We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Supply chain savings at Wal-Mart
Forward Thinking

Supply chain savings at Wal-Mart

January 26, 2010
Supply Chain Quarterly Staff
No Comments

Continuing efforts to transform its supply chain have paid off handsomely for Wal-Mart Stores Inc., the retailer's executives told investors at its annual investor meeting in the fall. In 2009 the company achieved some $150 million in supply chain-related savings, said Senior Vice President of Private Brands Andrea Thomas —"and we think that's just the tip of the iceberg," she added.

Wal-Mart achieved those savings through increased visibility and the application of metrics to supply chain activities. The retailer has gained visibility and documented product specifications down to the component level for its private-label suppliers.

"This allows us to understand throughout all the different manufacturers we have and all the different parts that we have exactly what goes where, and how the supply chains have commonalities that allow us to gain efficiencies," Thomas said. At that point, Wal-Mart had conducted seven pilot projects to document full product lifecycles and gain visibility all the way back to the product source.

In addition, Thomas said that Wal-Mart has begun working on increasing and improving its manufacturing capacity through the use of performance scorecarding. Because the company has undertaken detailed scorecarding of all its manufacturers, it has witnessed a 20 percent improvement across its supply base.

This year Wal-Mart will begin a program for strategic sourcing of food, starting with produce. Pam Kohn, senior vice president for perishables and general merchandise, said the retailer plans to strengthen and develop partnerships with growers and suppliers of fruits and vegetables. By working with a few select growers, Wal-Mart believes it can improve quality, get the produce to market faster, and reduce costs through increased efficiency.

As part of that effort, Wal-Mart conducted a pilot program with apple growers in the state of Washington last year. As a result of that project, which also included Sam's Club and outlets in Canada and Mexico, the retailer was able to reduce its cost of goods for apples by more than 10 percent.

Although the company plans to focus initially on produce, it intends to include other grocery categories like seafood and frozen products in the near future and develop a global procurement program for its private brands.

  • Related Articles

    A peek inside Wal-Mart Canada's "green" distribution center

    A peek inside Wal-Mart Canada's "green" distribution center

    For Wal-Mart, being "best in market" is key to global success

Recent Articles by Supply Chain Quarterly Staff

APM Terminals to add capacity at Port of Mobile

Cargo volume down in Oakland

Safety experts to headline National Forklift Safety Day 2022 program on June 14

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing