Lead: Steve Jobs, president of Apple, once said that if there are only three IT companies left in the world, it must be Microsoft, Intel and Dell. If there are only two left, it will be Dell and Wal-Mart. The following is the logistics and supply chain management of Wal-Mart that I brought to you. I hope it helps you.
Wal-Mart's persistent pursuit of information technology is obvious to all, and because of this, Wal-Mart's low-price strategy has been tried and tested.
First, the application of cost reduction method in logistics distribution center
Anyone who knows a little about Wal-Mart knows that the low-cost strategy keeps the logistics cost low, which is a trump card for a cheap retailer like Wal-Mart. It is Wal-Mart's consistent business purpose to reduce the cost as much as possible in the process of logistics operation and let the saved cost benefit consumers.
In the whole logistics process, the most expensive part of Wal-Mart is transportation, so when setting up new stores, Wal-Mart should start from its existing distribution center as far as possible, and stores are generally located around the distribution center to shorten the delivery time and reduce the delivery cost. Wal-Mart's investment in logistics is also very concentrated in the construction of logistics distribution centers.
1, a fast and efficient logistics distribution center
Logistics distribution centers are generally set in the center of retail stores above 100, that is, distribution centers are set in major sales markets. This enables a distribution center to meet the needs of more than 0/00 sales outlets in nearby surrounding cities. In addition, the transportation radius is relatively short and uniform, and a distribution center is basically established with a business circle of 320 kilometers.
The order information of Wal-Mart's branches is transmitted to the distribution center through the company's high-speed communication network, and the distribution center formally orders from suppliers after integration. The supplier can send the goods directly to the ordering store or distribution center. Some people describe Wal-Mart's distribution center as follows: the average area of these giant buildings exceeds 1 10000 square meters, which is equivalent to the size of 24 football fields; It contains all kinds of goods that people can imagine, from toothpaste to TV sets, from sanitary napkins to toys, with more than 80 thousand kinds of goods. Wal-Mart has more than 62 distribution centers in the United States, serving more than 4,000 shopping malls. These centers are carefully deployed according to the trade areas of various places. Usually, starting from any center, a car can reach the store it serves within one day.
In the distribution center, the computer is responsible for everything. After the supplier sends the goods to the distribution center, it goes through the procedures of checking the purchase plan and commodity inspection, and then sends them to different locations on the shelf for storage. When each commodity is put into storage, the computer will record their position and quantity one by one; Once the store puts forward the purchase plan, the computer will find out the storage location of these goods, print out a label with the store code and stick it on the goods. The whole package of goods will be sent directly to the conveyor belt, and the scattered goods will be taken out by the staff and sent to the conveyor belt. Commodities go in and out on several kilometers of conveyor belts, and the bar codes on them are identified by laser and sent to the place where they should be sent. The output of goods on the conveyor belt can reach 200,000 cases a day. For scattered goods, there are some signal lights on the conveyor belt, including red, yellow and green. Employees can determine the store to deliver goods according to the signal light to pick up these goods and put them in boxes to avoid wasting space.
One end of the distribution center is a loading platform, which can load 130 trucks at the same time, and the other end is an unloading platform, which can park 135 trucks at the same time. The distribution center operates 24 hours a day, with an average of more than 200 trucks loading and unloading goods every day. Wal-Mart uses trucks as big as possible to transport goods. There may be about 65,438+06 meters long containers, which are longer or taller than container transport trucks. This kind of motorcade can often be seen on American highways. Wal-Mart's trucks are all its own, and the drivers are also Wal-Mart employees. They run on the highway between American States, and every cubic meter of the car is filled with oil, which is very helpful to save costs.
The company's more than 6,000 transport trucks are all equipped with satellite positioning systems, and the headquarters can see the location, cargo and destination of each vehicle at a glance. Therefore, at any time, the dispatching center can know where these vehicles are and how far they are from the store, and also know where a commodity has been transported and how long it will take to get to the store. In this respect, Wal-Mart is accurate to the hour. If employees know that the arrival time of the motorcade is delayed due to weather, road maintenance and other reasons, the stevedores can arrange other work instead of waiting.
Flexible and efficient logistics and distribution make Wal-Mart have an advantage in the fierce retail competition. Wal-Mart can guarantee that the delivery time of goods from the distribution center to any store will not exceed 48 hours, and the shelves of Wal-Mart stores can be replenished twice a week on average, while other stores in the same industry can only replenish goods once every two weeks on average; By keeping as little inventory as possible, Wal-Mart not only saves storage space, but also reduces inventory costs.
In the study of American retail enterprises, the economist Dr. Si Tong found that among the three major retail enterprises in the United States, the proportion of commodity logistics cost to sales was 1.3% for Wal-Mart, 8.75% for Kmart and 5% for Sears. If the annual sales amount is $25 billion, the logistics cost of Wal-Mart is $65.438+$86.25 million less than that of Kmart and $425 million less than that of Sears, which is staggering.
2. The operation mode of Wal-Mart distribution center
One end of the distribution center is a loading platform, and the other end is a unloading platform. These two operations are separate. It looks no different from the way of loading and unloading, but the working efficiency has improved a lot. The distribution center is a large warehouse, but it is conceptually different from the warehouse.
Cross Docking CD (Cross Docking) works in a unique way and is extremely efficient. When the goods are purchased, they are directly loaded and delivered, and there is no warehousing and sorting operation, which reduces the cost and speeds up the circulation.
800 employees work in shifts 24 hours a day, and the wages of Wal-Mart workers are not high, because these workers are basically junior high school students and high school students, and they are only specially trained by Wal-Mart.
The goods stay in the distribution center for no more than 48 hours. Wal-Mart has tens of thousands of goods to sell, including food, clothing, housing, use and transportation. In particular, the residence time of food, fast-moving consumer goods and other commodities directly affects the use.
How does Wal-Mart continuously improve the organizational structure of its distribution center?
Every store delivers goods 1 time every day (competitors deliver goods 1 time every five days), and at least once a day means that the inventory in the store or retail store can be reduced. This greatly reduces the cost of retail space and manpower management. To achieve this goal, we must constantly improve the organizational structure, so that the establishment of the operating model can meet this demand.
190 There were 14 distribution centers in the world, and 70 distribution centers were established in 5438+0 in 2006. As a Fortune 500 company, Wal-Mart has only operated in a few countries so far, only in areas where it is sure to develop. Wal-Mart is very cautious in its operation, and under such circumstances, it has grown to 70, indicating that the organizational structure adjustment of its logistics distribution center is in place.
Distribution cost accounts for 2% of sales, which is 50% of competitors' (while only 50% of competitors' goods are distributed centrally). Wal-Mart's distribution cost accounts for 2% of its sales. Generally speaking, the logistics cost accounts for about 10% of its total sales, and some food industries even reach 20% or 30%. Wal-Mart's consistent philosophy is to sell the best things to consumers at the lowest price, which is also where its success lies. In addition, only 50% of competitors' goods are distributed centrally, while more than 90% of Wal-Mart's goods are distributed centrally, and only a few of them can be sent directly to the store from the processing plant, so the cost is much different from that of competitors.
Second, the application of logistics information technology
Wal-Mart's success is largely due to the ingenious combination of cutting-edge technology and logistics system of its leading competitors for at least 10 years. As early as 1970s, Wal-Mart began to use computers for management. In the early 1980 s, they spent another $400 million to buy commercial satellites and realized global networking; In 1990s, the world-leading satellite positioning system (GPS) was adopted to control the company's logistics, which improved the distribution efficiency and won the satisfaction and loyalty of users with speed and quality.
All Wal-Mart's systems are based on a distribution system called UNIX, and adopt conveyor belts and a very large open platform, as well as product coding, automatic replenishment system and laser identification system, which have saved considerable costs for Wal-Mart. Wal-Mart has always advocated the adoption of the most modern and advanced systems, reasonable transportation arrangements, and ultimate success through computer systems and distribution centers.
1. Establish the world's first logistics data processing center.
In 1970s, Wal-Mart established the Logistics Management Information System (MIS), which was responsible for processing system reports and accelerating its operation. In the early 1980s, Wal-Mart cooperated with Hughes to launch a logistics communication satellite, which made Wal-Mart develop by leaps and bounds. 1983 adopts POS machine, namely point-of-sale data system. 1985 established EDI (electronic data interchange) system, which is paperless and all information is operated on the computer. 1986 established QR, that is, rapid response mechanism to quickly stimulate market demand.
Wal-Mart is the first in the world to realize 24-hour computer logistics network monitoring within the group, which integrates procurement, inventory, ordering, distribution and sales. For example, customers shop in Wal-Mart stores and then print invoices through POS machines. At the same time, the information will be displayed on the computers of the personnel in charge of production planning and procurement planning and suppliers, and each link will complete their work in time through the information, thus reducing a lot of unnecessary time waste and speeding up the logistics cycle.
2. Application of Wal-Mart Logistics Information Technology
Radio frequency technology /RF (radio frequency) can be used in combination with bar codes in daily operations.
Portable data terminal equipment /PDF, the traditional way is to make a phone call, send an email or send a report after the goods arrive, and the goods can be directly inquired through the portable data terminal equipment.
Logistics bar code /BC, using logistics bar code technology, can collect and track enterprise logistics information timely and effectively.
Radio frequency identification (RFID) is a non-contact automatic identification technology. It can automatically identify the target object and obtain relevant data through radio frequency signals. The identification work can work in various harsh environments without human intervention.
In 2004, Wal-Mart, the largest retailer in the world, required its top 65,438+000 suppliers to use RFID technology when sending pallets and packing boxes to its distribution center before 65,438+0 in 2005, and put them into use in a single commodity before 65,438+0 in 2006. Experts predict that from 2005 to 2007, Wal-Mart suppliers will use 5 billion electronic tags every year, and Wal-Mart will save 8.35 billion dollars every year. At present, about 5,000 sets of RFID systems have been installed in the world, and the actual annual sales are about 964 million US dollars.
With these information technologies, Wal-Mart has made great progress.
Third,? Seamless? Application of supply chain
The meaning of logistics includes not only the flow and storage of materials, but also the degree of cooperation between upstream and downstream enterprises. Wal-Mart's success is largely due to its adoption? Seamless point-to-point logistics system based on. ? Seamless? It means to make the whole supply chain reach a very smooth connection. Wal-Mart refers to the supply chain, which means that the process from the factory to the store shelves should be as smooth as possible, just like a seamless coat. In the supply chain, every supplier is a link in this chain, and Wal-Mart makes the whole supply chain a very stable, smooth and smooth process. In this way, Wal-Mart's transportation, distribution, order and purchase processing are all part of a complete network, which greatly reduces the logistics cost.
In terms of connecting upstream customers, Wal-Mart has a very good system that allows suppliers to directly access Wal-Mart's system. What does Wal-Mart call it? Retail? . Through retail, suppliers can know the sales situation at any time, predict the future demand for goods and decide the production situation, so that the cost of their products can also be reduced, so that the whole process can be integrated? Seamless? This process.
Wal-Mart's real challenge is to provide the services that customers need. As we all know, the requirements of logistics business are complicated, and some products may be damaged sometimes, so we need some special abilities to transport and sell packaged products. Therefore, for Wal-Mart, the types and quality of products it can provide are very important. In cooperation with Wal-Mart,
Among them, Wal-Mart seems to have been able to seek this combination of high quality and variety, and its cost is the lowest in shopping malls.
The circulation of logistics has neither ended nor begun. It is actually a cyclic process, in which any point can be taken as the beginning, and the cycle involves every point. Wal-Mart starts with customers. When a customer goes to a store, they buy some products, such as a child's diapers. After he buys them, the system linked to the distribution center will automatically replenish them in time, and the distribution center can get the goods directly from the supplier. The distribution center is actually a hub, with suppliers' products and then providing them to shopping malls. Suppliers can only provide goods to the distribution center, which reduces a lot of costs.
Wal-Mart is sometimes transported by air, sometimes by sea, and some by truck and road. In China, Wal-Mart uses 100% road transportation, that is, trucks transport products to shopping malls, then unload them, and then automatically put them into the store system. In Wal-Mart's logistics, it is very important that Wal-Mart must ensure that the products obtained by the store are exactly the same as those on the invoice, so the whole process of Wal-Mart must be accurate and there can be no mistakes. In this way, the store can unload the whole truck without checking every product. They can save a lot of time because they believe that there are no mistakes in their products. Wal-Mart has formed a very precise tradition in this respect, which can help reduce costs. After receiving the goods, these stores put them on the shelves and sell them to consumers. This is the whole cycle of Wal-Mart logistics.
The guiding principle of Wal-Mart's logistics business, whether in the United States or in other parts of the world, is 100% consistent and complete logistics system. No matter how big or small the logistics project is, Wal-Mart must concentrate all the logistics processes under an umbrella structure. In the supply chain, every supplier is a link in the chain, and Wal-Mart must make the whole supply chain a very smooth process. In this way, Wal-Mart's transportation, distribution and processing of orders and purchases are all part of a complete network. This advantage can greatly reduce the cost. In Wal-Mart's supply chain, if we can do this, we can save all the money we can in all links. In this way, the whole chain and the whole link can save a lot of money.
Wal-Mart's logistics department operates 24 hours a day, 7 days a week. Wal-Mart sells a lot of products, so logistics support is very necessary. To ensure that these products continuously flow to Wal-Mart stores, there is no stopping process. Wal-Mart has adopted some cutting-edge technologies, including retail technology and more advanced and modern information technology, which can effectively improve efficiency and save costs.
case analysis
Analysis: The reasons for the good development of Wal-Mart logistics.
A: Reason 1: Wal-Mart has a fast and efficient logistics distribution center. Wal-Mart's distribution center is generally located in the main sales market. Generally, the transportation radius is shorter and more uniform.
Reason 2: Wal-Mart's distribution center has strong information technology support. Using modern information technology to manage commodities.
Reason 3: Have strong traffic resources. Use trucks as big as possible to transport goods. A satellite positioning system was installed.
Reason 4: Wal-Mart implements fast delivery. It won't take more than 48 hours to deliver to any store.
Reason 5: Actively use many new technologies. Wal-Mart has always advocated the adoption of the most modern and advanced systems. Such as UNIX distribution system, conveyor belt and super-large open platform, product coding, automatic replenishment system, laser identification system and so on.
Reason 6: adopt seamless point-to-point logistics system. Suppliers can access Wal-Mart's system to inquire about their sales. Conducive to the development of supply chain.
Analysis: Enlightenment from Wal-Mart.
1. Establish an advanced and efficient logistics and supply chain management system.
2. The increasing informatization is welcoming logistics construction, and China is gradually becoming a global manufacturing center, which has ushered in a good opportunity for the development of logistics management and supply chain management. It is necessary to strengthen the informationization of logistics.
3. Strengthen the strategic cooperation of suppliers. Form a unified and competitive supply chain.
abstract
The secret of Wal-Mart's success lies in that the investment in management information system strengthens the core value of the enterprise.
Wal-Mart manages the cash and cash flow of enterprises in real time through a series of information investment, with the goal of speeding up the turnover of goods, reducing inventory losses and increasing profits. Although informatization is not a sufficient condition for Wal-Mart's success, it is a necessary condition for Wal-Mart's success.
With the rapid development of network information industry, supermarket enterprises in China should learn from Wal-Mart's successful experience and introduce advanced information technology according to their own actual situation. Through information management and logistics distribution center, a powerful data processing system and management center will be established, and a perfect supply and marketing commodity system, enterprise logistics whole-process control system and retail terminal system will be established. Realizing the informatization of chain operation can not only solve the problem of cost management, realize target cost control and reduce operating expenses, but also bring marketing management, financial management and inventory management into unified standardized management, and finally enhance the agile response ability and core competitiveness of enterprises to market changes.
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