Wal-Mart Takes Back Its Supply Chain, IT In The Spotlight
Written by Frank HayesMay 26th, 2010
Supply chains don't get a lot of love from IT. They're not sexy; no customer-facing payment systems or kiosks to love, just pallets, diesel and rubber. But Wal-Mart is about to change that. Retail's $405 billion gorilla is taking over the trucks that deliver products from thousands of its suppliers. That may not sound like it has much to do with IT, but boy, does it ever. True to its contrarian roots, Wal-Mart is turning just-in-time inventory inside-out--and taking back its supply chain.
Wal-Mart isn't in the trucking business any more than its suppliers are, and just squeezing out a little savings in fuel costs would be a wasted opportunity. By stretching its supply-chain perimeter though, Wal-Mart will get much better control over the inventory coming in: when it arrives, how it arrives and how quickly it can be turned around. And that's all about IT.
This Story Is Only Available For Premium Subscribers. Click Or Login In Below To Read The Rest Of This Story.
Already a Subscriber? Login Here
2 Comments | Read Wal-Mart Takes Back Its Supply Chain, IT In The Spotlight
Leave a Reply
Readers, specifically those who want to comment on a story:
Our Comment SPAM system is getting very aggressive these days and has been blocking legitimate comments. If you post a comment and don't see it appear within 2 hours or so, can you please send a heads-up to customer-service@storefrontbacktalk.com? Ideally, please include the time you posted the comment. That will allow us to try and hunt for it. Thanks! P.S. We're working on fixing the system, but we don't want to lose any valuable comments in the meantime.
Our Comment SPAM system is getting very aggressive these days and has been blocking legitimate comments. If you post a comment and don't see it appear within 2 hours or so, can you please send a heads-up to customer-service@storefrontbacktalk.com? Ideally, please include the time you posted the comment. That will allow us to try and hunt for it. Thanks! P.S. We're working on fixing the system, but we don't want to lose any valuable comments in the meantime.
-Christine
June 1st, 2010 at 6:38 pm
Mr. Hayes, thanks for a fresh, well written update and perspective on WM’s approach to the classic technique of backhaul.
Going back to ICC / Lenoir Chair days savvy retailers have been looking to “not ride empty,” to take early control of goods, scan pallets (pallet licenses) and impose penalties for late delivery, mixed pallets as well as a score of Routing Guide/Instruction violations. What was missing was the virtual communications available today.
To WM’s credit they are doing a magnificent job of putting it all together … the beauty of WM is that they are 360 in their approach to savings and have magnificently perfected the techniques of the BHAG (big hairy audacious gorilla – thanks Tom Peters).
An in-depth at the WM process used to come to this decision and their evaluation of the side-effects/consequences would be most beneficial to the reader.
Thanks again.
jc
June 11th, 2010 at 10:26 am
Honestly, nothing is being turned upside down, this kind of analysis, that only sometimes defies conventional wisdom, has been done for years.
It just happens that is about WM, and that is news.