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.

Information system used in Wal-Mart(part3)

    Cross Docking:   

Wal-Mart has invested heavily in its unique cross-docking inventory system. Cross docking has enabled Wal-Mart to achieve economies of scale, which reduces its costs of sales. With this system, goods are continuously delivered to stores within 48 hours and often without having to inventory them. The manufacturer directly forwarded the goods to a place called the ´staging area. The goods are packed there according to the orders received from different stores and then directly sent to the respective customers.

Lower prices also eliminate the expense of frequent sales promotions and sales are more predictable. Cross docking gives the individual managers more control at the store level.

    Voice-Based Order Filling (VOF)

In1998, Wal-Mart installed a voice-based order filling (VOF) system in all its grocery distribution centers. Each person responsible for order picking was provided with a microphone/speaker headset, connected to the portable (VOF) system that could be worn on waist belt.

They were guided by the voice to item locations in the distribution centers.

The VOF system also verified quantities picked, and could respond to a variety of requests such as providing product detail (type, price, barcode number, etc.)