wal mart owner Sam walton

Wall mart official website

http://www.walmart.com/

Wal-Mart MIS

Likes Vs. Dislikes about the company’s use of information systems

§  Likes:

·        The company was able to use IS in a way that no other company could, it uses information system to help maximize the profit and cut the costs of both inventory and workers' salaries since information system is helping also in cutting the number of workers and save time.

·       The company was able to built a efficient way in communicating with suppliers which helped building a strong base of suppliers who were more the happy to do business with Wal-Mart .

§  Do not like:

·        Wal-Mart is completely depending on the use of information system which sometimes is leading to harming the employees over there and will let them get fired since IS is covering everything and they are no longer needed in the company.

How information Systems are helping the company(part2)

v Bar Code scanning:

The use of bar code scanners made it unnecessary to stamp the price on every item (except in states that still require this for consumer protection).This reduced costs but also eliminated jobs of some of the clerks who formerly did the stamping.

v Cross Docking:

The system reduced the handling and storage of finished goods, virtually eliminating the role of the distribution centers and stores.

v Voice-based Order Filling (VOF):

By installing the VOF system, Wal-Mart eliminated product labeling costs since the system did not require paper lists and labels to be fixed on the goods.

v Reordering system:

This interaction between Wal-Mart and P&G is a win-win proposition because with better coordination, P&G can lower its costs and pass some of the savings on to Wal-Mart.

How information system are helping in the company(part1)

v RFID System:

Helps in keeping track of the goods for both Wal-Mart and the supplier and helps in saving time and effort and reducing the number of workers.

v Point-of-sale system (POS):

Helps in handling information efficiently and effective use of information which helps Wal-Mart avoid overstocking by learning what merchandise is selling slowly and also provides better inventory management.

v Telecommunications:

This allows automatic reordering and better coordination. Knowing exactly what is selling well and coordinating closely with suppliers permits Wal-Mart to tie up less money in inventory than many of their competitors. At its computerized warehouses, many goods arrive and leave without ever sitting on a shelf. Only10% of the floor space in Wal-Mart stores is used as an inventory area, compared to the 25% average for the industry.

Information system used in Wal-mart(part4)

    Reordering System:        

Wal-Mart built an automated reordering system linking computers between Procter & Gamble ("P&G") and its stores and distribution centers. The computer system sends a signal from a store to P&G identifying an item low in stock. It then sends a resupply order, via satellite, to the nearest P&G factory, which then ships the item to a Wal-Mart distribution center or directly to the store.