulokset ovat ristiriitaisia. Havaitut muutokset johtuvat pääsääntöisesti parannetusta järjestelmän parametrien asetuksista sekä muista liiketoimintaympäristön muutoksista. Kolmas tutkimuskysymys käsiteltiin erikseen käyttäen puolistrukturoitua haastattelurunkoa, jonka avulla haastateltiin ostotoiminnan ammattilaisia keskisuurissa valmistavissa yrityksissä. Vuosina 2014-2015 toteutettiin neljä haastattelua, jotta voitaisiin tarkistaa automatisointiprojektien tuottamat tulokset. Haastattelujen vastaukset analysoitiin laadullisin menetelmin. Tuloksena havaittiin, että automatisointiprosessi ja sen tulokset ovat merkityksellisiä keskisuurissa valmistavissa yrityksissä. Erityinen huomio tulee kuitenkin kiinnittää käyttöönottoprojektiin ja järjestelmän perustietojen määritykseen. Teoreettisesta näkökulmasta tutkimus vahvistaa näkemystä siitä, että liiketoimintaprosessien muutoksella saadut hyödyt eivät ole aina selvästi näkyvissä, vaikka joitain positiivisia vaikutuksia voidaan havaita. Inhimillisten päätöksentekoprosessien alttius poikkeamille normaalista vaikuttaa myös ostoprosessiin, ja automatisoimalla ostoprosessia sen negatiivisia vaikutuksia varaston kiertonopeuteen voidaan vähentää. Eri menetelmien käyttö tiedon keräämisessä ja tiedon analysoinnissa antaa laajemman kuvan toimintatapoihin ja niiden tuloksiin. Toimintatutkimuksen avulla voidaan päästä lähemmäs asioiden todellisia syitä ja pitkällä tutkimusjänteellä saadaan enemmän kuin yksittäisiä kuvia tilanteesta. Yrityksen johdon näkökulmasta toimintaprosessien automatisointi on yksi mahdollisuus, mutta sen tulisi aina olla seurausta laajemmasta toiminnan arvioinnista jotta vältytään yksittäisten prosessien optimoinnilta koko yrityksen liiketoimintaprosessin optimoinnin kustannuksella. On myös erittäin tärkeää ymmärtää yksittäisen päätöksentekijän aiheuttamat poikkeamat prosessiin, ja se miten nämä poikkeamat voidaan välttää huolellisella valinnalla siitä, mitä prosesseja automatisoidaan.Siirretty Doriast

An analysis of current supply chain best practices in the retail industry with case studies of Wal-Mart and Amazon.com

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2005.Includes bibliographical references (leaves 184-188).In support of the Supply Chain 2020 Project at MIT, this thesis identifies current best practices in retail industry supply chains, with a specific focus on mass merchandising and Internet retailing. Using a survey of current literature for context and industry expert interviews, this thesis assesses the current state of the retail industry and analyzes case studies of Wal-Mart and Amazon.com to illustrate retail supply chain best practices. Topics covered in each case study include supply chain strategy and business strategy linkage, operating models, supply chain design, replenishment and distribution processes, and ongoing supply chain improvement initiatives. Wal-Mart and Amazon.com are found to have very different supply chains in terms of structure and processes, based on their different operating models. However, there are many supply chain themes that are common among the two companies. Both case study companies have supply chain strategies, designs, and processes that clearly support their business strategies. Additionally, these companies tailor processes to fit specific product and demand profiles, collaborate extensively with supply chain partners, invest significantly in information technology, focus on operational efficiency, and leverage scale to facilitate competitive advantage through supply chain management. Based on the common and unique aspects of Wal- Mart and Amazon.com's supply chains, we provide recommendations for the potential transferability of Wal-Mart and Amazon.com practices within the retail industry and to other industries.by Colby Ronald Chiles and Marguarette Thi Dau.M.Eng.in Logistic

Testing an Internal Supply System in a PIM`s company

This article analyzes the implementation of an internal material supply system in an electronics industry installed at the Manaus Industrial Pole (PIM). This system is a lean internal logistics model with the leveled replacement of materials and defined frequency, facilitating the communication of the people involved and ensuring the efficient use of the productive area. The method used was a practical application adapted from the one proposed by Harris et al. (2004) to control the internal movement of materials. As a result, this paper surveyed the key advantages of adopting the new supply system and identified potential opportunities for improvement

Cloud Computing for Supply Chain Management and Warehouse Automation: A Case Study of Azure Cloud

In recent times, organizations are examining the art training situation to improve the operation efficiency and the cost of warehouse retail distribution and supply chain management. Microsoft Azure emerges as an expressive technology that leads optimization by giving infrastructure, software, and platform resolutions for the whole warehouse retail distribution and supply chain management. Using Microsoft Azure as a cloud computing tool in retail warehouse distribution and supply manacle management contributes to active and monetary benefits. At the same time, potential limitations and risks should be considered by the retail warehouse distribution and the supply chain administration investors. In this research summary of the cloud figuring tool, both public and hybrid in supply chain administration and retail, warehouse distribution is addressed. A brief introduction to the use of Microsoft Azure technology is provided. This is followed by the application of cloud computing to warehouse retail distribution and supply chain management activities. At the same time, the negative and positive aspects of familiarizing this Microsoft Azure technology in the modern supply chain and retail distribution are debated. Also, the circumstance for the third-party logistics services suppliers has indicated respect for automation and cybersecurity solutions in a cloud environment. Lastly, the upcoming research practices and following technological trends are offered as the conclusion

Does Conventional Wisdom Apply? An Enterprise System Sourcing Decision for a Retail Business in Fiji

This case explores a decision to replace a critical enterprise system that the directors of a family-owned and operated retail organization in Fiji (a developing country) faced. The case asks students to assess the risks and potential rewards of enterprise sourcing alternatives for the Fijian retailer. The case sensitizes students to the organizational, environmental, and technological issues that this business faced, such as unreliable and expensive electricity and broadband Internet. Students who reside in developed countries often take some of these issues for granted, and, thus, the case challenges them to consider a broader global context and question the conventional wisdom of solutions such as cloud computing and ERP packaged software benefits for small- and medium-sized businesses

A framework for business process integration to achieve fulfillment excellence

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004."June 2004."Includes bibliographical references (leaves 71-72).Process integration has become more and more important in today's world where companies' supply chains have become more complex. Companies around the world are beginning to realize the importance of integrating their supply chain business processes to achieve fulfillment excellence. Unfortunately, process integration is still somewhat a novel concept and relatively little research has been conducted in examining how companies can effectively implement successful process integration across their supply chains. To complicate matters further, many companies still confuse the concept of business process integration with that of mere data integration. The primary motivation for this research study is to provide a framework on how best to implement process integration to achieve fulfillment excellence. The methodology employed in this particular study comprises the use of two case studies with real-life companies, which provide real-world examples of how companies try to "integrate" their complex supply chain processes. A deep and thorough analysis is then conducted to identify the challenges presented by the firm's current practices from a business process integration perspective. Further analysis then provides an overall view of what is done right and what could have been improved. Last but not least, a generalized framework of best practices and a prescription of how best to implement successful process integration to achieve fulfillment excellence are presented.co-authored by Marcos Buelvas [and] Sonita Lontoh.M.Eng.in Logistic

Engineering Education through Problem Based Learning: a case study of teaching Mechanical Engineering Design in TU Dublin

Undergraduate students, having learnt to quantify the performance of specific elements of engineering objects, often find it difficult to integrate these elements into quite basic design concepts. Employers expect these engineering graduates to be able to do a great deal more than solve the technical problems taught in engineering school once they enter the workforce. To help students meet this expectation by developing real-world engineering skills as part of their engineering education, the Mechanical Engineering Discipline in Technological University Dublin (TU Dublin) introduced Problem Based Learning (PBL) module for Third Year Mechanical Engineering students in 2005. This module was well respected and student feedback, both during their time in TU Dublin and after graduation once they had experience in the field was overwhelmingly positive. A recent review of this teaching approach highlighted deficiencies not envisaged when the initial PBL module was conceived. Examples include students\u27 over-confidence in the ability of their designs to solve the assigned problems and a lack of awareness of how parts designed can actually be made and assembled to form completed systems. Inspired by the Japanese concept of monozukuri significant changes were implemented in 2017. TU Dublin\u27s Mechanical Engineering students now design, build, and test real machines within the constraints of a strict budget and time limit. Since these changes were initiated the problem assigned to students was to construct robots to perform specific functions. This article, based upon previous work by Delaney and Nagle (2019) details the theory behind the changes and reports on specifics of the module structure. It concludes that students are overwhelmingly positive in their evaluation of the changes implemented and, notwithstanding the increased course workload, they believe they are better prepared for their future professional careers